8/3/2019 Example Memorandun- Kilby v Noyce

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DATE: 11/03/2011

TO: Professor Savage

FROM: Austin Schader

SUBJECT: Kilby v. Noyce

The following summarizes the stances and outcomes of the Kilby V. Noyce patent battle for the invention

of the integrated circuit.

Background

In 1958 Jack Kilby of Texas Instruments developed a method for integrating multiple components onto a

single circuit board, in order to miniaturize a circuit. He then built a crude model consisting of a silicon

substrate containing different components connected by independently connected wires. Kilby wanted to

find a better way to connect each component, however, at the urge of his lawyer filed for a patent in

February of 1959 with a drawing depicting the crude prototype. The sword type patent was intended to

cover a broad spectrum of similar designs as Kilbys design was revolutionary in nature. AdditionallyKilby had a clause drafted into his patent that specifically said that the wires may be replaceable with an

oxide layer, with several gold wires laid down on to connect each component.

Rumors quickly spread, in late February, about Texas Instruments new Solid Circuit which prompted

Bob Noyce of Fairchild (a single components manufacturer) to explain he had also been developing a

similar integrated circuit. Noyces circuit featured multiple components on a silicon substrate that were

connected via gold wires adherent to an oxide layer. Fearing being left behind in the microchip market

Fairchild filed a shield patent with Noyces design and picture (similar to a modern day circuit board), in

July of 1959. Noyces patent clearly used the words adherent to to describe the gold wires connectingeach component.

Kilby v. Noyce

Both patents were granted giving sole rights to each party. This sometimes occurs, as there are many

different patent examiners doing dozens of patents per year. The cases are then handled by Board of Patent

interferences who told both Noyce and Kilby to produce evidence describing the first time they had thought

of the idea. Kilby produced a lab notebook sketch dated 1958 while Noyces dated 1959. This granted

Kilby exclusive rights and forced Noyces lawyers to find something wrong with Kilbys patent.

The solution for Noyce came in the crude drawing of the circuit board as well as the description gold will

be laid down on to the oxide layer. At first attempt (1967) the board was not impressed with the

argument saying Kilbys drawing and dialog were good enough, however, upon appeal (1969) the court

reversed the ruling and granted exclusive rights to Fairchild and Noyce after expert testimony that thewords laid down on were not scientifically specific enough to describe the process.

Ultimatum

Ultimately the rights were split equally between Texas Instruments and Fairchild as a meeting in 1966(before any opinions had been filed) between the executives of each company ruled both men had taken

part in creating the integrated circuit. Eventually both men would split equal credit from the community

and would be rewarded through several scientific honors including the Nobel Prize.

I do not agree with the courts ruling as I believe, as the board did, that Kilbys words were good enough.

Company Confidential Page 1 11/13/2011

8/3/2019 Example Memorandun- Kilby v Noyce

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Company Confidential Page 2 11/13/2011