Fujitsu Ltd has always maintained that it uses a fundamentally different means of chip fabrication from that described in Texas Instruments Inc’s Kilby patent, and a Japanese court has agreed with its contention, marking a significant setback for Texas, whose patent royalty stream is now a very important source of revenue. Texas says it will appeal the decision by the Tokyo District Court, which it said calls into question the availability of intellectual property protection in Japan. Other Japanese companies, including Toshiba Corp., Oki Electric Industry Co, Matsushita Electric Industrial Co and NEC Corp, pay royalties on the patent.