Court Rejects Injunction on Re-Examination of Synopsys' Patents

Magma(R) Design Automation Inc. (Nasdaq:LAVA) announced that a motion by Synopsys Inc. (Nasdaq:SNPS) seeking to impede a possible re-examination of two patents at issue in the companies’ ongoing dispute was today denied. As a result of this denial, issued in the U.S. District Court for the Northern District of California, the U.S. Patent and Trademark Office (U.S. PTO) may elect to re-examine the patents in question and could ultimately invalidate them.

“We’re pleased the court reached this decision, and we consider it to be the correct one,” said David Stanley, corporate vice president for Corporate Affairs at Magma. “We believe it is important to the industry and to the public that the patent office remains free to evaluate the validity of these patents.”

Synopsys filed its motion after the U.S. PTO received a request to re-examine U.S. Patents 6,453,446 (the ’446 patent) and 6,725,438 (the ’438 patent), two of the three patents at issue in the lawsuit Synopsys filed against Magma just over two years ago. The motion sought either a stay of the re-examination of the ’446 and ’438 patents or a transfer of their ownership to Synopsys so it could participate in the re-examination process. The motion also sought to prevent Magma from filing a patent owner’s statement as part of the re-examination process. The court denied Synopsys’ motion without prejudice, meaning that Synopsys may renew the motion at a later time if conditions change.

In August, the U.S. PTO rejected all the claims in U.S. patent number 6,378,114, the third patent in question in this lawsuit. That action did not invalidate the patent but was an intermediate step in the re-examination process that could ultimately result in the patent being deemed invalid. Magma has stated previously that if all three patents at issue in the case are found invalid, the patent case could be dismissed.

Filings, court orders and other documents relevant to these matters are available on the Magma website.

About Magma
Magma’s software for integrated circuit (IC) design is recognized as embodying the best in semiconductor technology. The world’s top chip companies use Magma’s electronic design automation (EDA) software to design and verify complex, high-performance ICs for communications, computing, consumer electronics and networking applications, while at the same time reducing design time and costs. Magma provides software for IC implementation, analysis, physical verification, characterization and programmable logic design, and its integrated RTL-to-GDSII design flow offers “The Fastest Path from RTL to Silicon”(TM). Magma is headquartered in Santa Clara, Calif., with offices around the world. Magma’s stock trades on Nasdaq under the ticker symbol LAVA.

Magma is a registered trademark and “The Fastest Path from RTL to Silicon” is a trademark of Magma Design Automation Inc.