{"id":1449,"date":"2025-01-10T12:46:27","date_gmt":"2025-01-10T12:46:27","guid":{"rendered":"https:\/\/ipfray.com\/?p=1449"},"modified":"2025-01-10T12:46:27","modified_gmt":"2025-01-10T12:46:27","slug":"npe-sues-sk-hynix-in-eastern-district-of-texas-alleges-dell-microsoft-and-nvidia-also-indirectly-infringing-semiconductor-patents","status":"publish","type":"post","link":"https:\/\/ipfray.com\/staging1\/npe-sues-sk-hynix-in-eastern-district-of-texas-alleges-dell-microsoft-and-nvidia-also-indirectly-infringing-semiconductor-patents\/","title":{"rendered":"NPE sues SK Hynix in Eastern District of Texas: alleges Dell, Microsoft and Nvidia also &#8220;indirectly&#8221; infringing semiconductor patents"},"content":{"rendered":"\n<div class=\"wp-block-group has-global-padding is-layout-constrained wp-block-group-is-layout-constrained\" style=\"border-width:1px\">\n<p><strong>Context:<\/strong> The global semiconductor industry is growing exponentially, with the latest figures showing worldwide sales hit US$57.8 billion in November 2024 \u2013 a 20.7% year-on-year increase (<a href=\"https:\/\/www.semiconductors.org\/global-semiconductor-sales-increase-20-7-year-to-year-in-november\/\">January 7, 2025 Semiconductor Industry Association press release<\/a>). But everyone wants to have, and keep, a slice of the market, triggering a wave of semiconductor patent infringement disputes across the globe.<\/p>\n\n\n\n<p><strong>What&#8217;s new: <\/strong>South Korea\u2019s SK Hynix has become the latest in this wave of semiconductor-related patent infringement disputes. Non-practising entity Advanced Memory Technologies LLC (AMT) sued the memory chip supplier in the United States District Court for the Eastern District of Texas, alleging that the company has infringed four patents related to semiconductor memory modules.<\/p>\n\n\n\n<p><strong>Direct impact and wider ramifications:<\/strong> The U.S. is one of SK Hynix\u2019s most lucrative markets, with the complaint stating that its Texas-based subsidiary earned US$12 billion in revenue in the first six months of 2024 \u2013 accounting for more than half of its overall sales during that time. AMT has demanded a trial by jury and has also named three major tech companies in the complaint, Dell, Microsoft and Nvidia, alleging that they \u201cdirectly or indirectly make, import, ship, distribute, offer for sale, sell, and advertise products incorporating SK Hynix\u2019s infringing memory modules in the U.S.\u201d.<\/p>\n<\/div>\n\n\n\n<p>This is the complaint:<\/p>\n\n\n\n<div data-wp-interactive=\"core\/file\" class=\"wp-block-file\"><object data-wp-bind--hidden=\"!state.hasPdfPreview\" hidden class=\"wp-block-file__embed\" data=\"https:\/\/ipfray.com\/wp-content\/uploads\/2025\/01\/24-12-30-EDTX24cv1078-AMT-v.-SK-Hynix-complaint.pdf\" type=\"application\/pdf\" style=\"width:100%;height:600px\" aria-label=\"Embed of 24-12-30 EDTX24cv1078 AMT v. SK Hynix complaint.\"><\/object><a id=\"wp-block-file--media-e820e4bf-8b8f-43fb-a02e-996f525c5d51\" href=\"https:\/\/ipfray.com\/wp-content\/uploads\/2025\/01\/24-12-30-EDTX24cv1078-AMT-v.-SK-Hynix-complaint.pdf\">24-12-30 EDTX24cv1078 AMT v. SK Hynix complaint<\/a><a href=\"https:\/\/ipfray.com\/wp-content\/uploads\/2025\/01\/24-12-30-EDTX24cv1078-AMT-v.