Triple penalty for Marvell Technology Group Ltd. (NASDAQ:MRVL) for patent infringement

Marvell Technology Group Ltd.(NASDAQ:MRVL) was ordered to pay a penalty worth $1.17 billion by the United States Jury. The penalty might get three times the amount and is imposed due to Marvell Technology Group Ltd.(NASDAQ:MRVL) infringement over patents regarding integrated circuit technology originally held by Carnegie Mellon University. Marvell Technology Group Ltd.(NASDAQ:MRVL) specialized in making chips for computers as well as for mobile phones. The company’s stock fell to $7.40 after a loss of ten percent or eighty five cents in the NASDAQ Market, soon after the verdict came out yesterday in Pittsburgh’s federal court.

K & L Gates LLP, representing Carnegie University made a statement, according to which the U.S. District Judge named Nora Barry Fischer found Marvell Technology Group Ltd.(NASDAQ:MRVL) guilty and decided to triple the penalty amount. Investors are concerned about the impending tripled penalty amount, revealed in an email received from the President of Stadtler Capital Management based in Fort Worth in Texas, Kevin Stadtler, who holds a position at Marvell. He further said that this tripled penalty will result in an increase in the capital during issuing shares..Daniel Yoo who works in Hamilton, Bermuda based Marvell Technology Group Ltd.(NASDAQ:MRVL) did not respond when contacted several times on the telephone and his email for comments on the matter.

Carnegie Melton University sued Marvell Technology Group Ltd.(NASDAQ:MRVL) mainly for using two of its patents, issued in the year 2001 and 2002. The patents describe the ways to detect the data that is stored on the hard disk drive of a computer by filtering out noise and unwanted electrical signals. A complaint was lodged by the university on March 6, which says that Marvell Technology Group Ltd.(NASDAQ:MRVL) nine types of circuits are based on the inventions discussed in the patents. Ken Walters, on the behalf of University quoted: “We are gratified by the jury’s unanimous verdict”. He further added: “This case deals with fundamental technology for increasing the accuracy with which hard-disk drive circuits read data from high-speed magnetic disks”.

The shares of Marvell Technology Group Ltd.(NASDAQ:MRVL) is down by 0.85.% to close at $7.40

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Published by Viraj Shah

Viraj Shah has done M.Com (Finance) and currently pursuing CFP. He is a technical analyst who tracks US markets along with other global markets like India very closely. He is very passionate about stocks and believes that money can always be made in market.

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