Marvell Technology has been ordered to pay $1.2 billion for infringing on patents held by Carnegie Mellon University.
Marvell’s stock plummeted after the $1.17 billion verdict was announced, and according to Mercury News, things could get worse for the technology company. The Pennsylvania jury found that Marvell’s conduct was willful which will allow U.S. District Judge Nora Barry Fischer to increase the fine.
The patents at the center of the case deal with technology that allows data to be read more accurately on high-speed hard disk drives. The jury found that Marvell used patented technology in billions of its products without the consent of Carnegie Mellon. Investors.com reports that the school accused Marvell of using its patented technology in at least nine of the company’s inventions.
Ken Walters, a spokesman for the school, told Bloomberg: “We are gratified by the jury’s unanimous verdict. This case deals with fundamental technology for increasing the accuracy with which hard-disk drive circuits read data from high-speed magnetic disks.”
Peter J. Kalis, chairman of K&L Gates, the law firm that represented Carnegie Mellon University, added: “We take special pride in this trial victory.”
Marvell’s stock was down to near a four year low today. Shares dropped 10%, or 85 cents, to $7.40 at the end of trading.