Samsung Electronics at risk of Wi-Fi patent battle with Caltech

Samsung Electronics Co.’s headquarters in Seoul [Photo by Lee Seung-hwan]

Samsung Electronics Co. faces the possibility of paying billions of dollars in compensation for a patent infringement related to wireless networking technology to the California Institute of Technology (Caltech).

According to industry sources on Wednesday, the U.S. Patent Trial and Appeal Board recently dismissed three out of four filings by Samsung Electronics seeking invalidation against Caltech‘s patents. The remaining claim is still under review.

The patent conflict between Caltech and Samsung Electronics began following a dispute between Apple Inc., Broadcom Inc. and Caltech in 2016. Caltech filed a lawsuit against Apple and Broadcom in a district court in Los Angeles, alleging those companies infringed its data transmission patents. The court ruled in favor of Caltech in 2020 and the jury ordered Apple to pay $837.8 million and Broadcom to pay $270.2 million to Caltech in damages.

Based on the court order, in 2021, Caltech filed a patent infringement lawsuit against Samsung Electronics to the federal court for the Eastern District of Texas, accusing the South Korean company of unauthorized use of five Wi-Fi patents. Three of the patents claimed in the lawsuit against Apple were also applied to the case against Samsung Electronics, covering a wide range of products from smartphones, tablets and laptops to smartwatches and smart TVs.

In response, Samsung Electronics challenged the patents’ validity in November, while requesting the East Texas federal court that the court suspend the ruling until the results of the patent invalidation are available.

However, with the recent three dismissals of Samsung Electronics’ claims, Caltech’s rights over the patents are likely to be affirmed. Caltech also effectively won in the Apple lawsuit on Monday, adding more pressure on Samsung Electronics.

On Monday, the U.S. Supreme Court rejected appeals by Apple and Broadcom, upholding the lower court’s decision in favor of Caltech. In February 2022, Apple and Broadcom appealed to the Supreme Court, seeking a re-examination of the interpretation by the Federal Circuit Court of Appeals. As the Supreme Court did not accept their appeal, the two companies are now facing a ruling that will determine the amount of damages to be paid to Caltech, with the hope of a reduced compensation compared with the initial order that exceeded $750 million.

Industry insiders speculate that Samsung Electronics is likely to face a similar amount sought from Caltech, given they are arguing over similar patents. The Biden administration’s support for Caltech also poses a challenge for Samsung Electronics. According to media reports, prior to the court’s ruling, U.S. Solicitor General Elizabeth Prelogar urged the Supreme Court to reject Apple’s appeal.