Netlist Wins $445 Million in Damages from Micron for Patent Infringement

In a recent court ruling, Micron has been ordered to pay a whopping $445 million in damages to Netlist for infringing on their patent rights. This California-based memory technology company, known for designing high-performance SSDs and memory subsystems, has successfully proven that Micron willfully violated their patents. The judge has the authority to potentially triple the damages, which could result in over $1 billion in penalties for Micron.

The patents at the center of this legal battle are US Patent numbers 7,619,912 and 11,093,417. The first patent describes a memory module decoder, while the second patent is related to the data buffering of memory modules. Both patents focus on methods for enhancing the performance and capacity of DRAM memory modules in computer systems. The jury awarded Netlist $425 million for the infringement of the first patent and $20 million for the infringement of the second.

This is not the first time that Netlist has emerged victorious in a patent infringement lawsuit. In 2023, the company was granted $303 million in damages when Samsung was found guilty of infringing on their patents. However, the litigation in that case is still ongoing. In April, the US Patent Trial and Appeal Board ruled that the disputed patents were invalid.

During the trial, Micron argued that the ‘912 patent held by Netlist had been deemed invalid by the PTAB and stated their intention to appeal the decision. Despite the hefty $445 million in damages, Micron is not in financial distress. The company’s enterprise memory products have been experiencing significant revenue growth, with the latest Q2 financial report showing a substantial increase in quarterly revenue. With revenue climbing to $5.82 billion, up from $4.73 billion in the previous quarter and $2 billion more than the same period last year, Micron’s financial prowess remains strong.

The legal battle between Netlist and Micron underscores the importance of protecting intellectual property rights in the technology sector. The significant damages awarded to Netlist serve as a warning to companies that engage in patent infringement. It is crucial for businesses to respect and uphold the rights of innovators to foster a competitive and innovative environment in the industry.