Samsung Electronics received a jury verdict ordering payment of more than 274 billion won in the first trial of an organic light-emitting diode (OLED) technology patent lawsuit held in U.S. federal court in Texas.
According to Reuters on the 3rd (local time), a jury in the U.S. District Court for the Eastern District of Texas found that Samsung Electronics infringed two OLED-related patents owned by Pictiva Displays. The jury ordered Samsung Electronics to pay $191.4 million in damages.
The party that filed the suit is Pictiva Displays, an Ireland-based patent licensing nonpracticing entity (NPE). Pictiva argued that virtually all OLED-equipped devices, including Samsung Electronics' flagship Galaxy smartphones as well as TVs, computers, and wearable devices, unlawfully used its patented technologies.
The patents at issue (U.S. Patent No. 6448716/6894434) relate to pixel driving circuit technology that improves OLED display image quality and lifespan. They are known as core technologies that compensate the voltage of each pixel in an OLED panel to keep overall screen brightness uniform and reduce "burn-in."
During the trial, Samsung Electronics flatly denied Pictiva's claims. It argued forcefully that it did not use the technology, and even if it had, the patents owned by Pictiva are invalid because their inventiveness is negated by prior art.
But the Texas jury accepted Pictiva's argument. Pictiva's legal team succeeded in persuading the jury that Samsung Electronics' devices clearly infringed its patent rights.
Immediately after the verdict, Pictiva said, "This decision demonstrates the strength of Pictiva's intellectual property (IP)," welcoming the outcome.
Pictiva is a subsidiary of the patent licensing company Key Patent Innovations. Key Patent Innovations does not make or sell products directly; it generates revenue through lawsuits or negotiations by purchasing or licensing patents.
In the industry, such corporations are called nonpracticing entities (NPEs) or patent assertion entities (PAEs). Because they seek settlements or damages through patent litigation rather than contributing to technological innovation, they are more often referred to by the negative nickname "patent trolls."
The U.S. Government Accountability Office (GAO) defined in a report that "NPEs acquire patents without intent to practice products or services and often generate revenue through patent infringement litigation."
Pictiva's patent portfolio is based on fundamental patents secured in the early 2000s during the commercialization of OLED technology by the German lighting and semiconductor giant Osram. Key Patent Innovations purchased these patents from Osram and, through its subsidiary Pictiva, filed suit against Samsung Electronics.
In particular, the Marshall Division of the U.S. District Court for the Eastern District of Texas, where this trial was held, has traditionally been called a "mecca of patent litigation" favored most by patent trolls, as it often issues rulings favorable to patent holders. With patent-holder-friendly juries and swift proceedings, the Marshall Division at one point handled a quarter of all patent lawsuits worldwide. However, major U.S. media reported that in recent years, due to changes in Supreme Court precedent, some cases have been dispersed to the Western District of Texas (Austin, Waco).
The jury verdict delivered this time is a finding of fact by the first-trial court. The judge's final ruling on legal issues and the appeals process remain. Samsung Electronics has consistently argued during the proceedings that the patents are invalid. Given this, experts said Samsung Electronics is expected to challenge the jury's verdict in the first trial and immediately proceed with an appeal.
The appeal will proceed at the U.S. Court of Appeals for the Federal Circuit (CAFC) in Washington, D.C., which handles patent cases. The CAFC will rigorously reexamine legal issues such as the validity or invalidity of the patents, independent of the first-trial jury's findings. Including the appeal, the final outcome appears likely to be confirmed only after years of protracted courtroom battles.