Vicor patents asserted against infringing NBMs withstand validity challenges
Vicor (NASDAQ: VICR) announced that the United States Patent and Trademark Office's Patent Trial and Appeal Board (PTAB) denied Delta Electronics' three Inter Partes Review (IPR) petitions challenging the validity of Vicor's patents. Filed in 2023, these patents cover power converter modules used in data centers, AI, and cloud computing systems. Vicor's ITC complaint seeks to protect its patents by barring infringing products from entering the U.S. The PTAB's recent decisions support Vicor's IP rights, bolstering its case for an exclusion order against Delta and its customers.
- PTAB decisions upheld the validity of Vicor's patents, strengthening its IP position.
- Vicor's ITC case seeks a exclusion order to protect against infringement, potentially stopping infringing products from entering the U.S.
- The PTAB's decisions may lead to favorable outcomes for Vicor in ongoing legal battles.
- Vicor's IP protection could boost investor confidence and stock performance.
- Vicor remains embroiled in costly and time-consuming legal battles.
- The pending ITC decision introduces uncertainty, potentially affecting short-term stock performance.
- Legal disputes with significant industry players like Delta and Foxconn could strain business relations and operational focus.
Insights
Vicor's recent legal victories against Delta and Foxconn are significant for several reasons. Firstly, the Patent Trial and Appeal Board (PTAB) decisions against Delta's Inter Partes Review (IPR) petitions reinforce the strength of Vicor's patents. The PTAB's decision indicates that Delta's challenges lacked substantial merit, underscoring the robustness of Vicor's intellectual property.
This development is noteworthy for investors because it reduces legal uncertainties surrounding Vicor’s patents. In the short term, Vicor's stock may see a positive impact as investor confidence grows concerning the company's legal standing. In the long run, maintaining strong IP protection fosters a competitive edge, particularly in high-tech industries like power conversion used in data centers and AI systems.
Additionally, the involvement of major companies like Delta and Foxconn in these disputes highlights the potential value of Vicor's technology. The legal outcomes thus far suggest that Vicor can effectively defend its patents, which could deter other potential infringers.
The legal victories for Vicor potentially enhance its financial stability and future earnings. Legal battles, especially over intellectual property, can be costly and prolonged. Winning these cases means Vicor avoids further litigation expenses and potential losses from royalty-free licensing claims. These savings protect profitability and can be redirected towards research, development and market expansion.
Moreover, the impending potential exclusion order against Delta and its customers could limit competition in the U.S. market, allowing Vicor to expand its market share. This could lead to increased
Investors should monitor the final decision from the International Trade Commission (ITC). A favorable ruling could significantly bolster Vicor's position and financial outlook, while any unfavorable ruling might temper some of the current optimism.
Vicor’s patents cover important innovations in power converter technology, which are essential for high-performance computing systems, including AI accelerators, TPUs, GPUs and CPUs. The ‘481, ‘761 and ‘950 patents address advanced power management techniques: digital control of resonant converters, non-isolated, soft-switching bus converters and symmetric heat generation in power semiconductor devices. These technologies are vital for improving efficiency, reducing heat and ensuring reliable performance in data centers and AI infrastructure.
For investors, these patents signify a strong technological moat around Vicor’s offerings, making it tougher for competitors to replicate their innovations without infringing. Consequently, Vicor's ability to protect its patents through successful litigation enhances their competitive positioning and potentially drives higher demand for their patented products.
In the long term, these innovations could pave the way for newer, more efficient power conversion solutions, keeping Vicor at the forefront of technological advancements in a rapidly evolving sector. Investors should look forward to how Vicor leverages these technologies to build more advanced products and possibly expand into new markets.
ANDOVER, Mass., May 28, 2024 (GLOBE NEWSWIRE) -- Vicor Corporation (NASDAQ: VICR) today announced that the Patent Trial and Appeal Board (“PTAB”) of the United States Patent and Trademark Office (“USPTO”) has denied institution of Inter Partes Review (“IPR”) of all patents asserted by Vicor against Delta Electronics (“Delta”) and downstream customers at the International Trade Commission (“ITC”).
