Netlist's patent infringement case cost Samsung $303m

Onur Demirkol
Apr 24, 2023

Samsung will pay $303 million to Netlist Inc. due to several data processing improvement patent infringements. Netlist mentioned that both companies worked on a project together, and Samsung took the patented technology to use in its own products.

According to a recent report from Reuters, Samsung used Netlist Inc's patented technology in its own products, and once Netlist realized the infringement, it took the issue to court in Texas. The claim was filed back in 2021, and last Friday, it came to a conclusion after a jury found Samsung guilty, making it pay $300 million to Netlist Inc.

Samsung claimed that the company used a different way and didn't steal Netlist's patented technologies. Netlist accused Samsung of infringing five patents, and the jury accepted the concern and decided that Samsung infringed all five patents.

Samsung Netlist

Samsung and Netlist worked on a project together before

Netlist and Samsung worked on a project together, and the South Korean company saw the California-based firm's technologies there, which were all protected under patent law. Netlist accused Samsung of using its technologies after seeing them in a project both companies collaborated on before. Samsung attorneys said that the patents were invalid as their technologies worked in a different way.

At first, Netlist Inc. asked for $404 million in damages, but the jury hit Samsung with a $303 million bill.
Netlist's technologies "increase the power efficiency of memory modules and allow users to "derive useful information from vast amounts of data in a shorter period of time," said Reuters. After the verdict on Friday afternoon, Netlist stock went up 21%.

Samsung used the "stolen" innovations in its cloud computing servers and other data-intensive technologies, says Netlist. However, the company will pay $303 million to cover the Irvine-based company's damages over the years.

Samsung is also getting ready to invest $230 billion in South Korea's chip-making cluster, which makes $303 million look like a small amount of money.


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