Netlist Prevails in Federal Court Against Samsung

Rhea-AI Summary

Netlist (OTCQB:NLST) announced a significant legal victory against Samsung in the Federal District Court for the Central District of California. The jury found that Samsung materially breached the 2015 Joint Development and License Agreement, resulting in Samsung losing its license to Netlist's patent portfolio.

Samsung, being the largest memory manufacturer globally with annual memory revenues in the tens of billions, faces substantial implications from this verdict. Netlist's CEO, C.K. Hong, expressed gratitude to the jury and emphasized the company's commitment to protecting its intellectual property and ensuring fair compensation for its shareholders.

Positive

• Netlist secured a legal victory in federal court, enhancing its position in protecting intellectual property.
• Samsung's loss of the patent license may open opportunities for Netlist to negotiate new or more favorable agreements.
• The verdict could potentially lead to financial compensation or settlement from Samsung, benefiting Netlist's financial standing.

Negative

• The legal battle signifies ongoing litigation expenses for Netlist.
• There may be potential risks of appeal from Samsung, prolonging legal uncertainty.
• Samsung's breach of agreement highlights potential challenges in maintaining and enforcing licensing agreements.

Samsung Materially Breached Agreement and No Longer Has Patent License

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. Samsung is the largest memory manufacturer in the world, generating tens of billions of dollars in memory revenue annually.

C.K. Hong, Netlist's Chief Executive Officer, said, "We would like to thank the Jury for their diligence in this case. Their unanimous decision confirmed that Samsung breached the Agreement and no longer has a license to Netlist's patent portfolio. We are committed to protecting our intellectual property and extending licenses which fairly compensate Netlist and its shareholders."

About Netlist
Netlist is a leading innovator in memory and storage solutions, pushing the boundaries of technology to deliver unparalleled performance and reliability. With a rich portfolio of patented technologies, Netlist has consistently driven innovation in the field of cutting-edge enterprise memory and storage, empowering businesses and industries to thrive in the digital age. To learn more about Netlist, please visit www.netlist.com.

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 are statements other than historical facts and often address future events or Netlist's future performance. Forward-looking statements contained in this news release include statements about Netlist's ability to execute on its strategic initiatives. All forward-looking statements 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 judgment by the trial court, which could cause a lengthy delay in Netlist's ability to collect the damage award or overturn the verdict or reduce the damages award; risks that Netlist will suffer adverse outcomes in its pending litigation against Micron, Samsung and Google; 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 quarantines, factory slowdowns and/or shutdowns. The military conflict between Russia and Ukraine may increase the likelihood of supply interruptions. 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 annual report on Form 10-K for its most recently completed fiscal year filed on February 23, 2024, and the other filings it makes with the U.S. Securities and Exchange Commission from time to time, including any subsequently filed 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.

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 accesswire.com

FAQ

What was the outcome of Netlist's lawsuit against Samsung?

Netlist won the lawsuit, with the jury finding that Samsung materially breached the Joint Development and License Agreement, leading to Samsung losing its patent license.

When was the Joint Development and License Agreement between Netlist and Samsung signed?

The agreement was signed in November 2015.

How does the verdict affect Samsung?

Samsung no longer has a license to Netlist's patent portfolio, which could impact its operations and financials.

What did Netlist's CEO say about the jury's decision?

Netlist's CEO, C.K. Hong, thanked the jury for their diligence and reaffirmed the company's commitment to protecting its intellectual property and ensuring fair compensation for shareholders.

What are the financial implications of the verdict for Netlist?

The verdict could lead to financial compensation or settlements from Samsung, enhancing Netlist's financial position.