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NLST Full text Reporting from Trial:
Part 1 (more in comments) https://www.law360.com/ip/articles/1837286/-secret-docs-show-samsung-breached-netlist-deal-jury-told
By Craig Clough; Law360 (May 14, 2024, 10:34 PM EDT) -- An attorney for Netlist told a California federal jury Tuesday during opening statements in its breach of contract suit against Samsung that "secret documents" will show that the technology giant's executives gleefully sought to crush Netlist by cutting off its supply of crucial computer memory products.
Jason G. Sheasby of Irell & Manella LLP, who represents chipmaker Netlist, told the jury that Netlist Inc. reached a deal in 2015 to license its 190 computer technology patents to Samsung Electronics Co. Ltd. in exchange for Samsung supplying it with NAND and DRAM memory products at a competitive price.
Part 2:
"The deal was a huge breakthrough for Netlist, as Samsung completely dominates the worldwide supply of NAND and DRAM products, which Netlist desperately needed for its business, and Samsung had refused for a time to sell the parts to Netlist, Sheasby said. Netlist is a small company, with about 120 employees, while Samsung boasts over 30,000 workers, according to Sheasby.
But about 18 months into the deal, Samsung arbitrarily said it would no longer honor the agreement and significantly slowed down its deliveries, Sheasby said.
"When we complained, they cut it to zero, the record will show, because they already had access to our patents, and no longer needed to keep their commitment under the agreement," Sheasby said. He also said Samsung "knew it was infringing" Netlist's patents, and that the jury will see the "secret records in which they candidly admit this."
Part 3:
"The jury will also see emails and communications in which Samsung executives called Netlist "morons," and that they were "laughing out loud" with "glee" at the disruptions Samsung was causing for Netlist, Sheasby said.
Samsung not only stole Netlist's patents that were licensed under the deal, but it also shared the technology with other companies, Sheasby said.
Samsung executives also "openly admitted to governmental agencies that they wanted access to Netlist's patents so they could use them without permission," Sheasby said.
Darin W. Snyder of O'Melveny & Myers LLP, who represents Samsung, told the jury that the deal between the companies did not guarantee Netlist to an unlimited supply of NAND and DRAM products, and that the slowdown Netlist experienced in deliveries was a result of worldwide disruptions in the market, which is a common occurrence."
Part 4
"Snyder likened the shortage in 2017 and 2018 to the toilet paper shortage experienced at retail stores during the outbreak of COVID-19, suggesting that there simply wasn't enough product available on the market to meet Netlist's orders on time, even though Samsung prioritized Netlist and did its best to keep the supplies coming.
Snyder also said that Samsung "never would promise an unlimited supply" due to "frequent shortages in the memory product market." He also said the deal did not include a minimum requirement of deliveries or delivery obligations.
Neither attorney told the jury how much money in potential damages is at stake in the trial.
The trial is just one arm of a yearslong legal battle between the two companies, which has also seen action in Texas federal court, the Patent Trial and Appeal Board and U.S. Patent and Trademark Office."
Part 5:
In the instant action, Netlist filed suit against Samsung in 2020, alleging the two companies entered a joint development and license agreement on Nov. 12, 2015, which allowed Samsung to supply NAND and DRAM products to Netlist on Netlist's request at a competitive price and to pay Netlist $8 million in engineering fees.
Beginning in 2017, Samsung declined to fulfill all of Netlist's forecasts, requests and orders for NAND and DRAM products, putting some on backlog and rejecting others, according to the suit.
On May 27, 2020, Netlist sent a letter claiming Samsung breached the agreement, and on July 15, 2020, sent another letter terminating the deal.
Both parties eventually moved for summary judgment, and U.S. District Judge Mark C. Scarsi granted partial summary judgment in favor of Netlist's claims in 2021 but held that Netlist can't recover consequential damages and that any damages must be determined by a jury.
Part 6:
A jury in December 2021 determined Netlist was owed no damages, but in October, a split Ninth Circuit reversed Judge Scarsi's summary judgment finding. The majority found the contract was ambiguous and remanded it to the district court for a finding on whether extrinsic evidence creates a genuine issue of material fact as to the agreement's meaning, which ultimately resulted in the current trial.
Netlist won a $303 million verdict in the Eastern District of Texas in 2023 after a jury found Samsung infringed five of Netlist's patents, although the PTAB has since found those patents are invalid.
Chun K. Hong, the president, CEO and co-founder of Netlist, took the stand Tuesday as the trial's first witness and said the companies were previously at odds before striking the 2015 deal and bringing "global peace" where they agreed to "lay down their weapons."
"A year and a half into the agreement, they reverted back to their ways as if we didn't have a contract," Hong said.
Part 7
Samsung started to significantly reduce its NAND and DRAM deliveries in 2017, with Netlist asking for $100 million worth but only receiving $21 million, Hong said. The deal with Samsung allowed Netlist to significantly expand its operations, but after Samsung pulled back on deliveries Netlist eventually lost all of its new customers, he said.
