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Berkshire unit loses bid to recoup Microsoft chip claim



A federal jury has returned a verdict against Berkshire Hathaway Group Inc. in its effort to recover $ 150 million in paid to Microsoft Corp. over a chip's alleged failure to deliver its product under its contract.

Microsoft entered into an agreement in 2004 to have San Jose-based Hynix Semiconductor America, which is now known as SK Hynix America Inc., to deliver and "uninterrupted" supply ”of its Dynamic Random Access Memory chips, according to the March 2017 complaint, which was filed in US Seattle District Court in Cypress Insurance Co. v. SK Hynix America Inc.

In September 2013, SK Hynix informed Microsoft it would not comply with the terms of its agreement and provide the DRAM chips as required, according to the complaint.

Because of this , Microsoft was forced to secure alternate chip sourcing at a higher price to support its shipment requirements, according to the complaint.

In response to the alleged damages, Berkshire Hathaway unit Cypress paid $ 1

50 million to Microsoft under its policy. It then filed the complaint against SK Hynix seeking "the full extent" of its payment as Microsoft's subroye.

SK Hynix denied the allegations in the lawsuit in its response to the complaint.

The court entered judgment in SK Hynix's favor Friday's jury verdict.

"Obviously, we're thrilled with the verdict. We feel like our client has been vindicated, ”said SK Hynix attorney Timothy B. Yoo, a principal with Bird, Marella, Boxer, Wolpert, Nessim, Drooks, Lincenberg & Rhow P.C. in Los Angeles. "They really did nothing wrong."

A Cypress attorney had no comment.

In March, Taiwan's Foxconn Technology Co. Ltd. responded to patent infringement lawsuit filed against it by Microsoft Corp., saying that as a contract manufacturer, it never needed to pay royalties for the U.S. company's software.


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