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Power Integrations Announces Postponement of Patent-Validity Trial
Friday, June 01, 2007
San Jose, CA -- Power Integrations (Pink Sheets:POWI) announced today that the patent-validity trial in its lawsuit against Fairchild Semiconductor, previously scheduled to begin on June 4, 2007, has been postponed. The company expects a new trial date to be set shortly; the judge overseeing the case has ordered a continuance of between one and eight weeks.
Power Integrations' lawsuit, filed in October 2004 in the U.S. District Court for the District of Delaware, states that certain Fairchild power-conversion products infringe Power Integrations patents 4,811,075; 6,107,851; 6,229,366; and 6,249,876. In October 2006, a jury found that Fairchild has willfully infringed each of the four asserted patents, and awarded damages of approximately $34 million. The second trial will address Fairchild's challenges to the validity of the infringed Power Integrations patents. The patents are presumed to be valid, and Fairchild cannot prevail unless it proves the patents are invalid by clear and convincing evidence. Should Fairchild be unable to prove the patents invalid, Power Integrations intends to seek an injunction against the continued manufacture, importation and sale of the infringing parts, as well as enhancement of the damage award based on the finding of willful infringement.
"A jury has found that Fairchild is willfully infringing four of our patents, and we expect the validity of those patents to be upheld in the pending trial," said Balu Balakrishnan, president and CEO of Power Integrations. "We do not believe that this continuance will have any impact on the strength of our case."
About Power Integrations
Power Integrations, Inc. is the leading supplier of high-voltage analog integrated circuits used in power conversion. The company's breakthrough technology enables compact, energy-efficient power supplies in a wide range of electronic products, in both AC-DC and DC-DC applications. The company's EcoSmart energy-efficiency technology, which dramatically reduces energy waste, has saved consumers and businesses around the world more than an estimated $2.2 billion on their electricity bills since its introduction in 1998. For more information, visit the company's website at www.powerint.com.
Note Regarding Forward-Looking Statements
This press release contains forward-looking statements reflecting company management's current expectations regarding the outcome of its lawsuit against Fairchild Semiconductor. These statements are based on current information that is subject to change. Forward-looking statements are denoted by the use of such words and phrases as "expect," "believe" and other words and phrases that look toward future events or performance. Due to risks and uncertainties associated with patent litigation, actual results could differ materially from those expressed by management's forward-looking statements. These risks and uncertainties include but are not limited to uncertainty regarding when the new trial will occur, the impact of the continuance on our case, the validity of the company's patents, the unpredictable nature of jury trials, decisions by the judge that could influence the outcome of the suit, the company's ability to obtain an injunction in the event that Fairchild is unable to prove the company's patents to be invalid and the scope of such injunction, the fact that the judge overseeing the case has substantial discretion over the amount of enhanced damages, if any, to be paid to the company, the company's ability to collect the damages awarded in the original suit and possible enhanced damages in the current suit and that any verdict rendered in the suit could be subject to appeal. General risk factors associated with the company's business are explained in the company's most recent annual report on Form 10-K, filed with the Securities and Exchange Commission on March 8, 2007. The company is under no obligation (and expressly disclaims any obligation) to update or alter its forward-looking statements, whether as a result of new information, future events or otherwise.
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