Samsung’s face burned in the legal battle. A pair of US court members ruled against Samsung in a patent case. A computer memory company named ‘Netlist’ won the case.
According to media reports, the case was filed against Samsung Electronics. They alleged that the memory modules used by Samsung in their state-of-the-art computing systems actually infringed on patents held by the Netlist company.
During the trial process, the allegations against Samsung in the US court were proved to be true. Due to which they have been fined a huge amount of money.
Samsung has been ordered by a pair of US court members to pay $118 million in fines to Netlist.
According to the news agency Reuters, the observations made by the members of the pair against Samsung in this case are very serious. That said, Samsung willfully infringed on Netlist’s rights.
Informed sources claim that this observation of the pair members may increase the risk of Samsung later. Because, in this case, the concerned judge can increase the financial amount of the fine three times maximum!
Samsung vs. Netlist case:
Netlist filed this case against Samsung in 2022. They said they had a patent for using a special technology to increase data processing and power efficiency.
But, Samsung ignored that patent and started using the corresponding memory module to run their own cloud computing and other data-intensive applications.
But, Samsung denied this allegation of Netlist. And make two counterarguments in their favor. First, they claim, the patent that Netlist is talking about is illegal. And secondly, the memory module they are using is completely different from the memory module discovered by netlist.
The memory module chip that sparked the legal battle here dates back to 2015. On the other hand, Netlist was founded in 2000 by a man named Hong Chun-ki. who is a former employee of LG Semiconductor.
Chun-ki patented a wide range of semiconductor technologies under his company’s name.
Samsung paid Netlist $23 million in 2015, according to a report in The Korea Economic Daily.
In exchange for this money, a contract was signed between the two companies for five years. Under the agreement, the two companies will work together to jointly produce memory solutions over the course of five years through development and licensing agreements.
After the expiration of this agreement, Meyer requested that Netlist extend its intellectual license. But, later the initiative failed due to lack of agreement between the two organizations.
After that Netlist decided to fight against Samsung in legal way. A commercial partner is accused of infringing patent rights.
On the other hand, the Samsung authorities filed a case against Netlist in the US state of Zelaware separately. In this case, Samsung alleges that the Netlist Authority has breached its technical licensing obligations under international standards.