Fairchild Semiconductor respects the legitimate intellectual property interests of our competitors. We also believe in the ability to vigorously defend our own patents against infringement and to compete in markets where we have the right to do so.
Fairchild has profound disagreements with Power Integrations over the validity and scope of several patents that are the subject of lawsuits which began in 2004 against Fairchild and System General.
Fairchild's commitment to our customers:
We continue to support this business. Fairchild continues to innovate with new products and products that are pin compatible replacements to parts affected by the PI lawsuits. Fairchild believes in competition on the basis of Innovation, Quality and Price.
We continue to stand behind our products. Our worldwide terms and conditions of sale include industry-standard indemnification for patent infringement. For products affected by the 2004 lawsuits brought by PI, we have limited this indemnification.
On May 1, 2012 Fairchild and SG filed new patent infringement claims against Power Integrations' LinkSwitch-PH LED power conversion products. Fairchild is seeking a permanent injunction preventing the sale, manufacture or use in the U.S. of Power Integrations products alleged to infringe Fairchild patent claims. Fairchild asserts three new patents that extend the company's primary side regulation technology, already found infringed by Power Integrations in an April 27, 2012 decision, to LED power conversion technology. The company is also seeking monetary damages. The lawsuit was filed in the United States District Court for the District of Delaware.
The Fairchild-SG patents are:
On April 27, 2012, a jury in U.S. District Court for the District of Delaware found Power Integrations, Inc. infringes a Fairchild U.S. patent covering primary side regulation. Power Integrations products found to infringe include certain LinkSwitch-II and LinkSwitch-CV products. PI was found to infringe Fairchild-SG US Patent No. 7,259,972, "Primary-Side-Control Power Converter Having a Switching Controller Using Frequency Hopping and Voltage and Current Control Loops." The PI products that infringe Fairchild's patents include:
Fairchild will seek an injunction (court order) preventing further infringement. Specifically, we will seek an injunction to prevent the manufacture, sale, offer for sale or use in the United States, or the importation into the United States, of all affected parts. We are also seeking financial damages, which will be determined in a second phase of the lawsuit.
The same jury found Fairchild did not infringe two of four U.S. patents asserted by Power Integrations - US Patent No. 7,110,270 and US Patent No. 7,834,605 -- but found that Fairchild infringed two PI patents: US Patent No. 6,107,851and US Patent No 6,249,876 patent.
Fairchild filed a patent infringement lawsuit against Power Integrations, Inc. in the People's Republic of China. Fairchild is seeking a permanent injunction preventing the sale, manufacture or use in China, or the importation into China, of Power Integrations products alleged to infringe three Chinese patents, including products in the TinySwitch II, TinySwitch III, LinkSwitch II, LinkSwitch XT and TOPSwitch GX product families. The company is also seeking monetary damages. The lawsuit was filed in Suzhou Intermediate Court.
On November 4, 2009, Power Integrations filed a lawsuit against Fairchild &System General in the United States District Court, Northern District of California.
Lawsuit Against Fairchild Semiconductor
Fairchild was found to infringe certain Power Integrations patents and final Judgment was entered against Fairchild January 26, 2011. Fairchild is appealing the judgment. Of the four PI patents at issue in the case, one has now expired
As a part of the lawsuit, on May 13, 2009, the U.S. District Court for the District of Delaware issued a permanent injunction prohibiting Fairchild or its subsidiaries from making, using, selling or offering to sell in the United States, or importing into the United States, or inducing or contributing to the same by third parties, any of the products listed in the permanent injunction order. Even before that injunction went into effect, Fairchild had voluntarily withdrawn affected products from the U.S. market and has been offering replacement products since 2006.
Lawsuit and ITC Case Against System General
Power Integrations' separate lawsuit against System General, which also began in 2004, was dismissed in 2008. This dismissal followed the first reexamination office actions by the U.S. Patent Office rejecting all of the claims of all Power Integrations patents asserted in the lawsuit. In 2006, while the lawsuit was pending and before the U.S. Patent Office rejected the patents, Power Integrations obtained an exclusion order from the U.S. International Trade Commission, based on two of the four patents involved in the lawsuit. (Power Integrations withdrew the other two patents during the ITC proceedings, but had not withdrawn them from the lawsuit when it was dismissed.) The existing ITC order prevents the following System General power supply controllers from being imported into the United States:
System General no longer offers the above parts for importation or sale in the U.S. and offers replacements parts which are not affected by the ITC order. The ITC order does not affect any Fairchild Semiconductor or System General parts other than those listed above.