Netlist Secures Unanimous Jury Verdict Against Samsung in the United States Federal Court

Rhea-AI Summary

Netlist (OTCQB:NLST) has secured a unanimous jury verdict against Samsung in the Federal District Court for the Central District of California. The jury found that Samsung materially breached the Joint Development and License Agreement signed in November 2015, confirming Samsung does not have a license to Netlist's patent portfolio.

The verdict follows two previous successful patent infringement cases against Samsung, where Netlist was awarded damages of $303 million in April 2023 and $118 million in November 2024, totaling $421 million in damages to date. As the world's largest memory manufacturer, Samsung faces significant exposure due to its tens of billions of dollars in annual memory revenue.

Positive

• Unanimous jury verdict confirms Samsung's breach of licensing agreement
• Total damages awarded against Samsung reach $421 million
• Samsung loses license rights to Netlist's patent portfolio
• Significant potential for additional damages due to Samsung's large memory revenue exposure

Negative

• Risk of Samsung appealing the verdict and delaying damage payments
• Ongoing litigation costs and uncertainties with multiple parties (Samsung, Micron, Google)
• Potential for appeals to reduce or overturn damage awards

-Confirms Samsung Does Not Have a Patent License-

IRVINE, CA / ACCESS Newswire / March 25, 2025 / Netlist, Inc. (OTCQB:NLST) today announced that a jury verdict in the Federal District Court for the Central District of California found Samsung materially breached the Joint Development and License Agreement ("the Agreement") signed by the parties in November 2015.

C.K. Hong, Netlist's Chief Executive Officer, said, "The unanimous jury decision confirmed Samsung breached the Agreement and does not have a license to Netlist's patent portfolio. On behalf of all stakeholders, we remain committed to protecting our patents from unauthorized use and securing fair value for them."

As the largest memory manufacturer in the world, Samsung faces significant exposure from its tens of billions of dollars in annual memory revenue. In April 2023 and November 2024, Netlist received jury awards for the willful infringement of its patents against Samsung and was awarded $303 million and $118 million in damages, respectively. This brings total damages awarded to Netlist against Samsung to date to $421 million.

Safe Harbor Statement

This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements contained in this news release include, without limitation, statements about Netlist's ability to execute on its strategic initiatives and Netlist's ability to protect its intellectual property. Forward-looking statements are statements other than historical facts and often address future events or Netlist's future performance and reflect management's present expectations regarding future events and are subject to known and unknown risks, uncertainties and other factors that could cause actual results to differ materially from those expressed in or implied by any forward-looking statements. These risks, uncertainties and other factors include, among others: risks that Samsung will appeal the final order by the trial court for the first Samsung litigation or this jury verdict, that the second patent infringement litigation with Samsung may not result in a favorable result for the company, risks that Micron will appeal the final judgment by the trial court (appeals in general could cause a lengthy delay in Netlist's ability to collect damage awards, could overturn verdicts or reduce damages awards); risks that Netlist will suffer adverse outcomes in its litigation with Samsung, Micron or Google or in its various other active proceedings to defend the validity of its patents; risks related to Netlist's plans for its intellectual property, including its strategies for monetizing, licensing, expanding, and defending its patent portfolio; risks associated with patent infringement litigation initiated by Netlist, or by others against Netlist, as well as the costs and unpredictability of any such litigation; risks associated with Netlist's product sales, including the market and demand for products sold by Netlist and its ability to successfully develop and launch new products that are attractive to the market; the success of product, joint development and licensing partnerships; the competitive landscape of Netlist's industry; and general economic, political and market conditions, including the ongoing conflicts between Russia and Ukraine and Israel and Palestine, factory slowdowns and/or shutdowns. All forward-looking statements reflect management's present assumptions, expectations and beliefs regarding future events and are subject to known and unknown risks, uncertainties and other factors that could cause actual results to differ materially from those expressed in or implied by any forward-looking statements. These and other risks and uncertainties are described in Netlist's Quarterly Report on Form 10-Q for the quarter ended September 28, 2024 filed with the U.S. Securities and Exchange Commission on November 7, 2024, and the other filings it makes with the U.S. Securities and Exchange Commission from time to time, including any subsequently filed annual, quarterly and current reports. In light of these risks, uncertainties and other factors, these forward-looking statements should not be relied on as predictions of future events. These forward-looking statements represent Netlist's assumptions, expectations and beliefs only as of the date they are made, and except as required by law, Netlist undertakes no obligation to revise or update any forward-looking statements for any reason.

About Netlist

Netlist is a leading innovator in advanced memory and storage solutions, pushing the boundaries of technology to deliver unparalleled performance and reliability. With a rich portfolio of patented technologies, Netlist inventions are foundational to the advancement of AI which is revolutionizing computing and empowering businesses and industries to thrive in the digital age. To learn more about Netlist, please visit www.netlist.com.

For more information, please contact:

Investors/Media
The Plunkett Group
Mike Smargiassi
NLST@theplunkettgroup.com
(212) 739-6729

SOURCE: Netlist, Inc.

View the original press release on ACCESS Newswire

FAQ

What was the outcome of Netlist's latest legal victory against Samsung in 2025?

A unanimous jury verdict found Samsung materially breached the 2015 Joint Development and License Agreement, confirming Samsung has no license to Netlist's patent portfolio.

How much has Netlist (NLST) been awarded in total damages against Samsung?

Netlist has been awarded total damages of $421 million, comprising $303 million in April 2023 and $118 million in November 2024.

What are the potential financial implications for Samsung following NLST's legal victory?

Samsung faces significant exposure due to its tens of billions in annual memory revenue, as it no longer has license rights to Netlist's patents.

What risks does Netlist (NLST) face regarding the Samsung verdict?

Samsung may appeal the verdict, which could delay damage payments, potentially reduce awards, or overturn the verdict entirely.

When was the original agreement between Netlist and Samsung signed?

The Joint Development and License Agreement was signed in November 2015.