Netlist is seeking exclusion and cease-and-desist orders that could restrict imports of infringing products into the U.S.
- The patents cover DDR5 RDIMMs and MRDIMMs used in data centers and high-performance computing.
- Netlist CEO C.K. Hong cited the company’s recent Samsung settlement as an industry benchmark for the value of its intellectual property.
- Micron previously won a major legal decision against Netlist when the Federal Circuit upheld the invalidation of five Netlist patents challenged by the chipmaker.
Micron (MU), Supermicro (SMCI) and HPE (HPE) shares traded lower Thursday after the U.S. International Trade Commission opened an investigation into whether their memory products infringe four Netlist (NLST) patents.
The investigation follows Netlist’s August complaint and covers patents related to DDR5 registered DIMMs (RDIMMs) and multiplexer registered DIMMs (MRDIMMs), memory technologies used in data centers and high-performance computing.
Netlist is seeking exclusion and cease-and-desist orders that could restrict imports of products found to infringe its patents.
SMCI stock was hardest hit among the cohort, down 3.4% at the time of writing, amid broader market weakness. MU stock fell over 1.7%, while HPE stock traded flat. On Stocktwits, retail sentiment around SMCI shifted to ‘bearish’ from ‘neutral’ territory over the past day, while sentiment around MU remained in the ‘bullish’ zone and sentiment around HPE trended in ‘bearish’ territory.
Netlist Escalates Micron Patent Fight
Netlist CEO C.K. Hong said the firm plans to continue pursuing companies it believes are using its intellectual property without authorization.
“The Samsung agreement established an important industry benchmark for the value of our IP,” Hong stated.
The Samsung agreement, reached in August, ended the companies’ long-running global patent dispute. Samsung received access to Netlist’s patent portfolio, while agreeing to supply Netlist with DRAM and NAND and purchase 10 million Netlist shares. The settlement followed two Texas jury awards totaling $421 million in 2023 and 2024.
Netlist’s latest ITC case against Micron involves different patents and remains unresolved.
NLST stock fell around 2% in morning trade amid broader market weakness and was among the top trending tickers on Stocktwits at the time of writing. Retail sentiment around the firm improved to ‘bullish’ from ‘neutral’ territory over the past day.
Micron Faces Multiple Memory Patent Disputes
Micron has also scored wins against Netlist. Earlier this month, the Federal Circuit upheld Patent Trial and Appeal Board decisions invalidating five Netlist patents challenged by Micron.
The latest ITC investigation does not mean the agency has found infringement. Netlist must still prove its claims, while Micron can challenge both infringement and patent validity.
Micron also faces a patent dispute with Yangtze Memory Technologies (YMTC) over NAND technology. A German court recently issued injunctions involving two German utility models, though the orders apply to covered products sold in Germany rather than imposing a global ban. Micron has appealed and disputes the findings.
Netlist’s claims focus on server memory, including DDR5 and HBM-related technology, while YMTC’s litigation centers on NAND flash.
MU stock has gained over 250% year-to-date and more than 530% in the last 12 months.
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