Antitrust Law Daily Wrap Up, ANTITRUST NEWS: Fraudulent patent prosecution alleged in attempted monopolization case, (Dec 19, 2014)
Organizations Mentioned:KLA-Tencor Corp. | Xitronix Corp.
By Greg Hammond, J.D.
Xitronix Corp. filed an antitrust suit in the federal district court in Austin, Texas, against KLA-Tencor Corp. on December 17, alleging that KLA fraudulently prosecuted certain patent claims that were previously found to be invalid. KLA’s actions were purportedly an attempt to monopolize the market for active dopant metrology systems (Xitronix Corp. v. KLA-Tencor Corp., Case No. 1:14-CV-1113).
KLA, according to the complaint, is the largest supplier of equipment to the market for optical inspection of semiconductor wafers, controlling an approximate 80 percent of the market. The company is the assignee of the ‘260 patent, which is a continuation of the ‘441 patent that was previously held invalid on indefiniteness grounds.
Xitronix alleges that it competes with KLA, and that it is ready, willing, and able to produce a superior product on a commercial level, but KLA has engaged in exclusionary conduct by fraudulently prosecuting to issuance the ‘260 patent, targeting Xitronix. Specifically, Xitronix asserts that KLA failed to explain to the examiner how the final judgment regarding the ‘441 patent related to the pending claims of the ‘260 patent, and KLA did nothing to inform the patent examiner that pending claims were unpatentable for the same or substantively identical reasons the claims of the ‘441 patents were deemed invalid. According to Xitronix, the claims of the ‘260 patent would not have issued but for the intentional and willful misrepresentations and omissions made by KLA’s patent prosecution attorney.
As a result of KLA’s conduct, Xitronix asserts that: (1) KLA has a dangerous probability of achieving monopoly power in the active dopant metrology market; (2) KLA has artificially and illegitimately interfered with Xitronix; (3) KLA has injured the active dopant metrology market and competition; and (4) KLA has caused damage to consumers of semiconductor electronic products worldwide.
Xitronix is seeking recovery of $19.1 million in loss of income, $22.9 million in future loss of income, treble damages, attorney fees and costs, and pre- and post-judgment interest at the highest rate allowed.
Companies: Xitronix Corp.; KLA-Tencor Corp.
News: Antitrust TexasNews