Courthouse News: Marvell at this. $1.17B x 3 is almost Comic!
A chip maker, Marvel Technology Group, just lost a $1.17B law suit for stealing the technology of Carnegie Mellon University.
One has to marvel at this company’s antics, a company that trades by the symbol MRVL, and should in no way be confused with the comic company, although its antics carry both intrigue and humor.
You might call them the Chip Pirates of the Caribbean given their off-short headquarters in Bermuda. Their not chip makers, they are chip takers. [Insert poker chip puns here.]
The settlement as to the $1.17B law suit is still to be determine. Because of the willful and continued infringement, MRVL is subject to treble damages of $3.51B. (Half of the current market cap.) Plus they now are required to license the technology that they “borrowed” for so many years at a whopping $.50 per $2 chip sold which will chip away at the profits. The royalty payments are probably 25% of the company’s profits.
I like that MRVL’s own chips — in infringed chips — were the but of jokes internally. Because you wouldn’t want to use them in any electronic devise, the next best use for them is as “coffee warmers”!:-)
Even though there have been penalties and sanctions by the SEC, these rouge execs are still in power and still making big salaries.
However, shareholders have taken up a class law suit against the execs Satardja and Dai, attesting: “damages for breach of fiduciary duty, failure to maintain adequate controls, and unjust enrichment and breach of duty of honest services”
This is the story line from crime-fighting comic books. One has to marvel at it!