Netlist initially projected that it would reasonably reach $300 million in annual revenue within a few years under the Samsung deal, but due to the deliveries evaporating, they ended up in the red, Hong said.
Snyder was still cross-examining Hong when the proceedings ended for the day, but during that time, Snyder tried to establish that Netlist was a company in financial distress when it reached the 2015 deal, as Hong said it had only been profitable for one year over the last two-plus decades.
The trial is scheduled to resume Thursday morning.
Part 8
Netlist is represented by Jason G. Sheasby, Michael Harbour, A. Matthew Ashley and Lisa S. Glasser of Irell & Manella LLP.
Samsung is represented by Darin W. Snyder, Marc F. Feinstein and Amy R. Lucas of O'Melveny & Myers LLP.
NLST What did Mr Ji have to say in the past? See the bottom highlighted part.
https://sih-st-charts.stocktwits-cdn.com/production/original_572921652.jpg
NLST Today Sheasby filed this in the Scarsi Court because now Samsung wants to sneak this guy into court on Wednesday for live testimony, while trying to exclude Netlist. Netlist has been trying for months to subpoena this guy, Samsung still playing games, but Sheasby is on it. See all the docs in comments.
https://stocktwits.com/Durango24k/message/572921124
NLST I saw this today and didnt post it, but look at the bottom Sheasby had filed a Ex Parte Application to Enforce Trial Subpoenas because Samsung was not providing the Korean information so they could be served. They only gave a local Southern California address. These are two important witnesses. It appears from what I see at the bottom, today the motion was denied. See my next post.
https://sih-st-charts.stocktwits-cdn.com/production/original_572921111.jpg
https://stocktwits.com/Durango24k/message/572921111
Here's Doc 106 where they said they were going to file, but they didnt according to Gilstrap https://sih-st-charts.stocktwits-cdn.com/production/original_572914135.jpg
yes i see, pardon me for being thorough lol !!! peace my brother, not trying to out do you........
I only included the first few paragraphs to let readers know what the filing was about.
I put the link in there so people could read the whole thing.
Case 2:22-cv-00294-JRG Document 120 Filed 05/14/24 Page 2 of 2 PageID #: 6961
Accordingly, the Court hereby ORDERS Micron to file an updated Notice of Final
Election of Invalidity Theories, Prior Art References/Combinations, and Equitable Defenses
stating in no uncertain terms whether it will be asserting any invalidity defenses or equitable
defenses and, if so, what defenses it will be asserting. Micron shall file this updated Notice no later
than Thursday, May 16, at 5:00 p.m. CST.
signed by strap 5-14-24 but it wont lt me copy that part......
https://storage.courtlistener.com/recap/gov.uscourts.txed.216365/gov.uscourts.txed.216365.120.0.pdf
Case 2:22-cv-00294-JRG Document 120 Filed 05/14/24
https://storage.courtlistener.com/recap/gov.uscourts.txed.216365/gov.uscourts.txed.216365.120.0.pdf
The Court issues this Order sua sponte. On April 22, 2024, Micron filed its Notice of Final Election of Invalidity Theories, Prior Art References/Combinations, and Equitable Defenses (the “Notice”). (Dkt. No. 106.) In the Notice, Micron stated that it “provide[s] the following list of invalidity theories, prior art references and combinations, and equitable defenses that they continue to assert against Netlist, Inc. (“Plaintiff”).” However, Micron did not provide a list within or attached to its Notice.
Instead, Micron stipulated that “based on the Patent Trial and Appeal Board’s institution of IPR2023-00203 for U.S. Patent No. 7,619,912 and IPR2023-01141 for U.S. Patent No. 11,093,417, Micron will no longer pursue invalidity defenses in this action (C.A. No. 2:22-CV-00294-JRG) that the patent claims subject to the instituted IPRs are invalid based on grounds that were raised or reasonably could have been raised in the IPRs.”
This was posted by Stokd on ST. I don't think it's been posted here.
https://smartphonemagazine.nl/en/2024/05/15/netlist-inc-accuses-samsung-of-malicious-supply-cut-in-court/#google_vignette
Good read Striper. It really makes you wonder about the motives of the other two Judges on the panel who had to add their own interpretation of the contract which they pulled out of thin air, and which was totally contrary to the plain language of the contract. Too much corruption in our judicial system I would say!
Netlist, Inc. v. MICRON TECHNOLOGY TEXAS, LLC (2:22-cv-00294)
District Court, E.D. Texas
https://www.courtlistener.com/docket/64861663/netlist-inc-v-micron-technology-texas-llc/?order_by=desc
For anyone tht happens to follow bottom swing plays I added a chat . I realize not many follow but if you do and want to discuss a stock go here . https://investorshub.advfn.com/boards/board.aspx?board_id=42983
NLST Here is a link to the October 17, 2023, 9th Circuit BOC Appeal decision by the 3 Judges, Smith, Amon and Desai (the dissenting Judge.) It's worth the time to read, especially the dissenting Judges opinion. All this led to todays trial. https://sih-st-charts.stocktwits-cdn.com/production/original_572891816.jpg
https://cdn.ca9.uscourts.gov/datastore/memoranda/2023/10/17/22-55209.pdf
Gamestop had the Roaring Kitty
May be NLST can have a Barking Dog!!!
lol !!! they can't even reverse engineer what their stealing.