On July 13, 2023, Vicor filed a complaint at the ITC against Delta alleging infringement of three Vicor patents: U.S. Patent Nos. 9,166,481 (the “‘481 patent”); 9,516,761 (the “‘761 patent”) and 10,199,950 (the “’950 patent”) (“the asserted patents”). On August 17, 2023, the ITC instituted an investigation of “power converter modules used in data center server, artificial intelligence and cloud computing systems, to power artificial intelligence ("AI") accelerators, tensor processing units ("TPU"), graphical processing units ("GPU") and central processing units ("CPU"), and computing systems containing the same.” In its ITC case, Vicor seeks a limited exclusion order and cease-and-desist orders to protect Vicor’s domestic industry by barring from entry into the United States power converter modules and computing systems infringing any of the asserted patents. The ITC held an evidentiary hearing from April 29 to May 3, 2024, and its determination of Vicor’s claim is forthcoming.
On November 2, 2023, Delta filed an IPR of the ‘950 patent, challenging its validity. On May 17, 2024, the PTAB, having determined that Delta had not established a reasonable likelihood of prevailing in its invalidity challenge, issued its decision 10,199,950 denying institution.
On November 13, 2023, Delta filed an IPR of the ‘481 patent, challenging its validity. On May 17, 2024, the PTAB, having determined that Delta had not established a reasonable likelihood of prevailing in its invalidity challenge, issued its decision 9,166,481 denying institution.
On November 22, 2023, Delta filed an IPR of the ‘761 patent, challenging its validity. On May 24, 2024, the PTAB, having determined that Delta had not established a reasonable likelihood of prevailing in its invalidity challenge, issued its decision 9,516,761 denying institution.
The ’481 patent covers digital control of zero-current and zero-voltage switching resonant power converters. The ’950 patent covers non-isolated, fixed-ratio, soft-switching bus converters and power distribution systems containing the same. The ’761 patent covers power converters with a symmetric heat generation between two sets of power semiconductor devices. Copycat Non-isolated Bus Converter Modules (“NBMs”), manufactured by infringing competitors, practice the asserted patents.
Chief Executive Officer, Dr. Patrizio Vinciarelli, stated: “PTAB decisions, denying all of Delta’s IPRs, debunk expert opinions proffered in Delta’s ill-conceived, failed attempts to invalidate Vicor patents. As the dominoes fall, implausible defenses at the PTAB and the ITC have left respondents with the imminent prospect of an exclusion order affecting Delta and its customers, a necessary remedy against infringement of intellectual property invented by Vicor and practiced by Vicor’s pioneering NBM power converter modules.”
Recent PTAB decisions come in the wake of an earlier judicial ruling against three Foxconn subsidiaries who are also respondents in the ITC investigation. On January 19, 2024, the United States District Court for the District of Massachusetts issued a temporary restraining order precluding those subsidiaries from pursuing arbitration against Vicor in China. The Foxconn subsidiaries unsuccessfully sought to obtain a ruling from a Chinese arbitration panel that boilerplate fine print in certain of their purchase orders for NBMs entitled them to unlimited royalty-free licenses to Vicor patents.
“This attempt by Foxconn to seize the IP of a U.S. company is the kind of abusive and unfair business practice that is catching the attention of U.S. lawmakers concerned about misappropriation of U.S. intellectual property,” commented Dr. Vinciarelli.
For more information on Vicor, please visit the Company’s website at vicorpower.com.
About Vicor
Vicor Corporation designs, develops, manufactures and markets modular power components and complete power systems based upon a portfolio of patented technologies. Headquartered in Andover, Massachusetts, Vicor sells its products to the power systems market, including enterprise and high-performance computing, industrial equipment and automation, telecommunications and network infrastructure, vehicles and transportation, aerospace and defense. www.vicorpower.com
Vicor is a registered trademark of Vicor Corporation.
Contact
James F. Schmidt
Chief Financial Officer
978-470-2900
invrel@vicorpower.com
A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/a88b6499-3496-4d78-80ff-a64ce97f4745
FAQ
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