Samsung to pay Nanoco $150 million to settle patent lawsuits

Samsung has agreed to pay $150 million to British nanotechnology company Nanoco Technologies to settle patent lawsuits over technology used in Samsung's LED televisions, according to Nanoco and an investor in its cases.

The settlement, which includes a license agreement and the transfer of certain patents, resolves litigation in the United States, Germany and China, according to a release from Chicago-based litigation funding firm GLS Capital.

Samsung and Nanoco told a Texas federal court on the eve of a trial last month that they had agreed to settle the dispute, but no terms were disclosed at the time.

Representatives for Samsung did not respond immediately to a request for comment.

Nanoco's quantum dots improve the backlighting of LED displays without the use of toxic heavy metals like cadmium. In 2020, Samsung sued, alleging that the Korean tech giant copied its technology after receiving samples during talks about a potential collaboration.

The Texas lawsuit said Samsung began incorporating Nanoco's technology into high-end QLED TVs launched in 2017 and launched in 2017.

In recent years, third-party funding of lawsuits has become more common, even though details about specific investments are rarely publicized. Critics such as the U.S. Chamber of Commerce have warned that the practice obscures who is driving lawsuits and promotes unnecessary litigation. Backers say it can promote justice and level the playing field.

Brian Tenner, CEO of Nanoco, said in a statement that GLS Capital has allowed us to pursue our claims on equal footing against a much larger adversary. Adam Gill, co-founder of GLS, said Nanoco would receive more than 60 per cent of the settlement's proceeds, but he didn't offer any additional details on their funding agreement. He said the firm was proud to have supported Nanoco in the dispute.

GLS subsidiary Celerity IP is also responsible for Taiwanese tech company Asustek Computer Inc's efforts to enforce its portfolio of 3 G, 4 G and 5 G wireless patents, according to Gill.