A Virginia judge spent two tense hours Wednesday unraveling whether VLSI Technology LLC can move forward with its VLSI, PQA conspiracy claims, accusing Patent Quality Assurance LLC of fraud, extortion, and abusing the federal patent review system during its successful attack on a lucrative VLSI chip patent. The hearing marked the latest chapter in a sprawling patent war already tied to billions of dollars in litigation.
VLSI Says PQA’s Patent Challenge Was Built on a “Scam”
VLSI alleges PQA manipulated the Patent Trial and Appeal Board (PTAB) process, claiming the South Dakota entity wasn’t properly incorporated and used its IPR petition as leverage to extort money. PQA fired back, insisting VLSI is improperly asking a Virginia state court to second-guess federal PTAB determinations and the corporate rules of another state.
Judge Rebecca J. Wade previously tossed VLSI’s first lawsuit in August, ruling the initial claims — centered on misuse of inter partes reviews — lacked merit. Now she is scrutinizing an amended complaint alleging PQA fraudulently misused the IPR system, a twist VLSI argues should survive dismissal.