-SK-Hynix-complaint.pdf\" class=\"wp-block-file__button wp-element-button\" download aria-describedby=\"wp-block-file--media-e820e4bf-8b8f-43fb-a02e-996f525c5d51\">Download<\/a><\/div>\n\n\n\n<p>AMT is a Texas-based non-practising entity that has so far not launched any patent infringement lawsuits (not publicly anyway). Lead attorney for AMT is <a href=\"https:\/\/www.susmangodfrey.com\/\">Susman Godfrey<\/a>\u2019s <a href=\"https:\/\/www.susmangodfrey.com\/attorneys\/justin-a-nelson\/\">Justin Nelson<\/a>, who has represented companies in several high-profile cases in the U.S., including Dominion Voting Systems\u2019 US$787.5 million settlement with Fox News in April 2023. His portfolio also includes several IP enforcement successes and he is currently representing ParTec in its patent infringement lawsuit against Microsoft (<a href=\"https:\/\/ipfray.com\/famous-patent-monetizer-frohwitters-supercomputer-firm-files-multi-billion-dollar-lawsuit-over-microsofts-cloud-ai-infrastructure\/\">June 10, 2024 <strong>ip fray<\/strong> article<\/a>), Fractus in a pair of IoT patent infringement lawsuits against Verizon and Geotab (<a href=\"https:\/\/ipfray.com\/fractus-files-fresh-iot-related-patent-litigation-sues-geotab-and-verizon-in-eastern-district-of-texas\/\">December 16, 2024 <strong>ip fray<\/strong> article<\/a>), the Authors Guild in a copyright infringement suit against OpenAI (<a href=\"https:\/\/aifray.com\/openai-deleted-books1-and-books2-training-datasets-water-under-the-copyright-bridge-sign-of-guilt-or-spoliation-of-evidence\/\">June 22, 2024 <strong>ip fray<\/strong> article<\/a>) and book authors in a copyright infringement class action against Claude LLM maker Anthropic, (<a href=\"https:\/\/aifray.com\/book-authors-bring-class-action-lawsuit-against-claude-maker-anthropic-over-alleged-copyright-violations\/\">October 10, 2024 <strong>ip fray<\/strong> article<\/a>).<\/p>\n\n\n\n<p>Mr. Nelson\u2019s join counsel includes Susman Godfrey\u2019s Kalpana Srinivasan (lead counsel for Huawei in its case against Netgear in the U.S., which the companies settled earlier this month (<a href=\"https:\/\/ipfray.com\/netgear-settles-wifi-6-standard-essential-patent-dispute-with-huawei-takes-license-to-sisvel-pool-between-unified-patent-court-and-munich-i-regional-court-rulings\/\">January 4, 2025 <strong>ip fray<\/strong> article<\/a>)), Ian Gore, Kemper Diehl and Bianca Rey, as well as <a href=\"https:\/\/millerfairhenry.com\/\">Miller Fair Henry<\/a>\u2019s Claire Abernathy Henry and Andrea Fair. <\/p>\n\n\n\n<p>Based in Icheon, defendant SK Hynix manufactures and sells semiconductor devices such as NAND flash memory and DRAM modules. It is partly owned by SK Group and partly by Hyundai Group, two of the country\u2019s \u201cBig Four\u201d \u2013 Samsung, Hyundai Motor, SK and LG \u2013 which collectively own some of the largest patent portfolios in the world. SK Hynix is also one of the largest semiconductor sellers in the world and manages a portfolio of over 1,200 patents.<\/p>\n\n\n\n<p>The patents-in-suit are:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><a href=\"https:\/\/patents.google.com\/patent\/US7777557B2\/\">US Patent No. 7,777,557<\/a> (\u201cBooster circuit\u201d)<\/li>\n\n\n\n<li><a href=\"https:\/\/patents.google.com\/patent\/US7920018B2\/\">US Patent No. 7,920,018<\/a> (\u201cBooster circuit\u201d)<\/li>\n\n\n\n<li><a href=\"https:\/\/patents.google.com\/patent\/US7969231B2\/\">US Patent No. 7,969,231<\/a> (\u201cInternal voltage generating circuit\u201d)<\/li>\n\n\n\n<li><a href=\"https:\/\/patents.google.com\/patent\/US8593888B2\/\">US Patent No. 8,593,888<\/a> (\u201cSemiconductor memory device\u201d)<\/li>\n<\/ul>\n\n\n\n<p>AMT claims that SK Hynix has derived and continues to derive substantial revenue from its infringing acts, including through its subsidiaries and customers. The U.S. accounted for 64% of SK Hynix\u2019s sales in Q3 2024, according to the complaint. In the first six months of 2024 alone, its U.S. business brought in US$12 billion in revenue \u2013 accounting for more than half of its overall sales during that time.