Shares of Patriot Scientific Corp. (PTSC) plunged as much as 65% after a federal court in San Jose, Calif., issued a claims construction ruling in an infringement dispute between its Technology Properties Ltd. LLC unit and ZTE Corp. and others that would lead to a finding of non-infringement.
Magistrate Judge Paul Grewal’s claims construction ruling construed the term “an entire oscillator disposed upon said integrated circuit substrate” as “an [oscillator] located entirely on the same semiconductor substrate as the [central processing unit] that does not require a control signal and whose frequency is not fixed by any external crystal.”
In a motion to stay the case pending objections to the claims construction ruling, the parties said they “hereby stipulate that all accused products of all Defendants in this Action do not infringe the asserted claims of U.S. Patent 5,809,336 under the Entire Oscillator Construction.”
Technology Properties has until October 6 to file an objection to the claim construction report.
"Patriot believes the report and recommendation, which are inconsistent with the claims construction issued by the same court in which a jury previously found infringement of the '336 patent against HTC Corporation, is in error," the company said in a statement.
In conjunction with preparing to file its objections, Patriot said it has agreed to a stipulation of defendants' non-infringement, limited to the recent claim construction.
"If the report and recommendations are adopted by the District Judge then Patriot plans to file an appeal with the United States Court of Appeal for the Federal Circuit. Patriot plans to continue to vigorously pursue its rights under the '336 patent and expects to pursue remedies in addition to the pending objection if required."
Charles Hoge, a parter with Kirby Noonan Lance and Hoge in San Diego, Calif., who represented Patriot Scientific, couldn’t be reached for comment.
Fabio Marino, a partner with McDermott Will & Emery, who represented ZTE, couldn’t be reached for comment.
Shares of Patriot Scientific fell 1.83 cents of 64.92% to 0.0099 1:20 pm in New York trading.
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