Micron Owes Netlist $445 Million in Texas Memory Patent Suit

Micron Technology Inc. owes its competitor Netlist Inc. $445 million for infringing protected technology in its semiconductor memory products, a jury determined.

Micron and its units Micron Technology Texas LLC and Micron Semiconductor Products Inc. willfully infringed US Patent Nos. 7,619,912 and 11,093,417 by manufacturing and importing memory products, according to a jury verdict Thursday in the US District Court for the Eastern District of Texas.

C.K. Hong, Netlist’s CEO, said in a statement the verdict underscores the value of the company’s technology.

“Juries fundamentally understand that the intentional unauthorized use of intellectual property created by others is improper,” Hong said.

The majority of damages—$425 million—were based on the ‘912 patent, which was declared invalid by an administrative tribunal in April.. The Patent Trial and Appeal Board knocked out two other Netlist patents earlier that month after petitions by Micron and Samsung Electronics Co. Ltd, who is not a party in this case. The administrative tribunal is currently reviewing the validity of the ‘417 patent, which accounted for $20 million of the verdict

Micron disagreed with the verdict, a spokesperson said in a emailed statement.

“Micron will appeal the jury’s verdict and will defend the U.S. Patent Office ruling that the ’912 patent is invalid,” a Micron spokesperson said.

• Netlist sued Micron in August 2022 alleging the company infringed the ‘912 patent, and later asserted the ‘417 patent.
• Netlist said Micron’s semiconductor memory products, including DRAM and DIMMs, use similar methods as the protected technology covering memory module decoders and memory module with data buffering.
• Netlist said it contacted Micron in April 2021 about licensing the patents for use, but the company declined.
• Micron in April requested a stay in proceedings in the dispute or to sever the ‘912 patent from the case because of the PTAB’s decision on the the patent’s invalidity and the administrative tribunal’s pending decision for the ‘417 patent.
• The court declined the motion later that month, noting how soon the trial would take place and ruling a stay would be prejudicial to Netlist. Judge Rodney Gilstrap said it wasn’t certain the PTAB’s ruling for the ‘912 patent would be affirmed on appeal and the decision doesn’t affect the validity of the ‘417 patent.

McKool Smith and Irell & Manella LLP represent Netlist. Winston & Strawn LLP and Ward Smith & Hill PLLC represent Micron.

The case is Netlist, Inc. v. Micron Technology Texas LLC et al, E.D. Tex., No. 2:22-cv-00294, verdict filed 5/23/24