South Korean memory giant SK hynix Inc. has reached a royalty settlement with U.S.-based Netlist Inc. for a patent cross license, putting an end to years-long memory patent disputes.
They will end all pending matters in the U.S. District Court for the Western District of Texas and the Paten Trial and Appeals Board of the U.S. Patent of Trademark Office, according to Netlist on Monday (local time).
SK hynix under the agreement can access Netlist’s patent portfolio. The U.S. chipmaker will receive an estimated $40 million in royalties, according to sources.
Nasdaq-listed Netlist was founded by C.K. Hong, who worked 15 years at LG Electronics and LG Semicon, in 2000. It filed a lawsuit with the U.S. International Trade Commission (ITC) against SK hynix over alleged patent infringements in 2016 and 2017, claiming that SK hynix makes unfair profits by infringing on its U.S. patents for memory technologies.
The ITC sided with SK hynix for the cases, and then Netlist sued SK hynix again in the district court of West Texas last year.
“We are delighted with the recognition of the value of Netlist’s intellectual property and very much look forward to partnering with SK hynix, a global leader in memory and storage technology,” said Hong.
SK hynix shares rose 0.35 percent to close Wednesday at 143,500 won in Seoul trading.
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