Fairchild (FCS) Announces Court Dismisses Patent Infringement Suit by Power Integrations (POWI)
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Fairchild Semiconductor (NYSE: FCS) announced that a federal court in San Francisco has dismissed a patent infringement lawsuit by Power Integrations, Inc. (Nasdaq: POWI) against Fairchild subsidiary System General Corporation. The dismissal follows actions by the U.S. Patent and Trademark Office rejecting all of the claims of all Power Integrations patents asserted in the case. All asserted patents are undergoing reexamination proceedings.
The lawsuit was filed in 2004 in the United States District Court for the Northern District of California. While the lawsuit was pending, Power Integrations obtained an exclusion order from the U.S. International Trade Commission (ITC), based on two of the four patents involved in the lawsuit, barring some System General products from importation into the United States. (Power Integrations withdrew the other two patents during the ITC proceedings, but had not withdrawn them from the lawsuit.) Because of the ITC order, the affected products were withdrawn from the market and replaced with alternative products not affected by the order. Depending on the outcome of the Patent Office reexamination proceedings, which are continuing, Fairchild may address the ITC order at a later time.
Fairchild acquired System General in 2007, after the ITC order was issued and while the lawsuit was pending.
Late last week, Power Integrations filed a new complaint against Fairchild Semiconductor and System General in the Delaware court, asserting two of the same patents whose previously asserted claims have been rejected by the Patent Office, as well as a third patent, alleging unspecified damages as a result of alleged infringement by unspecified Fairchild and System General pulse-width modulation integrated circuit products, and demanding a permanent injunction and other relief.[SM]
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