Yesterday, a trade judged ruled that NVIDIA violated three separate patents, all relating to GPUs held by Samsung. While this is just the beginning of the legal battle between the two companies, Samsung has landed the first round victory in a match guaranteed to go the full twelve rounds.
These findings will now go to a full review by the International Trade Commission which has the legal authority to block products from coming into the United States. No matter what the ITC decides to do, NVIDIA has vowed to appeal this ruling, arguing that the patents held by Samsung are just dust collectors used only for predatory patent cases just like this.
The irony in this case is that this ruling is being handed down in a retaliatory suit brought by Samsung. About a year ago NVIDIA brought suit against Samsung, alleging that Samsung violated its rights following failed licensing talks. The International Trade Commission claimed no rights were violated, a ruling that NVIDIA has vowed to appeal.
This case is part of a broader strategy by NVIDIA to bring in income from other areas besides its sale of graphics chips. While NVIDIA’s graphics chips are quite popular, it has had a hard time penetrating the enormous processor market. Licensing royalties is an area it thought could bring in more income, claiming that other companies, like Samsung, are using their patented chip designs without Nvidia’s permission. So far this new strategy looks like it is only bringing NVIDIA headaches.
This legal battle is very far from over. Aside from the appeal NVIDIA has already pledged, Samsung has brought a civil suit against NVIDIA which will be heard in Virginia this upcoming January. Get your popcorn ready, this fight is going to be a long one.
Source: Bloomberg
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