Micron agrees to pay Netlist $600 million to settle patent dispute

Netlist said on 6 October that Micron Technology had agreed to pay it $600 million over five years to settle their patent dispute and license its memory patents.

Micron’s $30 million quarterly licence payments

According to Netlist’s announcement, Micron is to make $30 million quarterly payments to Netlist, beginning in the fourth quarter of 2026 and ending in the third quarter of 2031. The payments total $600 million over the term. In return, Micron receives a five-year licence to Netlist’s patent portfolio.

The licensed portfolio includes patents covering server DIMMs and high bandwidth memory technologies. Netlist said the patent licence and settlement agreements also provide for the companies to settle and mutually release all pending legal proceedings between them.

Netlist chief executive C.K. Hong said the agreement “further validates the value of our AI memory technologies”. The valuation is his assessment of the deal. The stated payment terms set out what Micron has agreed to pay for the licence and settlement.

Netlist said it filed a Current Report on Form 8-K alongside the announcement. Its release also cautioned that the parties might fail to perform their obligations under the agreements or realise the benefits Netlist anticipated from them.

Netlist’s $445 million verdict against Micron

Netlist won a $445 million patent infringement verdict against Micron in a federal court in Marshall, Texas, in 2024, Reuters reported. That verdict preceded a further complaint by Netlist against the memory chip maker in September.

In September, Netlist brought an infringement complaint before the US International Trade Commission, asking it to bar imports of Micron chips used in AI computing products from Google, Nvidia and Broadcom.

AI Affairs previously reported Netlist’s bid for an import ban on Micron chips used in Google and Nvidia AI products. Netlist’s settlement announcement now says the two companies have agreed to release all pending legal proceedings between them.

In its announcement, Netlist warned that appeals could delay its collection of damages awarded in litigation, reduce those awards or overturn verdicts. It also identified the possibility that it might not collect substantial amounts previously awarded to it.

Netlist’s separate $421 million Samsung verdicts

The Micron agreement follows another settlement involving Netlist’s memory patents. Netlist settled a separate dispute with Samsung in August after winning $421 million in patent verdicts against the company in Texas, Reuters reported.