News

In a breach of warranty case arising from alleged patent infringement in the semiconductor industry, a California Superior Court jury found Analysis Group client Novellus Systems not liable for a claimed $197 million in damages asserted by plaintiff Linear Technology Corporation. Linear had settled an earlier case in which semiconductor competitor Texas Instruments (TI) accused Linear of patent infringement in connection with the process by which Linear manufactured its integrated circuits. Following the TI settlement, Linear sued certain of its tool manufacturers, including Novellus, claiming that the tools were the source of the infringement asserted by TI.

Novellus counsel Irell & Manella retained Analysis Group to assess damages in the case. Managing Principal Jeffrey H. Kinrich, working with Associate Peter Rybolt, provided deposition and trial testimony rebutting the damages figure asserted by Linear’s expert. Mr. Kinrich examined Linear’s public filings for contemporaneous disclosure of the expected losses claimed by Linear and performed financial statement and competitive market analyses to determine whether Linear’s sales had been affected to the extent claimed. Also at issue was the valuation of Linear’s settlement with TI. Mr. Kinrich argued that the available evidence did not support Linear’s valuation of its damages, and that Novellus’s liability was limited to at most $1.2 million to $2 million. The jury found unanimously for Novellus on liability and did not reach the issue of damages.