Susman Godfrey Secures ITC Ruling Banning Importation of Power Modules and Unlicensed Computing Systems Infringing Vicor Patents

Susman Godfrey  LLP, with co-counsel Polsinelli, secured a favorable ruling on behalf of power systems manufacturer Vicor before the U.S. International Trade Commission (ITC) banning the importation of power modules and unlicensed computing systems found to infringe Vicor’s patents.

The ITC’s Final Determination, issued on February 13, found that U.S. Patent Nos. 9,516,761 (“’761 patent”) and 9,166,481 (“’481 patent”) are valid and infringed. The ITC issued a Limited Exclusion Order against all Respondents, including power modules manufacturers Delta Electronics and Cyntec, and contract manufacturers Foxconn, Ingrasys and Quanta. The ITC also issued Cease and Desist Orders against specific Respondents entities, including Delta Electronics (Americas) Ltd., Quanta Computer USA Inc. and Quanta Computer Inc., and FII USA Inc.

A mandatory 60-day presidential review follows the ITC’s ruling, under which respondents must post a bond should the companies import infringing power modules and computing systems. 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 unlicensed computing systems into the country.

In addition to precluding importation of infringing modules and computing systems, Vicor is also seeking monetary damages for willful infringement of the patents in a parallel lawsuit in the Eastern District of Texas.

“We are pleased with the ITC’s finding upholding Vicor’s patents on critical technology and protecting Vicor’s U.S. investments into innovation and domestic manufacturing from foreign infringers,” said Oleg Elkhunovich, partner with Susman Godfrey and lead trial counsel for Vicor. “We look forward to pursuing monetary damages for Respondents’ willful infringement in district court litigation and continuing to assist Vicor in enforcing its comprehensive portfolio of power component and power system technology patents.”

The Final Determination also reversed a prior finding that Foxconn Respondents did not have a license to Vicor’s patents, and instead found that two Foxconn affiliates—FII USA, Inc. and Ingrasys Technology, Inc.—have a license to the ’761 patent. “Vicor will appeal it,” said Genevieve Vose Wallace, partner with Susman Godfrey also representing Vicor, regarding this finding. “Tellingly, AI companies and hyperscalers, whose computing hardware is increasingly dependent on high density power system solutions pioneered and patented by Vicor, are taking a license to Vicor’s patents to avoid the risk of billions of dollars of computing hardware being stranded because of its infringing power system.”

Representing Vicor with Oleg and Genevieve are Susman Godfrey Partners Steve Seigel and Ari Ruben, Associates Danielle Nicholson and Dinis Cheian, and Of Counsel Corey Lipschutz. Louis S. Mastriani and Daniel Smith at Polsinelli are co-counsel. The case is In the Matter of Certain Power Converter Modules and Computing Systems Containing the Same, investigation number 337-TA-1370.