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Intel Corp. and VLSI Technology LLC have agreed to pause motions in a patent dispute after being urged by a Delaware federal judge. The case, which centers on Intel’s claim that it holds licenses to patents VLSI is currently asserting, will remain on hold as a related patent trial in Texas moves forward.

U.S. District Judge Colm F. Connolly advised both sides to reach an agreement that would ensure the license issues in the Delaware case would be resolved according to any ruling made by U.S. District Judge Alan Albright in Texas, where a trial is scheduled for May 2025.

Judge Connolly also mentioned the possibility of a Delaware trial by January 2026, should further legal action be needed. The pause was agreed upon after Intel filed its lawsuit in June, asserting it has licenses to several patents VLSI is contesting in Delaware, Texas, California, and China.

The dispute centers around Intel’s declaratory judgment suit, which argues that it already holds licenses for the patents in question. Intel’s deal with a company acquired by Fortress Investment Group, which manages assets of funds owning VLSI, forms the basis of this claim.

Intel has faced significant losses in prior patent litigation in Texas, with a pair of jury verdicts leading to about $3 billion in judgments. However, Intel has had success in appealing some of these rulings, with a retrial ordered for one verdict that originally amounted to $2.18 billion. The Texas trial includes claims that Intel infringed on one of VLSI’s patents, which resulted in a $948.8 million judgment.

VLSI’s legal team, led by Amy E. Proctor of Irell & Manella LLP, noted that the Delaware case should only move forward if issues in Texas do not resolve the situation. If the Texas court’s decision on the $948 million verdict stands, the Delaware action might need to restart from square one.

During the proceedings, Judge Connolly expressed concerns about both sides engaging in strategic litigation moves, with VLSI seeking to delay the Delaware case and Intel pushing for quick resolution. Proctor stressed that new discovery in Delaware would be risky, but Judge Connolly warned that if the case continued in Delaware, it might not be easy for VLSI to dismiss the matter.

Intel and VLSI both declined to comment on the court's developments.

The case is Intel Corp. v. VLSI Technology LLC, case number 1:24-cv-00803, in the U.S. District Court for the District of Delaware.