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Tensions Rise over Bilateral “LOT Agreement” and Assignments to Daedalus Prime

April 14, 2023

Daedalus Prime LLC has accused TSMC of infringing four former Intel patents in complaints filed before the International Trade Commission (ITC) and the Eastern District of Texas. Litigation is active before the ITC, with TSMC pursuing a license defense based on what appears to be a springing license agreement between Intel and TSMC, termed the “LOT Agreement” in certain of the parties’ papers. TSMC filed a complaint of its own, this one seeking a declaratory judgment (DJ) from the District of Delaware that would sort out whether the former Intel patents asserted against it were moved to Daedalus Prime in April 2021 (before the date of the LOT Agreement) or June 2022 (after the LOT Agreement). Both Daedalus Prime and Intel have responded to TSMC’s complaint in Delaware, while ITC discovery concerning TSMC’s license defense heats up.


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