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Samsung Was Fined $118 Million For Violating Netlist Patents

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A federal jury in Marshall, Texas, found Samsung Electronics liable for $118 million in damages to computer memory startup Netlist for a patent case involving technology that enhances data processing in high-performance memory devices.

TakeAway Points:

  • A federal jury in Marshall, Texas, on Friday awarded computer memory company Netlist $118 million in damages from Samsung Electronics in a patent lawsuit over technology for improving data processing in high-performance memory products.
  • Samsung denied the allegations, arguing that the patents were invalid and that its technology worked differently than Netlist’s inventions.
  • A senior U.S. cybersecurity officer stated on Friday that Chinese hackers are preparing to attack U.S. critical infrastructure IT networks in anticipation of a possible conflict with the United States.

Samsung to pay $118 million for infringing Netlist patents

The verdict follows a $303 million verdict against Samsung for Irvine, California-based Netlist in a related case last year.

Netlist also won $445 million from chipmaker Micron in May in a separate lawsuit over some of the same patents.

Spokespeople for Samsung and Netlist did not immediately respond to requests for comment on the Friday verdict. The jury also determined that Samsung’s infringement was wilful, which could lead to a judge increasing the award by up to three times.

Netlist sued Samsung in 2022, alleging that the Korean tech giant’s memory modules used in cloud computing servers and other data-intensive technology infringed its patents. Netlist said its innovations increase the power efficiency of memory modules and enable users to “derive useful information from vast amounts of data in a shorter period.”

Samsung denied the allegations, arguing that the patents were invalid and that its technology worked differently than Netlist’s inventions.

Samsung has also filed a related lawsuit in Delaware federal court accusing Netlist of breaking an obligation to offer fair licenses for technology required to comply with international standards.

Chinese hackers preparing for conflict

Chinese hackers are positioning themselves in U.S. critical infrastructure IT networks for a potential clash with the United States, a top American cybersecurity official said on Friday.

Morgan Adamski, executive director of U.S. Cyber Command, said Chinese-linked cyber operations are aimed at gaining an advantage in case of a major conflict with the U.S.

Officials have warned that China-linked hackers have compromised IT networks and taken steps to carry out disruptive attacks in the event of a conflict. Their activities include gaining access to key networks to enable potential disruptions such as manipulating heating, ventilation, and air-conditioning systems in server rooms or disrupting critical energy and water controls, U.S. officials said earlier this year.

Adamski was speaking to researchers at the Cyberwarcon security conference in Arlington, Virginia. On Thursday, U.S. Senator Mark Warner told the Washington Post a suspected China-linked hack on U.S. telecommunications firms was the worst telecom hack in U.S. history.

That cyber espionage operation, dubbed “Salt Typhoon,” has included stolen call records data, compromised communications of top officials of both major U.S. presidential campaigns before the Nov. 5 election and telecommunications information related to U.S. law-enforcement requests, the FBI said recently.

Preparations against potential targets

The FBI and Cybersecurity and Infrastructure Security Agency are providing technical assistance and information to potential targets, the bureau said.

Adamski said on Friday the U.S. government has “executed globally synchronized activities, both offensively and defensively minded, that are laser-focused on degrading and disrupting PRC cyber operations worldwide.”

Public examples include exposing operations, sanctions, indictments, law-enforcement actions, and cybersecurity advisories with input from multiple countries, Adamski said.

Beijing routinely denies cyber operations targeting U.S. entities. The Chinese Embassy in Washington did not immediately respond to a request for comment.

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