Vicor Corporation emphasizes its IP licensing for high-density power systems, addressing patent infringement and boosting revenue from key markets.
Quiver AI Summary
Vicor Corporation has emphasized the importance of its intellectual property (IP) in high-density power system technology, particularly as it relates to growing markets like AI. The company pointed out that licensed access to their foundational IP is essential to maintain supply chain resilience and scalability, as currently, without such licenses, firms in computing, automotive, and industrial sectors face risks of importation bans due to patent infringements. In 2025, the International Trade Commission issued a Limited Exclusion Order banning certain infringing bus converters, which has subsequently led to licensing agreements generating nearly $300 million for Vicor through 2026. The company is now intensifying its IP licensing initiatives under the leadership of General Counsel Andrew D’Amico, reflecting a strategy to position licensing as a key growth driver. CEO Patrizio Vinciarelli noted that licensing revenues have exceeded R&D investments, showcasing a significant distinction in business models focused on innovation versus those that copy. Vicor is pursuing further actions against infringing manufacturers and highlighting that original equipment manufacturers (OEMs) and hyperscalers may need updated or expanded licenses.
Potential Positives
- Vicor's licensing agreements and settlements stemming from the International Trade Commission's Limited Exclusion Order are anticipated to contribute nearly $300 million to the company's revenues through 2026, indicating strong financial growth potential.
- The success of Vicor's licensing practice has led to quarterly revenues surpassing the company's investment in R&D, demonstrating effective monetization of its intellectual property and commitment to innovation.
- Vicor's patent protection and licensing strategy are crucial for supply chain resilience and scalability, particularly in high-growth markets like AI, positioning the company for substantial growth opportunities.
Potential Negatives
- Vicor's reliance on licensing revenues highlights potential vulnerabilities in its core business model, as it indicates that a significant portion of expected income is dependent on external parties' compliance with licensing agreements.
- The ongoing enforcement of the Limited Exclusion Order (LEO) signals challenges in the market, creating an atmosphere of caution among potential partners and customers who may fear being affected by similar legal issues.
- There is a risk of reputational damage associated with the aggressive enforcement of IP rights, which may alienate potential clients who view the company as litigious.
FAQ
What is Vicor Corporation's focus in high-density power systems?
Vicor Corporation focuses on developing high-density power system technology for high-growth markets, including AI and computing.
What is the significance of Vicor's Intellectual Property?
Vicor's Intellectual Property is crucial for ensuring supply chain resilience and scalability, preventing importation bans on their technologies.
What does the Limited Exclusion Order (LEO) entail?
The LEO bans the importation of infringing bus converters and computing systems in the US, protecting Vicor's patented technologies.
How has licensing impacted Vicor's revenue?
Vicor's licensing agreements have resulted in nearly $300 million in expected revenue contributions through 2026, establishing licensing as a growth pillar.
Who leads Vicor's intellectual property licensing efforts?
Andrew D’Amico, the General Counsel for Intellectual Property, leads Vicor's licensing efforts, supported by an in-house team and external counsel.
Disclaimer: This is an AI-generated summary of a press release distributed by GlobeNewswire. The model used to summarize this release may make mistakes. See the full release here.
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Full Release
ANDOVER, Mass., Oct. 20, 2025 (GLOBE NEWSWIRE) -- Vicor Corporation (NASDAQ: VICR) Intellectual Property (IP) stemming from Vicor’s development of high-density power system technology is key to performance in high growth markets such as AI. Licensed access to foundational IP, including to 800V, 48V and 12V bus converters and Vertical Power Delivery (VPD), is necessary to ensure supply chain resilience and scalability. Without a license, computing, automotive and industrial systems are subject to importation bans or injunctions because of patent infringement by copycat power module makers and contract manufacturers.
In 2025 the International Trade Commission issued a Limited Exclusion Order (LEO) banning importation into the US of infringing bus converters, and computing systems containing the same, covered by certain Vicor patents. The LEO remains in force for the life of infringed patents and applies to all infringing computing systems made by contract manufacturers which, as Respondents in the ITC investigation, were found to infringe. The LEO has led to settlements and licensing agreements by leading OEMs and hyper-scalers resulting in nearly $300 million in expected contribution to Vicor’s revenues through 2026.
Having established licensing as a pillar for growth, Vicor is stepping up its IP licensing practice, headed by Andrew D’Amico, General Counsel for Intellectual Property and supported by Vicor’s in-house licensing team and outside counsel, including law firms partnering with Vicor to assert its IP.
Commenting on the success of Vicor’s licensing practice, Chief Executive Officer Patrizio Vinciarelli stated: “Q3 licensing revenues surpassed Vicor’s quarterly investment in R&D. At 18% of revenues, Vicor’s R&D far exceeds the R&D percentage of revenues of infringing power module makers and contract manufacturers, reflecting differences between antithetical business models respectively focused on innovation and copying.
As high-density power systems pioneered by Vicor, including bus converters and VPD, are on the critical path to high performance computing, Vicor’s IP licensing practice may grow to a greater fraction of Vicor’s module business. Leveraging its first ChiP™ foundry and the high current density of 5 th generation ChiPs and 2 nd Generation VPD, Vicor’s module business is also expected to grow substantially apart from and as a result of its related IP licensing practice. OEMs and hyperscalers need a license, need to renew their license or need to expand its scope. Vicor is pursuing additional actions to curtail access to infringing computing systems sourced from infringing contract manufacturers relying on infringing power module makers.”
For further information contact:
Andrew D’Amico, General Counsel, Intellectual Property
Office: (978) 749-3230
Email:
[email protected]
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.
