USITC Launches Patent Probe into Vertical Power Delivery Systems Following Vicor Complaint
The U.S. International Trade Commission voted to begin an investigation into Vertical Power Delivery systems and computing equipment containing them. The probe follows a patent infringement complaint filed by Vicor Corporation (VICR), which alleges that imported power delivery components violate its patented technology. Vicor Corporation has requested a limited exclusion order and cease-and-desist orders to stop unauthorized imports into the United States.
The trade investigation names nine major suppliers and manufacturers, including Delta Electronics, Inc., Infineon Technologies AG, Monolithic Power Systems, Inc., Flex Ltd., Celestica Inc., Quanta Computer Inc., Hon Hai Precision Industry Co. Ltd., Luxshare Precision Industry Co., Ltd., and Ingrasys Technology Inc. Computer manufacturers and hyperscale cloud providers sourcing these components will need licenses from Vicor Corporation to import non-compliant systems, with royalty rates escalating as legal proceedings advance.
Market participants will be watching the USITC decision as the case progresses, as an exclusion order could alter supply chains and boost patent licensing revenue for Vicor Corporation. Following the news, Vicor Corporation shares rose 1.43% to $266.10.
Key points
- The USITC instituted an investigation into Vertical Power Delivery systems based on a patent complaint by Vicor Corporation.
- Vicor Corporation requested a Limited Exclusion Order and cease-and-desist orders to block infringing imports.
- Named respondents include Delta Electronics, Infineon Technologies, Monolithic Power Systems, Flex, Celestica, Quanta, Foxconn, Luxshare, and Ingrasys.
- Computer makers and hyperscalers using respondents' VPD components will require a license from Vicor to import systems into the U.S.
- Shares of Vicor Corporation (VICR) increased 1.43% to $266.10 following the announcement.
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How we writeDisclaimerQuestions and answers
Why is the USITC investigating Vertical Power Delivery systems?
The USITC opened an investigation after Vicor Corporation filed a complaint alleging that imported power delivery components infringe its patented technology.
Which companies are named in the Vicor patent investigation?
Respondents named by the USITC include Delta Electronics, Infineon Technologies, Monolithic Power Systems, Flex, Celestica, Quanta Computer, Foxconn, Luxshare Precision, and Ingrasys Technology.
What action has Vicor requested from trade regulators?
Vicor Corporation requested that the USITC issue a Limited Exclusion Order and cease-and-desist orders to prevent infringing computing systems from being imported into the United States.