a very interesting post from YMB
thanks to Frank
Read carefully the motion filed by google on Friday: they are asking the judge to confirm that they have not infringed the Netlist 912 Patent from 2009 until February 2021 (when the patent was cobfirmed reissued to Netlist).
Google also said that they had agreed with Netlist on all other issues (other than claim 16). That means:
Google implicitly agrees that they have to pay licence fees to Netlist as of February 2021.
Google, range of figures):
2 - 10 Mio server
multiplied with
8 to 32 modules per server
multiplied with
20- 38 USD per Module divided by
3 (3 year turn over of server) makes
something between:
Minimum: 107 Mio USD
Maximum: 4,053 Mio USD per year for Netlist from Google.
Being conservative: a couple of hundred Mio USD per year.
Again: this is WORST CASE, if the google motion was granted. But after having read the full court files and the opinions of more knowledgeable people at Reddit and here, unlikely that google will succeed.
Thus: take these couple of hundred Mio per year and multiply with 12 year! Add 10 % interest (default in such cases per annum) and add the costs for Netlist lawyers. And google does not settle, but if the Netlist motion from Friday is granted, google risks treble damage in the trial and with the partial summary judgment granted for Netlist, there is no way out for Google.
Despite the good rise of the stock price over the last 6-7 week, we still have an amazingly good chance:risk ratio for this stock, were alone the worst case outcome would easily justify the current stock price and where the much more likely positive outcome would send this stock above 50 USD.
But again: google implicitly admitted in their motion of Friday that they are liable to pay licence fees as of February 2021. And it won’t be Google only who must realize that. The time of free lunch of Netlist intellectual property is over. SK Hynx was first to realize this, google did implicitly acknowledge so on Friday and more will come !
This is much more than only the google case!
