ITC bars importation of power modules and unlicensed computing systems that infringe Vicor patents

Rhea-AI Summary

Vicor (NASDAQ: VICR) has secured a significant legal victory as the International Trade Commission (ITC) issued a Final Determination confirming the validity of Vicor's patents (9,516,761 and 9,166,481) and their infringement. The ITC has ordered a ban on importing unlicensed computing systems containing infringing power modules into the United States.

The ITC issued a Exclusion Order against all Respondents and Cease and Desist Orders against Delta Electronics, Quanta Computer, FII USA, and Ingrasys Technology USA. During a 60-day presidential review period, Respondents may import infringing products by posting a 100% value bond. The determination found that two Foxconn affiliates have a license to the '761 patent, which Vicor plans to appeal.

Some OEM and non-OEM customers have already taken licenses to avoid import restrictions. Vicor is pursuing additional legal action, including a trial in Texas seeking monetary damages for willful infringement.

Positive

• ITC confirms validity of Vicor's patents and their infringement
• Import ban imposed on unlicensed computing systems with infringing power modules
• 100% value bond required for imports during review period
• Some customers have already taken licenses to avoid restrictions
• Additional monetary damages being pursued through separate legal action

Negative

• Two Foxconn affiliates found to have license to '761 patent, requiring appeal
• 60-day presidential review period delays immediate enforcement

Insights

Legal and IP Expert

The ITC's ruling marks a pivotal enforcement of Vicor's intellectual property rights in the power module market, particularly significant given the explosive growth in AI and high-performance computing infrastructure. The implementation of both Exclusion Orders and Cease and Desist Orders creates a robust protective barrier for Vicor's technology, effectively forcing competitors to either obtain licenses or face exclusion from the U.S. market.

The 100% bond requirement during the presidential review period is particularly stringent, essentially doubling the cost of importing potentially infringing systems. This creates immediate financial pressure on competitors and their customers, likely accelerating licensing discussions. The fact that some OEM and non-OEM customers have already secured licenses indicates the ruling's immediate market impact and validates Vicor's IP monetization strategy.

While the Foxconn affiliates' licensing determination through purchase order clauses represents a partial setback, Vicor's planned appeal and the upcoming Eastern District of Texas trial for monetary damages suggest a comprehensive legal strategy to maximize IP value. The willful infringement claim in the Texas case could potentially result in treble damages, adding significant financial implications beyond the ITC ruling.

This ruling strengthens Vicor's competitive position in the critical power solutions market for AI and high-performance computing applications. As these sectors continue rapid expansion, the ability to exclude unlicensed competitors while monetizing IP through licensing creates a compelling business model combining technology leadership with recurring revenue potential. The market for advanced power solutions in AI infrastructure represents a substantial growth opportunity, and this ruling helps secure Vicor's position as a key technology provider.

ANDOVER, Mass., Feb. 14, 2025 (GLOBE NEWSWIRE) -- Vicor Corporation (NASDAQ: VICR) today announced that, on February 13, the International Trade Commission (“ITC”) issued a Notice of Final Determination in its Investigation No. 337-TA-1370 (“In the Matter of Certain Power Converter Modules and Computing Systems Containing the Same”), confirming that Vicor U.S. Patent Nos. 9,516,761 (“’761 patent”) and 9,166,481 (“’481 patent”) are valid and infringed, and that unlicensed computing systems containing infringing power modules should be barred from importation into the United States.

The ITC issued a Limited Exclusion Order against all Respondents and Cease and Desist Orders against Respondents Delta Electronics (Americas) Ltd., Quanta Computer USA Inc. and Quanta Computer Inc., FII USA Inc., and Ingrasys Technology USA Inc.

Following the determination, for a mandatory 60-day presidential review period, Respondents may import infringing power modules and computing systems upon posting a bond. The ITC set the bond amount for the computing systems at 100% of the system’s value. Following the expiration of the presidential review period, Respondents would be prohibited from importing infringing power modules and computing systems.

The Final Determination reversed a prior finding that Foxconn Respondents did not have a license to Vicor patents and instead found that two Foxconn affiliates—FII USA, Inc. and Ingrasys Technology, Inc.—have a license to the ’761 patent, based on boilerplate clauses in these entities’ purchase orders for Vicor components. Vicor intends to appeal this finding to the Federal Circuit.

“As expected, Respondents are now subject to exclusion and cease and desist orders, exposing their unlicensed customers to severe consequences,” stated Chief Executive Officer Dr. Patrizio Vinciarelli. “Mindful of the risk of AI and computing systems being barred from importation into the U.S., certain OEM and non-OEM customers of infringing contract manufacturers have taken licenses. We look forward to additional steps to protect Vicor IP, including a trial in the Eastern District of Texas, where Vicor seeks monetary damages for willful infringement.”

For more information on Vicor and its products, please visit the Company’s website at www.vicorpower.com.

About Vicor

Vicor Corporation designs, develops, manufactures and markets modular power components and complete power systems based upon a portfolio of patented technologies. Headquartered in Andover, Massachusetts, Vicor sells its products to the power systems market, including enterprise and high performance computing, industrial equipment and automation, telecommunications and network infrastructure, vehicles and transportation, aerospace and defense. www.vicorpower.com

Vicor is a registered trademark of Vicor Corporation.

Contact

James F. Schmidt
Chief Financial Officer
Office: (978) 470-2900
Email: invrel@vicorpower.com

FAQ

What is the impact of the ITC ruling on VICR's patent infringement case?

The ITC ruling confirms the validity of Vicor's patents and orders a ban on importing unlicensed computing systems containing infringing power modules into the US, with Cease and Desist Orders issued against several companies.

When will VICR's import ban on infringing products take effect?

The import ban will take effect after a 60-day presidential review period, during which respondents can still import products by posting a 100% value bond.

Which companies are affected by VICR's ITC Cease and Desist Orders?

The Cease and Desist Orders affect Delta Electronics (Americas) , Quanta Computer USA Inc., Quanta Computer Inc., FII USA Inc., and Ingrasys Technology USA Inc.

What legal actions is VICR pursuing beyond the ITC ruling?

Vicor is pursuing additional legal action, including a trial in the Eastern District of Texas seeking monetary damages for willful infringement, and plans to appeal the finding regarding Foxconn affiliates' license.

How are customers responding to VICR's patent enforcement?

Some OEM and non-OEM customers of infringing contract manufacturers have already taken licenses to avoid the risk of their AI and computing systems being barred from US importation.