Vicor Corporation announces ITC ruling affirming patent validity and imposing import restrictions on infringing power modules and systems.
Quiver AI Summary
Vicor Corporation announced on February 13, 2025, that the International Trade Commission (ITC) confirmed the validity and infringement of its U.S. Patents 9,516,761 and 9,166,481 in a recent investigation. As a result, the ITC issued a Limited Exclusion Order prohibiting the importation of unlicensed computing systems containing infringing power modules into the United States. Additionally, cease and desist orders were placed against several companies, including Delta Electronics and Quanta Computer entities. While a mandatory 60-day review period will allow the respondents to import infringing products upon posting a bond, after this period, imports would be banned. The ITC's decision reversed an earlier ruling concerning the licensing status of Foxconn affiliates, which Vicor plans to appeal. CEO Dr. Patrizio Vinciarelli noted that the ruling may encourage customers of infringing manufacturers to take licenses to avoid potential repercussions. Vicor continues to pursue legal actions to protect its intellectual property.
Potential Positives
- ITC confirmed the validity and infringement of Vicor's U.S. patents, reinforcing the company's intellectual property rights.
- The issuance of Limited Exclusion Orders and Cease and Desist Orders could significantly limit competitors' ability to import infringing products into the U.S.
- Increased licensing activity from OEM and non-OEM customers suggests a strategic shift that may enhance revenue streams for Vicor.
Potential Negatives
- The ITC's reversal on the licensing status of certain Foxconn affiliates could cast doubt on Vicor's prior assertions about its patent enforcement, potentially undermining its credibility.
- The ongoing appeal to the Federal Circuit may indicate prolonged legal uncertainty, which could affect the company's market position and confidence among stakeholders.
- The 60-day presidential review period allows infringing products to be imported under bond, potentially leading to continued competition during this time and revealing vulnerabilities in Vicor's market control.
FAQ
What was the ITC's decision regarding Vicor's patents?
The ITC confirmed that Vicor's U.S. Patent Nos. 9,516,761 and 9,166,481 are valid and infringed.
Who are the respondents affected by the ITC's ruling?
The respondents include Delta Electronics, Quanta Computer USA, Quanta Computer Inc., FII USA, and Ingrasys Technology USA.
What is the outcome for unlicensed computing systems?
Unlicensed computing systems containing infringing power modules are barred from importation into the United States.
What does the mandatory 60-day presidential review period entail?
It allows respondents to post a bond and continue importing infringing products during the review period.
What legal actions does Vicor plan to pursue following the ITC ruling?
Vicor intends to appeal the ruling regarding Foxconn affiliates and may pursue monetary damages in court.
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., Feb. 14, 2025 (GLOBE NEWSWIRE) -- Vicor Corporation (NASDAQ: VICR) today announced that, on February 13, the International Trade Commission (“ITC”) issued a Notice of Final Determination in its Investigation No. 337-TA-1370 (“In the Matter of Certain Power Converter Modules and Computing Systems Containing the Same”), confirming that Vicor U.S. Patent Nos. 9,516,761 (“’761 patent”) and 9,166,481 (“’481 patent”) are valid and infringed, and that unlicensed computing systems containing infringing power modules should be barred from importation into the United States.
The ITC issued a Limited Exclusion Order against all Respondents and Cease and Desist Orders against Respondents Delta Electronics (Americas) Ltd., Quanta Computer USA Inc. and Quanta Computer Inc., FII USA Inc., and Ingrasys Technology USA Inc.
Following the determination, for a mandatory 60-day presidential review period, Respondents may import infringing power modules and computing systems upon posting a bond. The ITC set the bond amount for the computing systems at 100% of the system’s value. Following the expiration of the presidential review period, Respondents would be prohibited from importing infringing power modules and computing systems.
The Final Determination reversed a prior finding that Foxconn Respondents did not have a license to Vicor patents and instead found that two Foxconn affiliates—FII USA, Inc. and Ingrasys Technology, Inc.—have a license to the ’761 patent, based on boilerplate clauses in these entities’ purchase orders for Vicor components. Vicor intends to appeal this finding to the Federal Circuit.
“As expected, Respondents are now subject to exclusion and cease and desist orders, exposing their unlicensed customers to severe consequences,” stated Chief Executive Officer Dr. Patrizio Vinciarelli. “Mindful of the risk of AI and computing systems being barred from importation into the U.S., certain OEM and non-OEM customers of infringing contract manufacturers have taken licenses. We look forward to additional steps to protect Vicor IP, including a trial in the Eastern District of Texas, where Vicor seeks monetary damages for willful infringement.”
For more information on Vicor and its products, please visit the Company’s website at www.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
Office: (978) 470-2900
Email: [email protected]
