Intel faces German sales ban after patent ruling By Investing.com

PALO ALTO, Calif. – R2 Semiconductor, a California-based technology firm, has won a significant legal battle against Intel Corp (NASDAQ: NASDAQ:) over a patent infringement issue. The Düsseldorf Regional Court in Germany ruled that Intel’s server chip technology infringes on R2’s European patent related to integrated voltage regulation. The court has issued an injunction that prevents Intel, along with its customers Dell (NYSE:), HP (NYSE:), and HPE, from selling, importing, or manufacturing the infringing chips in Germany.

The technology in question is crucial to Intel’s server business, which generated roughly half of the company’s $63.6 billion revenue in 2022. The court’s decision could have a substantial impact on Intel’s operations, particularly with its plans to invest over 30 billion euros in a new chip manufacturing site in Magdeburg, Germany.

Intel has appealed the decision, but German courts typically do not stay injunctions during the appeal process. This means the ban could remain in effect until at least 2025. Additionally, Intel is challenging the patent’s validity in the German Patent Court, with a final decision expected later this year. However, preliminary opinions from the court suggest that the patent is valid.

The scope of the injunction is broad, covering any Intel chips with similar technology, not just the four chip families initially discussed. Intel and its partners are required to provide R2 with a list of all processors that may infringe on the patent, which could include newer generations like the 13th and 14th (e.g., Raptor Lake).

R2 Semiconductor, which has been in operation for 15 years, emphasizes that it is not a “patent troll” but rather a company that actively develops its technology and works with leading tech companies. The dispute with Intel dates back to 2015 when negotiations for an investment by Intel in R2 were terminated by Intel.

The information reported is based on a press release statement from R2 Semiconductor.

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