In 2005, August Technology filed a patent infringement suit against Camtek over metrology technology. The suit, filed in U.S. federal court in Minneapolis, alleged that Camtek's line of inspection equipment sold under the "Falcon" trademark infringes on August Technology's U.S. patent no. 6,826,298.

At that time, semiconductor inspection and metrology powerhouse Rudolph (Flanders, N.J.) signed an agreement to acquire inspection company August.

Last March, a jury determined in its verdict that all models of Camtek's Falcon inspection system ''literally infringe Rudolph's U.S. patent no. 6,826,298 for an automated wafer defect inspection system and a process of performing such inspection which covers continuous inspection of wafers using strobing illumination,'' according to Rudolph.

Now, the U.S. District Court in Minneapolis has issued a permanent injunction against Camtek, which bars Camtek from selling its Falcon line of inspection tools in the United States. Specifically, the injunction places significant obligations on Camtek, including the following measures:

*Camtek is prohibited from making, using, selling and offering to sell any of its Falcon machines in the U.S.

*Camtek is prohibited from communicating with third parties in the U.S. for the purposes of selling or offering to sell Falcon machines that are to be located or used in the U.S. or internationally.

*Camtek must state in marketing or advertising materials that the Falcon machine is not for sale or use in the U.S.

*Camtek cannot substantially improve or change the Falcon machines sold and delivered in the U.S. prior to March 5, 2009 (i.e.substantial software or hardware upgrades). Operator training for these systems is similarly prohibited.

*Camtek is also ordered to identify and secure all Falcon machines not yet shipped to U.S. customers that are currently located in the U.S.

*Award of damages and interest (to Rudolph) in the amount of $8.0 million.