NVIDIA has been
patent-trolled sued over patent-infringement by Xperi, parent company of Invensas Corporation and Tessera Advanced Technologies. Xperi alleges that NVIDIA violated five of its U.S. patents, bearing numbers 5,666,046; 6,232,231; 6,317,333; 6,849,946; and 7,064,005, which mainly deal with the physical and electrical innovations behind packaging of NVIDIA GPUs (mating of the die with a substrate that has a ball/pin-grid that interfaces with the PCB). NVIDIA designs the GPU die and hands over its packaging requirements to TSMC. The Taiwanese semiconductor fabrication giant oversees both the manufacturing of the GPU die, as well as its packaging. Despite this technicality, Xperi alleges that NVIDIA is responsible for the design of the overall GPU, including its package, and must answer for its wrongdoing.
Xperi is not your average back-alley
IP hoarder technology inventor. The San Francisco-based company won IP disputes with several semiconductor giants, including Samsung Electronics and Broadcom. In both cases, Xperia won settlements, making it a giant-killer given its roughly $1.2 billion-market cap. In his Q1 2019 Earnings Call, Xperi CEO Jon Kerchner stated "...Today we filed a lawsuit against NVIDIA for patent infringement. We believe that NVIDIA is using our patent semiconductor technology in certain of its CPUs and processors and we have been speaking with NVIDIA for several years about taking a patent license. We ultimately could not reach an agreement and we felt that we needed to take this action to defend our intellectual property rights. We filed the case in Delaware Federal Court asserting 5 patents."