Netlist Inc: Defending Innovation Against Goliaths of the Memory Chip Industry

Netlist Inc (NLST), a trailblazer in advanced memory solutions, is in a relentless fight to protect its intellectual property from infringement by some of the world's largest memory chip makers, whose sales reach tens of billions. Among these industry giants, SK Hynix stands out as a notable exception. As the third-largest memory producer globally, SK Hynix has maintained a collaborative relationship with Netlist, solidified by a licensing deal in 2021, which is up for renewal in early 2026. This partnership has been instrumental in the development of several cutting-edge technologies.

In the past year and a half, Netlist has secured significant legal victories. The company won two jury verdicts for willful infringement of its intellectual property, totaling $750 million. These victories underscore the robustness of Netlist's patent portfolio and its unwavering commitment to defending its innovations.

The battle is far from over. On August 18, 2024, Netlist will face Samsung in court over the infringement of Patent 912. This case is crucial as it addresses ongoing unauthorized use of Netlist’s technology. In early 2025, Netlist will take on Google in another pivotal case, with billions of dollars at stake. Google has allegedly been using Netlist’s IP in its servers since 2009, and a jury trial will determine the outcome.

Despite these victories, Netlist faces a formidable challenge from the Patent Trial and Appeal Board (PTAB). This administrative body has been used by large companies to challenge and invalidate patents, with a staggering 84% of patents under review being invalidated. Patent 912, particularly Claim 16, has withstood scrutiny and validation over a 14-year period across 5 ptab reviews and appeal and federal court reviews. In April of 2024, claim 16 was invalidated before crucial court cases involving the 912 patent. However in May of 2024 jury awarded Netlist $445 million against Micron for willful infringement of this patent. Samsung is up at bat in August of 2024. The invalidation of claim 16 of patent 912 (again after 5 ptab validations and 2 upper court validations) questionable timing raises serious concerns about the PTAB's impartiality and fairness.

To combat these challenges, Netlist has enlisted one of the best attorneys in the field, aiming to overcome the perceived injustices at the PTAB and ensure a fair trial process. The company’s determination to protect its intellectual property rights is commendable, especially given the significant financial and emotional toll such legal battles entail. While many patent holders might have folded under similar pressures, Netlist continues to fight, driven by the extensive investment and hard work its employees have poured into developing its groundbreaking technology.

If big companies were to license Netlist’s IP instead of willfully infringing upon it, Netlist’s stock price could be significantly higher, potentially reaching $50+. This underscores the value and importance of respecting intellectual property rights.

Call to Action

It is imperative to raise awareness about the challenges faced by Netlist and other inventors in protecting their intellectual property. We urge readers to share this article with media outlets and make politicians aware of the injustices being done to inventors. Reform at the PTAB is crucial. Netlist’s case against Google exemplifies the systemic issues: the last inter partes review (IPR) should never have been approved. How could this have been allowed? We question the PTAB’s decision, which we feel was fundamentally wrong. What motivates the PTAB to disqualify Netlist's patents?

Netlist is not a patent troll. It has invested tens of millions in developing and securing patents, only to see them invalidated while big tech companies exploit these innovations to generate tens of billions in revenue. If Netlist's IP was not valuable, why are district courts finding big tech companies willfully infringing and using unscrupulous methods to gain control of the IP?

To the leaders of big tech, do the right thing. Imagine if people came to your home and stole everything inside because they thought they could get away with it. Would you want your children to steal? Respect intellectual property and license it legitimately.

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Informational Disclaimer: The information provided in this article is based on publicly available sources and is intended for general informational purposes only. While efforts have been made to ensure accuracy, there is no guarantee that the information is free of errors or omissions. Netlist Inc and its affiliates are not responsible for any actions taken based on the information provided in this article.