Marvell to pay $1.2 billion

Marvell to pay $1.2 billion

Marvell to pay $1.2 billion, Marvell to pay $1.2 billion to Carnegie Mellon University after losing a patent infringement lawsuit. The enormous judgement was handed down by nine jurors on Wed., Dec. 26, 2012 in the U.S. District Court for the Western District of Pennsylvania in Pittsburgh. Following the judgement Marvell Technology Group shares plummeted more than 10%. The stock opened at 8.25 and closed at 7.40 for the day for a loss of 10.3%. The day's low was 7.19, while the day's high was 8.47.

The patent infringement lawsuit brought by Carnegie Mellon University against Marvell Technology Group and Marvell Semiconductor Inc. alleged "that at least nine types of Marvell's circuits used its inventions," reported Investors Business Daily. The jury agreed that Marvell used patents that were built upon the work of Carnegie Mellon University professor Jose Moura and former student Alek Kavcic. As a result, Marvell is to pay $1.2 billion to the university.

To be specific, Marvell must pay a whopping $1,169,140,271 to Carnegie Mellon University for patent infringement. The Pittsburgh Post-Gazette reported, "The finding of willful violation of a patent could multiply that figure by as much as three times if U.S. District Judge Nora Barry Fischer opts for that remedy."

The law firm of K&L Gates represented Carnegie Mellon University. Attorney Kevin P. Johnson, of Quinn Emanuel Urquhart & Sullivan LLP led the defense team for Marvell.