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Marvell (MRVL -6.6%) dives after being ordered by a jury to pay $1.17B in damages in a patent...

Marvell (MRVL -6.6%) dives after being ordered by a jury to pay $1.17B in damages in a patent suit, the WSJ reports. The chipmaker has been sued by Carnegie Mellon over a patent allegedly infringed by its hard drive controllers. Marvell (current market cap of $4.15B), which has been claiming prior art, will undoubtedly appeal, and probably see that damages figure reduced by a judge.
Comments (3)
  • Does anybody have a precedent for how this is likely to play out from here? Is this not one of the largest patent infringement judgements in hisotry? Seems absolutely rediculous.
    26 Dec 2012, 03:59 PM Reply Like
  • The jury should be a small panel of tech. experts.
    27 Dec 2012, 04:08 AM Reply Like
  • Interestingly on the $1.17bn judgement which implicitly assumes a royalty/licence fee of 50c per unit shipped I have done some analysis on ARM which implies a once off licence fee + royalty fee of 8.8c per unit chip shipped for the year 2011 (see 20-F pg.34). Applying this to the most recent judgement gets you to a more realistic $206m figure. If on appeal this judgement is not thrown out or drastically reduced it will be the equivalent of opening Pandoras box for the ambulance chasing legal parasites and a major body blow to the technology industry in the US.
    27 Dec 2012, 07:32 PM Reply Like
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