VCV Vicor Corp

Vicor patents asserted against infringing NBMs withstand validity challenges
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. SchmidtChief Financial Officer978-470-2900invrel@vicorpower.com

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