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VIA Technologies announced on Sunday that the English Court of Appeal ruled today on a key aspect of the legal dispute between Intel Corporation and VIA.

The legal war arose when Intel issued proceedings in 2001 alleging that VIA chipset and processor products infringed five Intel patents. VIA alleged as one part of its defence to those proceedings that Intel was and is acting anti-competitively in the chipset and processor markets, and so was not entitled to enforce its patents against VIA. In April of this year, Intel applied to the English High Court for summary dismissal of VIA's competition law based defence on a summary basis and was successful. VIA subsequently appealed that decision to the Court of Appeal, which has today rendered its verdict.

The Court of Appeal has upheld VIA's appeal in its entirety, overturning almost all of Mr. Justice Lawrence Collins' decision at first instance. The Court of Appeal therefore concluded that the allegations of anticompetitive conduct against Intel should proceed to trial. Under the terms of the order agreed following the judgment, Intel will pay the entirety of VIA's legal costs for both the High Court and Court of Appeal hearings.

Earlier this year VIA also appealed to the German Court of Appeal after the Düsseldorf District Court had decided to prohibit the importation or sale of VIA chipsets that work with Intel Pentium 4 processors to Germany. VIA’s lawyers will definitely note the decision of the English High Court as a precedent on the forthcoming hearings in other countries, including Germany.

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