The Intel headquarters in Santa Clara, California, on April 23, 2025.
Photographer: David Paul Morris/Bloomberg
- - Intel argues patent license treats VLSI as Finjan affiliate
- - Verdict is boon to Intel license defense in sprawling dispute
Fortress controls both VLSI and Finjan Inc., an Austin, Texas, jury determined Thursday . Intel argued during the three-day trial in the US District Court for the Western District of Texas that the semiconductor giant’s 2012 licensing agreement with Finjan covered VLSI’s patents because the entities are affiliated under the control of the asset-management firm.
The win for Intel boosts its push for the court to ultimately rule that the semiconductor giant’s license with Finjan requires a November 2022 verdict exceeding $900 million to be thrown out, potentially setting up a similar ruling regarding another $2.2 billion verdict VLSI won against Intel.
Fortress, VLSI, and Intel each declined to comment.
VLSI and Intel’s patent dispute has spanned federal district courts, appeals courts, and an administrative tribunal.
Two Texas juries separately found Intel infringed VLSI patents, with one verdict totaling $2.2 billion. The US Court of Appeals for the Federal Circuit threw that total in doubt, ruling Intel should be allowed to present its patent-license defense.
That led Judge Alan Albright to set this week’s trial in the case in which a jury awarded VLSI $949 million in November 2022. Albright ruled at the start of the trial the patent infringement verdict couldn’t be shared with the jury looking into Fortress’ control.
Closing Arguments
Intel argued on the last day of the trial, which included testimony and closing arguments, that language in documents concerning governance structure, Securities and Exchange Commission filings, and Fortress’ website, showed the asset-management company controlled VLSI and Finjan.
Many on the leadership teams at Fortress and VLSI are attorneys who understand what that language means, Intel’s counsel, Joe Mueller of Wilmer Cutler Pickering Hale and Dorr LLP, noted while cross-examining Eran Zur, Fortress’ IP head.
“There are highly sophisticated folks at the top ranks of Fortress,” Mueller said.
Jurors were told during that trial that two of VLSI’s three board members are Fortress employees, and the majority of Finjan’s board members are also Fortress employees. VLSI argued its board members act in investors’ interest, not Fortress’.
Morgan Chu of Irell & Manella LLP, representing VLSI, told the jury investors—not Fortress—control VLSI and Finjan. VLSI argued throughout the trial that investors own more than 90% of the patent-monetization entity, and separate investors own 99% of Finjan.
Chu argued those investors have ultimate control, telling jurors to “follow the money.”
Mann, Tindel & Thompson also represents VLSI. Gillam & Smith LLP also represents Intel.
The case is VLSI Technology LLC v. Intel Corp., W.D. Tex., No. 1:19-cv-00977, verdict reached 5/29/25.
Intel Convinces Jury Fortress Runs VLSI in $3 Billion Fight (3)
Intel Corp. convinced a Texas jury that VLSI Technology LLC is controlled by Fortress Investment Group, setting up a potential escape from more than $3 billion in patent-infringement verdicts against the chipmaker in the lengthy dispute.