Samsung, Novartis, NuVasive: Intellectual Property

By Victoria Slind-Flor - Oct 29, 2010 4:01 AM PT

Samsung Electronics Co. agreed to settle a patent-infringement case before the U.S. International Trade Commission over its flash-memory chips used in Apple Inc.’s iPhone and Research In Motion Ltd.’s BlackBerry.

ITC Judge Theodore Essex said he will delay by 30 days a ruling that was scheduled for yesterday on whether Samsung violated patents owned by closely held BTG International Inc. The companies named in the case, including Samsung, Apple, RIM and Dell Inc., sought time to complete “a joint motion to terminate the investigation based on settlement agreement,” according to the order on the ITC’s website. The ITC must approve the settlement.

BTG had been seeking an order to ban U.S. imports of products containing Samsung Nand flash-memory chips, which store songs or pictures on portable electronics, because they may have infringed the company’s patents. BTG’s patents relate to ways of programming and reading flash-memory cells that store more than a single bit of information per cell, called “multi-level cell,” according to the original complaint.

The company targeted products that are made in China, Hong Kong and Taiwan and then sold in the U.S. Those electronics include Apple’s iPhone, iPod music player and MacBook Air notebook computer; RIM’s BlackBerry Storm mobile phone; Sony Corp.’s digital cameras, Vaio computers and MP3 players; and Suwon, South Korea-based Samsung’s mobile phones, camcorders, computers and MP3 players, according to the complaint.

Telephone and e-mail messages left for Samsung and BTG about the ITC’s announcement weren’t immediately returned.

BTG, which doesn’t make any products, also is seeking unspecified cash compensation in a civil lawsuit filed in federal court in Marshall, Texas. That case has been put on hold pending the outcome of the ITC investigation.

The ITC is tasked with protecting U.S. markets from unfair trade practices by using its power to ban imports of products that violate U.S. patents. Unlike a civil court, the Washington- based agency has no authority to impose royalties on violators.

Also targeted in the case are computers by Asustek Computer Inc. and Lenovo Group Ltd., and flash-memory cards by PNY Technologies Inc. and Transcend Information Inc.

BTG is based in West Conshohocken, Pennsylvania.

The case is In the Matter of Certain MLC Flash Memory Devices and Products Containing Same, 337-683, U.S. International Trade Commission (Washington).