<\/p>\n\n\n\n<p>The NPE alleges that SK Hynix also provides support for users and customers of its infringing semiconductor products in the U.S., as well as active promotion for such products at major events like HPE Discover 2024 and the Dell Technologies Forum 2024.<\/p>\n\n\n\n<p>Tech giants Dell, NVIDIA, Microsoft, and Advanced Micro Devices, Inc. (AMD) are some of SK Hynix\u2019s biggest customers in the U.S. and AMT also notes that they \u201cdirectly or indirectly\u201d make and sell products containing SK Hynix\u2019s infringing memory modules in the U.S. Nvidia, for example, uses SK Hynix\u2019s high-bandwidth DRAM chips in its AI processors and Grace CPU Superchip, while Microsoft uses SK Hynix\u2019s memory modules in products such as Xbox Series X\/S gaming consoles, the complaint reads.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\">Other notable semiconductor patent lawsuits<\/h4>\n\n\n\n<p>Seoul Semiconductor, for example, sued Amazon in the Unified Patent Court last June, seeking an injunction for the infringement of LED-related patents (<a href=\"https:\/\/www.seoulsemicon.com\/en\/media\/newsroom\/93\">June 19, 2024 Seoul Semiconductor press release<\/a>).<\/p>\n\n\n\n<p>A month later, China\u2019s Yangtze Memory Technologies Co. Ltd. filed a suit against chipmaker Micron in the United States District Court for the Northern District of California over 11 flash memory patents.<\/p>\n\n\n\n<p>And, in September, Xockets sued both Microsoft and Nvidia over illegal monopoly practices and the infringement of its patented DPU technology in the United States District Court for the Western District of Texas (<a href=\"https:\/\/ipfray.com\/xockets-now-trying-to-assert-patents-against-microsofts-fungible-and-azure-boost-dpus-after-first-focusing-on-microsofts-use-of-nvidia-chips\/\">December 14, 2024 <strong>ip fray<\/strong> article<\/a>).<\/p>\n\n\n\n<p>Some recent final outcomes include Google\u2019s January 2024 settlement with Singular Computing LLC over AI-related chip patents, in which the NPE was seeking US$1.6 billion. A major decision in May 2024 was also handed down by the Eastern District of Texas, requiring chipmaker Micron to pay over US$445 million in damages for infringing Netlist\u2019s memory module patents.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Advanced Memory Technologies LLC, represented by litigation powerhouse Susman Godfrey, has accused SK Hynix of infringing four semiconductor-related patents.<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"nf_dc_page":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[12,14],"tags":[],"class_list":["post-1449","post","type-post","status-publish","format-standard","hentry","category-patent-litigation","category-patents"],"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/ipfray.com\/staging1\/wp-json\/wp\/v2\/posts\/1449","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ipfray.com\/staging1\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/ipfray.com\/staging1\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/ipfray.com\/staging1\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/ipfray.com\/staging1\/wp-json\/wp\/v2\/comments?post=1449"}],"version-history":[{"count":20,"href":"https:\/\/ipfray.com\/staging1\/wp-json\/wp\/v2\/posts\/1449\/revisions"}],"predecessor-version":[{"id":1470,"href":"https:\/\/ipfray.com\/staging1\/wp-json\/wp\/v2\/posts\/1449\/revisions\/1470"}],"wp:attachment":[{"href":"https:\/\/ipfray.com\/staging1\/wp-json\/wp\/v2\/media?parent=1449"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ipfray.com\/staging1\/wp-json\/wp\/v2\/categories?post=1449"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ipfray.com\/staging1\/wp-json\/wp\/v2\/tags?post=1449"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}