the reporter about the stay order a TPL Attorney stated, that the parties agreed to a quiet period

Don't see that in there...

Judge Grants Stay In Microprocessor Patent Dispute

By Ron Zapata

Portfolio Media, New York (November 2, 2007)--A patent infringement lawsuit against Matsushita Electrical Industrial Co., Panasonic Corp. of North America and JVC Americas Corp. over microprocessor patents has been stayed for a month, suggesting that advanced settlement talks in the case might be under way.

Judge T. John Ward of the U.S. District Court for the Eastern District of Texas granted the joint motion for the stay on Thursday for 30 days in patent-holding company Technology Properties Ltd.'s suit which also accuses NEC Electronics America Inc. and Toshiba Corp. of infringement.

A reason for the motion was not given in court papers and attorneys involved in the case did not immediately return calls seeking comment on Friday.

Tom Rigoli, a spokesman for TPL, said he could not discuss why the stay was needed because of a confidentiality agreement between the parties. He did say, however, that the companies were continuing discussions on the claims.

TPL and its partner Patriot Scientific Corp. claim that the patents-in-suit protect fundamental technology in designing microprocessors, microcontrollers and embedded processors.

TPL is appealing a claim construction order for one of the three patents which has been thrown out of the suit. The patent-holding company had agreed to a judgment of noninfringement on the patent to ?simplify and streamline? a trial scheduled in the case for January 2008. TPL also said it stipulated to the non-infringement order so that it could immediately appeal a Markman ruling regarding the third patent.

Fujitsu Ltd., Sony Corp., NEC Corp. and some of their respective subsidiaries were also named as defendants, but reached settlements during the course of the case. However, NEC Electronics America did not settle.

The patent dispute dates back to October 2003, when Patriot filed a suit in the Northern District of California against the group, alleging infringement of three patents that cover high-performance microprocessors with variable speed system clocks and the fundamental techniques for designing them.

The patents were originally issued to Patriot, but TPL claimed rightful ownership, insisting one of its inventors should have been named as co-inventor of the technology. The disagreement prompted Patriot to sue TPL in February 2004.

TPL offered Patriot $7.5 million for the portfolio, an offer that was declined based on Patriot's estimated worth of the portfolio at $1 billion. By June 2005 Patriot dropped its complaint against TPL and entered into an agreement to jointly control the patents.

TPL then sued the Japanese electronics makers, seeking injunctive relief and increased damages for willful infringement, in the Eastern District of Texas. TPL alleged that the patents covered microprocessors with clocks faster than 110-MHz to 120-MHz, which applies to a great number of computers in use today. While the patent describes the invention, it does not actually contain the phrases ?110-MHz? or ?120-MHz.?

?The cited infringement pertains to a wide variety of end-user products including personal computers, servers, workstations, home theater systems, digital TVs, video games, DVD Recorders/Players, mobile handsets and automotive electronics,? TPL said.

The defendants alleged that the patents were invalid due to double-patenting and that one of the patents should be barred from litigation under the doctrine of res judicata.

?A judicial declaration as to whether the claims of the patents-in-suit are invalid ? is necessary and appropriate at this time so that plaintiffs can ascertain their rights and duties with respect to designing, developing, marketing and selling their products,? NEC said.

In June Toshiba told the court it had reached a resolution with the holding company that partially dismissed it from the suit, saying its Application-specific integrated circuit (ASIC) products, including the TC200, TC220, TC240, TC260, TC280 and TC300, would no longer be part of the case.

An ASIC chip is custom-designed for a specific application. Other microprocessor chips owned by Toshiba remain part of the suit.

Since January 2006, TPL said companies such as Hewlett-Packard Co., Sony Corp., and Sharp Corp. have purchased licenses for the patents-in-suit.

The patents in question are U.S. Patent Numbers 5,809,336; 6,598,148 and 5,784,584.

Technology Properties Limited is represented by Townsend and Townsend and Crew LLP, Brown McCarroll LLP and Ireland Carroll & Kelley PC.

The case is Technology Properties Limited Inc. v. Matsushita Electrical Industrial Co. Ltd. et al., case number 05-cv-00494, in the U.S. District Court for the Eastern District of Texas.