On March 20, 2009, the Patent Office granted Fairchild's request for ex parte reexamination of U.S. Patent No. 7,110,270 and concluded that the prior art presents a "substantial new question" as to the validity of claims 6-9. Moreover, the Patent Office determined that "the record is unclear regarding the reason those claims were [originally] allowed." In May 2008 Power Integrations accused Fairchild of infringing the same claims. Fairchild has denied any infringement and asserted that the claims are invalid.
The Patent Office recently issued a number of office actions rejecting claims that Power Integrations has accused Fairchild of infringing. On December 3, 2008, the Patent Office issued a final office action rejecting claims of U.S. Patent No. 6,249,876 and the following day issued a final office action rejecting claims of U.S. Patent No. 6,107,851. In February, the Patent Office rejected Power Integrations’ attempt to amend those claims and noted that the rejected claims will be cancelled unless a timely appeal is filed. The Patent Office has also issued a second Office Action, rejecting claims of U.S. Patent No. 6,229,366.
Fairchild has always believed that Power Integrations' claims are invalid and is pleased that the Patent Office is critically reviewing them. The company hopes that the Patent Office's actions will end Power Integrations' allegations that Fairchild infringed Power Integrations' patents.
Special Note on Forward-Looking Statements:
Some of the paragraphs above contain forward-looking statements that are based on management's assumptions and expectations and that involve risk and uncertainty. All statements in this release, other than statements or characterizations of historical fact, are forward-looking statements. Forward-looking statements usually, but do not always, contain forward-looking terminology such as "we believe," "we expect," or "we anticipate," or refer to management's expectations about Fairchild's future performance. Many factors could cause actual results to differ materially from those expressed in forward-looking statements. Important factors that may cause such a difference for Fairchild Semiconductor in connection with the company's continuing patent litigation with Power Integrations include, but are not limited to, the outcome of any responses to, or appeals by, Power Integrations relating to current or future reexamination proceedings before the U.S. Patent and Trademark Office affecting the Power Integrations patents asserted in current or future lawsuits, the outcome of any appeals by Power Integrations and/or Fairchild from rulings of trial and appeals courts and Fairchild’s ability to prevail in those appeals, and the risks associated with litigation in general, including the costs and time that must be devoted to litigation, the uncertainty of litigation generally, the potential diversion of attention of management and key employees that may result from being engaged in litigation, and the possibility of adverse results. Risk factors affecting the company generally, including those related to intellectual property and litigation, are discussed in the company's quarterly and annual reports filed with the Securities and Exchange Commission (SEC) and available at the Investor Relations section of Fairchild Semiconductor's web site at investor.fairchildsemi.com, or the SEC's web site at www.sec.gov.
About Fairchild Semiconductor:
Fairchild Semiconductor (NYSE: FCS) is a global leader delivering energy-efficient power analog and power discrete solutions. Fairchild is The Power Franchise®, providing leading-edge silicon and packaging technologies, manufacturing strength and system expertise for consumer, communications, industrial, portable, computing and automotive systems. An application-driven, solution-based semiconductor supplier, Fairchild provides online design tools and design centers worldwide as part of its comprehensive Global Power ResourceSM. Please contact us on the web at www.fairchildsemi.com.
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