Ever wondered how the size of modern devices has been shrinking at such a rapid pace? From sluggish brick-sized phones to palm-sized smartphones, we have come a long way – thanks to the ever-evolving semiconductor technology that forms the core of these devices. It is a direct manifestation of Moore’s law, an observation made by Gordon Moore that the number of transistors on a microchip will double every year.

Semiconductors are vital for driving performance and functionalities in all modern devices that have become integral to our society. The rapid evolution of the semiconductor industry coupled with the fierce competition among market players vying for a larger market share has led to an inevitable surge in patent filings. The increase has led to a growing number of intellectual property (IP) conflicts and patent litigations.

Figure 1 – Number of patent filing in Semiconductor domain globally.
Data Source: https://www.mathys-squire.com/insights-and-events/news/semiconductor-patents-rise-by-59-in-five-years-to-reach-to-record-high/

Infringement detection remains the most difficult subject in semiconductor IP litigations due to the small size of semiconductor devices. The most effective way of identifying infringement within semiconductors lies in understanding the fundamentals of semiconductor device manufacturing.

Semiconductor IP Industry Unveiled: A Pragmatic Overview

The relentless pursuit of miniaturization, enhanced efficiency, and greater performance has propelled the semiconductor industries to unprecedented heights. As demand for smaller, faster, more energy-efficient electronic devices grows, so does the significance of protecting and monetizing the intellectual property within them. In a landscape driven by innovation and technological advancements, safeguarding IP rights has become a paramount concern for both established players and newcomers in the semiconductor domain.

Recent years have witnessed an exponential surge in patent litigations within the semiconductor industry both globally and within the US, driven by safeguarding intellectual property rights as well as maintaining a competitive edge. This steep increase in semiconductor litigation can also be attributed to Non-Practicing Entities(NPEs).

Figure 2 – Number of patent litigations filed in Semiconductor domain in the US Data Source:

https://www.managingip.com/article/2bbiyswqrorclbhuecveo/lot-network-aims-to-snag-group-of-semiconductor-firms

The only downtick observed in the last six years was in 2021, which could be a result of the Covid-19 slowdown.

With the Chips and Science Act passed by the US Congress, $280 billion has been injected into the semiconductor market, which will likely fuel research activity and increase patent filings, potentially resulting in more patent litigations.

Amidst the expected surge in patent litigations, protecting Semiconductor IP becomes increasingly crucial in driving technological progress and stimulating innovation. However, one of the key factors that hinders the monetization of semiconductor patents lies in the difficulty in determining whether infringement has occurred.

Before delving into ways to detect infringement in Semiconductor IP litigations, let’s take a quick look at the steps involved in manufacturing a semiconductor device.

Infringement detection remains the most difficult subject in semiconductor IP litigations due to the small size of the devices. The most effective way to identify infringement within semiconductors lies in understanding the fundamentals of manufacturing them. In the article, Decoding Semiconductor IP Battles, IP expert Chetan Chalotra dives into the essentials of evidence for high-tech patent litigations. Read the piece for more on the role of schematics and layouts in semiconductor IP legal battles.