Aug 5 - Netlist announced on Wednesday that it has reached a five-year agreement to license its memory-related patents to Samsung Electronics. The deal provides Samsung access to Netlist's intellectual property and, according to Netlist, brings an end to prolonged legal disputes between the two firms.
Under the terms disclosed by Netlist, the agreement covers licensing of its patent portfolio and a supply arrangement for memory products. Samsung will receive rights to technologies in Netlist's portfolio, including server dual in-line memory module technology and high-bandwidth memory technologies that are used in AI servers and high-performance computing.
The memorandum also specifies that Samsung will supply Netlist with DRAM, which is used to temporarily hold data while processors are working, and NAND flash memory, which serves longer-term data storage functions. As part of the memory product supply agreement, Samsung will purchase 10 million Netlist shares.
Both companies agreed to settle and mutually release all pending legal actions between them, concluding a series of patent disputes that produced jury awards in Netlist's favor. A Texas jury awarded Netlist $303 million against Samsung in 2023 and a further $118 million in 2024 related to data-processing technology in memory products.
The deal was announced weeks after U.S. trade regulators opened an investigation into Samsung memory chips following a complaint by Netlist alleging patent infringement. That probe extends to products sold by Google, Nvidia, Broadcom and Super Micro Computer that incorporate Samsung memory chips, according to the information in Netlist's statement.
Netlist highlighted its role as a developer of advanced memory and storage technologies, noting its work on server memory and high-bandwidth memory technologies used in AI computing. The company also noted broader market dynamics: demand for high-performance memory chips has surged as technology companies expand AI data centers, increasing demand for chips produced by Samsung, SK Hynix and Micron Technology.
Market data included with the announcement showed share moves tied to the news: NLST was up 9.87% and 005930 was up 2.5% at the time of reporting.
Key details
- Five-year patent license from Netlist to Samsung covering server DIMM and high-bandwidth memory technologies used in AI servers and high-performance computing.
- Samsung will supply Netlist with DRAM and NAND flash memory and will acquire 10 million Netlist shares under the supply agreement.
- Both companies agreed to settle and mutually release all pending legal actions, ending years of litigation that produced jury awards to Netlist in 2023 and 2024.