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Spansion files patent infringement suit against Samsung

Mon. November 17, 2008; Posted: 08:57 PM
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Nov 17, 2008 (San Jose Mercury News - McClatchy-Tribune Information Services via COMTEX) -- SPSN | Quote | Chart | News | PowerRating -- Sunnyvale-based Spansion, which makes computer chips for flash-memory devices, filed a federal suit today accusing South Korean electronics giant Samsung of infringing on Spansion's patented technology used in hundreds of millions of cell phones, digital cameras and other consumer products.

Spansion called it one of the largest patent-infringement cases ever filed because of the number of consumer devices affected.

Samsung executives could not be immediately reached for comment.

The suit and a related complaint Spansion lodged with the U.S. International Trade Commission seeks to bar products containing Samsung chips with the infringed technology from entering the United States. That amounts to "well over one hundred million mp3 players, cell phones, digital cameras and other consumer electronic devices" each year, Spansion executives alleged.

The suit also demands monetary damages, claiming "Samsung has built a worldwide business of approximately $7 billion annually based on the sale of infringing chips alone."

BertrandCambou, Spansion's chief executive officer, said the precise amount of financial harm his company has suffered is still being determined. But he said Samsung's improper use of Spansion's technology over several years has cost Spansion billions of dollars.

Cambou said his company has tried in the past to persuade Samsung to license Spansion's flash-memory chip technology, but those discussions went

nowhere.

Nonetheless, he said he would like to reach a settlement with Samsung that will resolve the legal dispute without a trial, which could take several years.

"We are still hopeful for an amicable resolution," Cambou said, adding that he hopes to license future technology to Samsung and "have a friendly business relationship with them."

Flash memory devices retain information for long periods, even when their power source is off. The relatively inexpensive devices typically store information in the form of an electrical charge. Spansion's suit claims Samsung infringed on its patent for so-called floating gates, which prevent the electrical charge from escaping and the information from being lost.

Contact Steve Johnson at sjohnson@mercurynews.com or 408-920-5043.

To see more of the San Jose Mercury News, or to subscribe to the newspaper, go to http://www.mercurynews.com. Copyright (c) 2008, San Jose Mercury News, Calif. Distributed by McClatchy-Tribune Information Services. For reprints, email tmsreprints@permissionsgroup.com, call 800-374-7985 or 847-635-6550, send a fax to 847-635-6968, or write to The Permissions Group Inc., 1247 Milwaukee Ave., Suite 303, Glenview, IL 60025, USA.

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