Samsung to pay Spansion $70m as part of the settlement
Flash memory chip maker Spansion and Samsung Electronics have settled a patent-infringement suit regarding Spansion’s floating gate technology. As part of the settlement, Samsung will pay Spansion $70m.
The companies have also exchanged rights in their patent portfolios in the form of licenses. The patent settlement is subject to approval by the bankruptcy court because Spansion filed for Chapter 11 bankruptcy protection in March.
Last November Spansion filed two patent suits against Samsung with the International Trade Commission and in the US District Court of Delaware, seeking the exclusion from the US market of mp3 players, cellphones, digital cameras, and other consumer electronic devices containing the flash memory components. In January, Samsung filed a patent infringement complaint in Japan against Spansion Japan seeking both injunctive relief and damages for its patents.
John Kispert, president and chief executive at Spansion, said: Spansion is a technology innovator in Flash memory with valuable IP and this agreement is a significant milestone in the company’s strategy to further develop its IP licensing business. In addition, the agreement strengthens our cash position to help Spansion emerge from the Chapter 11 process a stronger and more focused company.