TSMC Entangled in Patent Infringement Lawsuit; IP Commissioner: Plaintiffs Likely Patent Trolls

Central News Agency Report

(CNA reporter Tseng Yun-ting, Taipei, June 16) Recent foreign media reports indicated that TSMC has been drawn into a patent infringement lawsuit in the United States. In response, Liao Cheng-wei, Commissioner of Taiwan's Ministry of Economic Affairs Intellectual Property Office (TIPO), stated today that the companies suing TSMC fall under the industry term 'patent trolls.' He expressed confidence in TSMC's ability to handle the case, noting the company's extensive experience and high success rate in past patent litigation and patent searches. TSMC has already filed patent invalidation challenges with the United States Patent and Trademark Office (USPTO).

TIPO held a press conference today titled 'Enhancing New Industry Competitiveness: Accelerating Patent Filing – TIPO Has Your Back.' Media attention focused on recent foreign reports that two patent-holding companies had sued TSMC, alleging its chips infringed on their patents. Journalists asked whether TIPO had information on the case.

Liao stated that, based on publicly available information, the two companies filing the lawsuits are what the industry commonly refers to as 'patent trolls.' Drawing from past experience, such companies typically do not engage in product manufacturing but instead use patent ownership to initiate lawsuits, primarily aiming to collect licensing fees or settlement payments.

He pointed out that the case has already entered proceedings at the United States International Trade Commission (ITC). However, TSMC has also filed patent invalidation challenges with the Patent Trial and Appeal Board (PTAB), the USPTO division responsible for reviewing patent validity. If the plaintiffs' patents are ultimately deemed invalid, the basis for the infringement claims would collapse, and the dispute could be resolved.

Liao further explained that a defendant in an infringement case can submit 'prior art'—evidence that the patented technology was already publicly known before the patent application—to argue that the patent lacks novelty or inventiveness, thereby requesting the revocation of the plaintiff's patent rights. In Taiwan, this process is known as 'invalidation (jufa)', while in the U.S., it is called 'patent invalidation'.

He emphasized that TSMC not only leads the world in R&D capabilities but also possesses a comprehensive intellectual property team with extensive experience in patent searches and strategic filings. TSMC has handled numerous patent lawsuits in the past and has demonstrated outstanding performance in such disputes. Therefore, he expressed confidence that TSMC can identify favorable prior art evidence to prove that the plaintiffs' patents fail to meet protection requirements.

Liao concluded that while the final determination of the case rests with the PTAB, which will review evidence from both sides, the current public information shows that TSMC has already taken proactive countermeasures. TIPO maintains strong confidence in TSMC's technical strength and patent defense capabilities. (Edited by Pan Yi-ching) 1150616