R2 Semiconductor, a Third Point Ventures portfolio company (“R2”), today announced two important updates in its patent infringement case against German subsidiaries of Intel Corp (“Intel”) (Nasdaq: INTC) and its customers, Dell Technologies (“Dell”) (NYSE: DELL) and Hewlett Packard Enterprise Company and HP Inc. (together “HP”) (NYSE: HPE and HPQ). First, Intel’s attempt to stay injunctions preventing sales of products using R2’s patented technology in Germany were rejected, this time by the Higher Regional Court of Dusseldorf, handing Intel another loss in this case. Second, on Friday, R2 filed patent infringement lawsuits in Germany against Amazon Web Services EMEA SARL and Fujitsu Technology Solutions GmbH claiming both companies are infringing on the same patent.
German Court Denies Intel’s Attempt to Stay Injunction
On March 8, the Higher Regional Court of Dusseldorf summarily denied Intel’s attempt to halt last month’s judgments by the Dusseldorf Regional Court that found Intel, Dell and HP were infringing on R2’s patented integrated voltage regulation technology. This means that the injunctions against both Intel and the co-parties remain enforceable, prohibiting them from selling Intel chips and computers and servers using R2’s technology, potentially including Intel’s latest generation chips (despite public suggestions to the contrary attributed to Intel.)
David Fisher, Founder and CEO of R2 Semiconductor, and inventor of the patent at issue said, “We are gratified by the Higher Regional Court’s thoughtful decision recognizing the thorough and conscientious work of the Regional and Patent Courts. Given how much Intel was relying on this attempt to prevent the pending injunctions, how comprehensive the ruling is with regard to Intel’s products, and how important R2’s innovations are to those products, we hope Intel finally recognizes that it cannot continue participating in the German PC, laptop, and server market without compensating R2 for its patented technology.”
Intel has previously stated publicly that it hopes pending patent nullity proceedings before the German Patent Court will provide another means to help it avoid complying with the injunction. But, with the Higher Regional Court of Dusseldorf’s ruling, the February 7, 2024 judgment of the Regional Court will be in full effect for an extended period before that proceeding concludes either late Fall or Winter of 2024. As noted, the German Patent Court has already given its preliminary opinion that the patent is valid.
The patent extends throughout Europe through 2030, and enforcement may be brought by R2 in each of the 39 EPC member states, should it so choose. The next forum to adjudicate the dispute will be in London, where the parties are slated for a trial in April on the question of Intel’s infringement of the same patent in the United Kingdom, where R2 again seeks an injunction as well as monetary damages.
R2 Files Actions Against Intel Customers Amazon Web Services and Fujitsu
R2 filed patent infringement lawsuits against Amazon Web Services EMEA SARL and Fujitsu Technology Solutions GmbH in the Dusseldorf Regional Court in Germany, claiming both companies are using Intel chips that infringe on R2’s groundbreaking patent covering integrated voltage regulation. R2 expects these new actions will be on a relative “fast track”, given that these defendants are using the same technology that has already been held to infringe, as described above.
R2 continues to be primarily backed in its efforts in these litigations by its majority shareholder and day one investor, Third Point Ventures. Daniel S. Loeb, Founder & CEO of Third Point, said: “Third Point Ventures has invested in David Fisher’s innovations for 24 years, starting in 2000 with Radia Communications, which was later acquired by Texas Instruments, and for the last 15 years at R2 Semiconductor. We are disappointed that Intel has chosen to try to bully an American inventor rather than acknowledge their error and compensate R2 for its innovative technology. Intel is the only chipmaker David or R2 have ever accused of violating its patents, and we are proud to support them in this fight to assert their patent rights across Europe against a behemoth like Intel.”
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