Context: Netlist is a California-based company that designs and manufactures products for cloud computing, virtualization, and high-performance computing markets, including memory modules. The latter are printed circuit boards that contain several memory devices, and are used in servers supporting cloud-based computing, artificial intelligence, and other data-intensive applications, as well as in consumer applications such as PCs and laptops. The company has enforced patents related to this technology before, securing a major victory in the Eastern District of Texas in 2023, when the court found Samsung had willfully infringed five of its patents and awarded Netlist $303.15 million in damages (July 24, 2024 Netlist press release). It was also awarded $445 million in damages by the same court in a case against Micron (May 24, 2024 ip fray article), and another $118 million in a parallel case against Samsung six months later (December 2, 2024 final judgment).
What’s new: Netlist has asserted another patent against Samsung (and one of its distributors, Avnet) in the Eastern District of Texas: U.S. Patent No. 7,289,386 (“Memory module decoder”), which is not identified as a standard-essential patent (SEP), but is related to patents that are involved in memory standards discussions. The patentee is seeking damages and a permanent injunction.
Direct impact: This case appears to be upping the settlement pressure on Samsung. Netlist’s complaint includes allegations that Samsung allegedly failed to honor contractual obligations – Samsung may want to avoid a jury trial where this story is retold and could make a psychological impact on jurors. While both companies operate in the wider memory business, Netlist is more of a niche player and may primarily be interested in receiving payments from Samsung.
Wider ramifications: Samsung has suffered a lot of blows lately, the latest one being yesterday evening when InterDigital announced the conclusion of arbitration proceedings with Samsung over its mobile device business, in which InterDigital has been granted $1.05 billion for the eight-year patent license (July 30, 2025 ip fray article). This is a 67% increase from the previous license agreement, it said in an 8K filing with the Securities and Exchange Commission (SEC). The arbitration result also comes as Samsung fights a global patent infringement dispute against ZTE, which is currently gaining no traction in the U.S. (July 9, 2025 ip fray article).
This is the complaint:
The products that the asserted patent covers include Samsung’s DDR5 RDIMMs and other products with similar structures and features. They also include modules utilizing Samsung’s own power management IC, including at least PMIC components having the following part numbers: S2FPC01, S2FPD01, and S2FPD02.6.
The suit comes as a result of a breakdown in a commercial relationship between Samsung and Netlist that started in 2015. Under a Joint Development and License Agreement, Samsung used Netlist’s technologies to develop products and, in return, was supposed to supply Netlist with some of those products for competitive prices. “Samsung did not honor its promises and repeatedly failed to fulfil Netlist’s product orders,” the complainant has claimed.
In July 2020, Netlist terminated the agreement, a decision later upheld by the Central District of California in 2021. Samsung appealed against that termination decision, and the Ninth Circuit partially granted its appeal.
But, following a jury trial in May 2024, the Central District of California held that Netlist’s interpretation of the agreement’s supply provision was correct and Samsung’s breach of that provision was “material”.
Counsel
Netlist is being represented by Jennifer Truelove, Samuel F. Baxter, and Travis E. DeArman at McKool Smith, as well as Jason Sheasby, Annita Zhong, PhD, Andrew Strabone, and Michael Tezyan at Irell and Manella.