Samsung Electronics settles patent dispute with Netlist through 5-yr licensing deal

SEOUL, Aug. 6 (Yonhap) -- U.S. chipmaker Netlist Inc. and Samsung Electronics Co. have reached a five-year licensing agreement to resolve their patent dispute, Netlist announced on Thursday. Under the deal, Samsung will gain access to Netlist's patent portfolio, which encompasses technologies for server dual in-line memory modules (DIMMs) and high-bandwidth memory (HBM) utilized in artificial intelligence (AI) servers and high-performance computing systems.

C.K. Hong, CEO of Netlist, expressed enthusiasm about extending their partnership and collaborating closely with Samsung. The agreement underscores the companies' mutual dedication to innovation in the AI-memory sector and validates the significance of Netlist's intellectual property. As part of the strategic alliance, Samsung will acquire 10 million shares of Netlist stock through a separate memory product supply agreement.

The companies agreed to settle and cease all ongoing legal actions concerning the patent dispute, following a series of patent lawsuits between them. In 2021, Netlist filed a lawsuit against Samsung, claiming that the South Korean tech giant's memory products in cloud computing servers and other data technologies infringed on its patents.

In 2023 and 2024, a Texas jury awarded Netlist damages of $303 million and $118 million, respectively. The legal proceedings persisted as both entities filed further appeals after several of Netlist's claimed infringements were later deemed invalid.