Samsung hit with $142M patent penalty after failing fair licensing talks
A recent patent dispute between G+ Communications and Samsung has highlighted the risks for companies refusing fair licensing terms. The case, heard in a Texas district court, resulted in a $142 million award after a retrial—more than double the original damages.
The ruling also reinforced that implementers must engage in good-faith negotiations over standard-essential patents (SEPs).
In January 2024, G+ Communications sued Samsung in Marshall, Texas. The claim accused Samsung of infringing three SEPs tied to the 5G telecommunications standard. A jury later found Samsung liable for violating two of the patents and initially awarded G+ $67.5 million in damages.
Judge Rodney Gilstrap ordered a retrial on damages after the jury confused 'running royalty' and 'lump sum' calculations. The second jury then raised the award to $142 million, equating to a potential $1.50 per-unit royalty. Following the verdict, Gilstrap directed both parties back to mediation to settle remaining disputes.
The case underscores that US district courts can be a powerful tool for SEP owners facing uncooperative implementers. Courts are now scrutinising whether companies negotiate in good faith, with potential consequences for those who do not. The ruling confirms that FRAND (fair, reasonable, and non-discriminatory) obligations apply to both patent holders and implementers alike.
The final award of $142 million marks a significant win for G+ Communications. It also sets a precedent for future SEP disputes, reinforcing that implementers must engage honestly in licensing talks. The decision may encourage more patent owners to pursue claims in US district courts when facing hold-out tactics.
