Spansion Patent Loss to Samsung Will Stand, ITC Says

Spansion Inc.’s loss to Samsung Electronics Co. in a patent-infringement case over flash-memory chips will stand, the U.S. International Trade Commission said in a posting on its web site.

The six-member commission said it would not review an October finding by ITC judge Charles Bullock that Samsung didn’t violate Spansion patent rights, according to a posting on the Washington-based agency’s website.

Spansion claimed that Suwon, South Korea-based Samsung infringed its patent on flash memory, used to store images and music on portable electronics, to “unjustly enrich Samsung by many hundreds of millions of dollars.” Spansion also named Samsung customers, including Research In Motion Ltd., Apple Inc. and Lenovo Group Ltd.

Spansion fell 3 cents to $20.14 at 4:30 p.m. in New York Stock Exchange composite trading after earlier trading at $19.46.

Spansion, based in Sunnyvale, California, filed the complaint in November 2008, seeking to ban the chips from the U.S., saying the only way to block the components is to prevent the computers, music players and devices that use the parts from being sold in the U.S.

Samsung, Asia’s biggest maker of semiconductors, had agreed in 2009 to pay Spansion $70 million to end the dispute. That agreement was rejected by a U.S. judge who was presiding over Spansion’s bankruptcy. Spansion, a former unit of Advanced Micro Devices Inc., filed for Chapter 11 protection from creditors in March 2009, and emerged from bankruptcy in May 2010.

Samsung has patent-infringement claims against Spansion at the ITC, with the judge scheduled to release his findings Feb. 28. Spansion filed a second ITC case against Samsung in September; no trial date has been set.

Today’s case is In the Matter of Certain Flash Memory Chips and Products Containing the Same, 337-664, U.S. International Trade Commission (Washington).

To contact the reporters on this story: William McQuillen in Washington at bmcquillen@Bboomberg.net

To contact the editor responsible for this story: Larry Liebert at lliebert@bloomberg.net.

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