Samsung Has Reportedly Failed To Pass HBM3E Memory Qualification Tests Set By NVIDIA
https://wccftech.com/samsung-has-reportedly-failed-to-pass-hbm3e-memory-qualification-tests-set-by-nvidia/
I'm hoping its time to let the dogs lose :+)
hows that dog feel'n ? i trust your keeping him healthy......
I'd say some of them are buying up 6.02% today
lets see if these shorts start buying back if we win the boc and micrap next week, some one said 9 days on average vol. we win the 2 and vol should be above average in that time frame !!! almost forgot, strap will be tacking on rates after boc, hmmm..
just getting back, yes i would love to see us pull one of those moves, we'd be falling out our chairs !!!
NLST is next you say?
What catalyst do we have here as far as short %
Yeah, I looked at AMC a few days ago when it fell a little below $3 and wanted to buy some but I would've had to sell some NLST in order to make the buy, so I declined. Kinda wished I had done it now. That's OK though because I still believe NLST is going to treat us good.
9 days for shorts to cover on average volume.
This GME and AMC move is very bullish for us. NLST is next!
robcobb
2m
$NLST At this point I don’t know what evidence Judge Scarsi will allow or disallow. I know that if he would allow the evidence that Judge Gilstrap would not allow in the Samsung 463 case ,where Samsung cut off Nlst supply in order to try to bankrupt Nlst.At the 463 pre -trial Jason pointed out that Samsung would get Nlst patents if they went bankrupt! I wouldn’t have to hear any more than that if I were a juror in today’s first day of trial to rule in Nlst favor.There wouldn’t be any need for four days of trial for me.Nlst needs justice starting today. Next Monday will be Microns turn. I am very excited about attending and witnessing justice for Nlst!
NLST For those of you that have never read the JDLA agreement between Netlist and Samsung, here's a link to it. The JDLA starts on page 709 (on the docs) and goes to page 720.
https://storage.courtlistener.com/recap/gov.uscourts.ca9.337169/gov.uscourts.ca9.337169.10.5.pdf
one way or another its going to be an interesting week !!!
Our time is here! I still think Micron takes a deal… or should I say NLST takes a deal with micron…might only be 50M a year but it will pay legal expenses..
BOC should double us back to 2.50.. as we lost half our value when it was remanded..
The CMF is the tell.. when they let this up it could be 2021 again…
yes judge scarsi, we ripped off nlst right from the beginning. that was our plan. https://sih-st-charts.stocktwits-cdn.com/production/original_572683251.jpg
NLST Keep in mind the deposition testimonies I posted today (I believe) are being objected by Samsung. I included their objections in each post. Here is the filing from Sheasby regarding these exhibits. Will they be accepted by the court? I dont know. I'm not a legal expert. I post for informational purposes only, but they are worth reading in my opinion. In my opinion, they should be allowed. Netlist agrees. See comments for 2nd page of fling.
https://stocktwits.com/Durango24k/message/572686014
NLST Han, Kyuhan - Samsung VP of Device Solutions Deposition - See comments. Reposting this for easier reading
https://stocktwits.com/Durango24k/message/572683111
well it looks to be reversing.. so I hope it runs a buck or so..
And wow 3 months in Europe
Well gdog, I will like it better in about .07 more.
I was tempted to double down at the open today, but chicken out.
This one looks like it could exploded very fast.
I need some money for my 3 months trip to Europe.
NLST KIm, Ho- Jung - Samsung Employee Depostion - See comments
https://stocktwits.com/Durango24k/message/572679412
NLST Kim, Lane - Samsung Employee Deposition. See comments.
https://stocktwits.com/Durango24k/message/572678200
NLST Jeon, Byungyeop - Samsung Employee Testimony -See comments.
https://stocktwits.com/Durango24k/message/572676952
NLST A different witness from Samsung. See comments.
https://sih-st-charts.stocktwits-cdn.com/production/original_572673961.jpg
https://stocktwits.com/Durango24k/message/572673961
NLST It seems there are some Exhibits of deposition testimonies filed today, with objections and responses. I'll include the interactions in the comments. Interesting to say the least.
https://sih-st-charts.stocktwits-cdn.com/production/original_572670678.jpg
https://stocktwits.com/Durango24k/message/572670678
U have to be liking UVIX
Can we have a GameStop moment sometime soon????
I am always hold the wrong stocks for to long!
I did own GME two years ago, made some decent $$$$, but now I own NLST.
thx, i know all my options, but i'm not typing anything credit or debit into a pc.
its one helluva mess to clean up that much i'll tell ya. when i went to social security to sign up for retirement they asked me if i ever was on ss, i said no and asked why, they just told me dont worry about it we'll take care of it. all the other incidents i had to personally take care of. never again !!!!
As far as that goes, you could probably load up a pre-paid debit card with say $40, and then use that to open up the Pacer account. But whatever.
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