UPDATE 1-Intel fails to overturn $2.18 billion patent verdict, plans appeal

(Adds Intel statement)

Aug 10 (Reuters) – A U.S. judge has rejected Intel Corp’s request to set aside a jury verdict ordering the chipmaker to pay VLSI Technology LLC $2.18 billion for patent infringement.

U.S. District Judge Alan Albright in Waco, Texas, denied Intel’s motion for a new trial in a sealed order issued late Monday.

Jurors on March 2 had awarded VLSI $1.5 billion and $675 million for Intel’s respective infringement of two patents that were once owned by Dutch chipmaker NXP Semiconductors NV.

Intel said in a statement on Tuesday it was disappointed with the decision and intended to appeal. It also called for reforms to prevent “litigation investors” from using low-quality patents to extract “exorbitant” damages, saying the practice stifles innovation and hurts the economy.

In seeking a new trial, Intel said the verdict was tainted by erroneous jury instructions and evidentiary rulings, and appeared to be based on earlier Intel settlements that VLSI’s own damages expert admitted were not comparable.

Santa Clara, California-based Intel noted that the verdict was the second largest by a jury in a patent case, and that the three other largest verdicts had been vacated.

A different Waco jury ruled in Intel’s favor on April 21 in a separate patent infringement lawsuit in which VLSI had sought $3.1 billion. (Reporting by Blake Brittain and Jonathan Stempel in New York; Editing by David Holmes and Leslie Adler)

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