A Texas federal jury has delivered a significant verdict in the ongoing patent dispute involving Intel Corporation, Fortress Investment Group, and VLSI Technology LLC. The eight-member jury concluded that Fortress Investment Group exercises control over both VLSI Technology and Finjan Holdings. This determination sets the stage for the presiding judge to decide whether Intel may invoke its license agreement with Finjan to avoid liability for patent infringement findings related to VLSI.
After only one hour of deliberation on the third day of trial before U.S. District Judge Alan Albright, the jury answered the critical question of whether Fortress controlled both VLSI and Finjan at any point following Intel’s November 2012 license agreement with Finjan.
Intel’s legal team argued that Fortress exerts decisive influence over VLSI, citing Fortress employees’ majority presence on VLSI’s board and control over its funding. Intel maintained that this common control could impact the application of the license agreement in their patent infringement case.
In contrast, VLSI asserted that Fortress representatives serve only as investor delegates on the board and do not exercise direct control over company operations. VLSI emphasized Fortress’s role as a service provider to the investment funds rather than a controlling entity.
The case featured testimony from Fortress IP head Eran Zur, with extensive legal arguments presented by both parties’ counsel. The jury’s verdict now requires Judge Albright to assess the implications of this control finding on the broader patent litigation between Intel and VLSI.
Intel currently faces significant patent infringement liabilities, with Texas federal juries awarding VLSI approximately $3 billion in damages to date. Portions of these verdicts remain under appeal or subject to retrial.
Intel is represented by Joseph J. Mueller, Mary V. Sooter, Dominic E. Massa of WilmerHale, Harry Lee Gillam Jr. of Gillam & Smith LLP, and in-house counsel Gemma Suh. VLSI is represented by Morgan Chu, Benjamin W. Hattenbach, Alan J. Heinrich, Amy E. Proctor, Elizabeth C. Tuan, Charlotte J. Wen of Irell & Manella LLP, and Andy Tindel of Mann Tindel Thompson.
The ongoing case is VLSI Technology LLC v. Intel Corp., case number 1:19-cv-00977, in the U.S. District Court for the Western District of Texas.
