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US probes Samsung for alleged infringement of Netlist's memory-chip patents

Created at 16 Jul · 10:58 AM1 source↑ Market-relevant
IN SHORT

U.S. trade regulators have launched a probe into Samsung Electronics' memory chips and products sold by Google, Nvidia, Broadcom, and Super Micro Computer. The investigation follows a complaint by Netlist alleging infringement of its patents.

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Key Numbers

$420 millionawarded to Netlist in previous verdicts against Samsung
$303.15 milliondamages awarded in April 2023 for Samsung's infringement
$118 milliondamages awarded in November 2024 for three infringed patents

Who's Involved

Netlist
memory technology developer that filed the patent infringement complaint
Samsung Electronics
memory chip manufacturer accused of patent infringement
U.S. International Trade Commission (USITC)
trade regulator launching the probe
Google
company whose products allegedly use infringing Samsung chips
Nvidia
company whose products allegedly use infringing Samsung chips
Broadcom
company whose products allegedly use infringing Samsung chips
Super Micro Computer
company whose products allegedly use infringing Samsung chips
US probes Samsung for alleged infringement of Netlist's memory-chip patents

↳ Why This Matters

The investigation could lead to import restrictions on Samsung's memory chips and products incorporating them, impacting major technology companies and potentially disrupting the supply chain for AI-related hardware.

Key facts

  • The U.S. International Trade Commission (ITC) has initiated a probe into Samsung Electronics.
  • The investigation concerns alleged infringement of Netlist's memory-chip patents.
  • Products from Google, Nvidia, Broadcom, and Super Micro Computer that use Samsung's chips are included in the probe.
  • Netlist claims Samsung infringed its patents related to dynamic random access memory (DRAM) technology.
  • This probe follows previous legal actions where Netlist was awarded over $420 million from Samsung in jury verdicts.

The U.S. International Trade Commission (ITC) has launched an investigation into Samsung Electronics and its memory chips, as well as products from Google, Nvidia, Broadcom, and Super Micro Computer that utilize these chips. This action stems from a complaint filed by Netlist, a California-based memory technology developer, alleging that Samsung has infringed upon its patents for dynamic random access memory (DRAM). DRAM is a critical component for servers powering artificial intelligence applications.

This ITC probe is the latest development in an ongoing legal campaign by Netlist against Samsung. Netlist previously terminated a joint development and license agreement with Samsung in July 2020, citing Samsung's repeated failure to fulfill orders at competitive prices. This termination was followed by lawsuits in U.S. district courts. In March, a jury found Samsung had materially breached the joint development agreement. Furthermore, two separate patent infringement lawsuits resulted in jury verdicts awarding Netlist over $420 million: $303.15 million in April 2023 for the infringement of five patents, and an additional $118 million in November 2024 for three other infringed patents. Netlist has also filed patent infringement suits against Google, a former customer that began purchasing Samsung modules after previously sourcing customized Netlist module designs.

Frequently asked questions

Netlist alleges that Samsung has infringed its patents related to dynamic random access memory (DRAM) technology, which is crucial for AI servers.

The probe also includes products sold by Google, Nvidia, Broadcom, and Super Micro Computer that use Samsung's memory chips.

Netlist and Samsung had a joint development agreement that Netlist terminated in 2020. Netlist has since won multiple jury verdicts against Samsung, totaling over $420 million for patent infringement and breach of contract.

Netlist develops and commercializes DRAM and NAND memory innovations, including advancements in load reduction and power management for high-end server memory modules.

What Happens Next

01The ITC will conduct an investigation into the alleged patent infringements.
02A determination on whether a violation of U.S. trade law has occurred will be made.

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Cadence

How It Developed

Netlist filed a complaint with the U.S. International Trade Commission (ITC) alleging patent infringement by Samsung.
The ITC has launched a probe into Samsung Electronics' memory chips and products sold by Google, Nvidia, Broadcom, and Super Micro Computer.
Netlist accuses Samsung of infringing its patents on dynamic random access memory (DRAM) chips.
Netlist previously won jury verdicts totaling over $420 million against Samsung for patent infringement and breach of a joint development agreement.

Sources

T1
US probes Samsung for alleged infringement of Netlist's memory-chip patentsReuters
T2
Netlist Continues Enforcement Campaign Against ...ipwatchdog.com
T2
Media Coverage: McKool Smith Secures $303 Million Verdict in Patent Infringement Case Against Samsung: McKool Smithmckoolsmith.com

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