U.S. Patent Office Issues Final Rejections of Power Integrations Patent Claims Asserted Against Fairchild Semiconductor

SAN JOSE, Calif.—(BUSINESS WIRE)—December 11, 2008— Fairchild Semiconductor (NYSE: FCS):

  • 12 of 14 re-examined claims from two patents received final rejections
  • All but one claim from the two patents that were tried to jury in 2004 lawsuit received final rejections

Fairchild Semiconductor (NYSE: FCS) announced that the U.S. Patent and Trademark Office issued final rejections of patent claims from two of three unexpired Power Integrations patents involved in the four-year-old patent lawsuit between the two companies.

The final rejections were issued following the re-examination of two Power Integrations U.S. patents: No. 6,107,851 and No. 6,249,876.

In addition to the 2004 lawsuit, the ’851 and ’876 Power Integrations patents also are being asserted against Fairchild in another lawsuit filed by Power Integrations earlier this year. The majority of the claims from these two patents asserted in the 2008 lawsuit have now received final rejections. Fairchild is also suing Power Integrations on three Fairchild patents.

Fairchild Semiconductor said it was not surprised by the Patent Office actions, which it said helped validate its position that Fairchild does not infringe valid claims of Power Integrations’ patents. The company said it was analyzing the Patent Office actions to determine their impact on the lawsuits, and that it will continue to vigorously contest the litigation with Power Integrations, including on appeal if necessary.

As to the third unexpired patent involved in the 2004 lawsuit (U.S. patent No. 6,229,366), it is also being re-examined by the Patent Office. For the second time, the Patent Office issued preliminary rejections of all claims asserted by Power Integrations. The fourth patent involved in the 2004 litigation has expired.

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 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, Fairchild’s ability to prevail in pending post-trial motions and possibly on appeal, 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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