Samsung Wins Major Legal Victory Against MPEG LA in Patent Dispute
In a significant legal victory, Samsung has been granted all its requested relief by Justice Crane in a summary judgment. The ruling follows a breach of contract case against MPEG LA, a patent management company.
Samsung sued MPEG LA for breach of contract and breach of the implied covenant of good faith and fair dealing. The case, which went through all of discovery with Samsung's claims intact, ended with MPEG LA not bringing any counterclaims.
The dispute centered around MPEG LA's attempt to reduce Samsung's royalties by amending a pool agreement without adhering to proper voting procedures. Justice Crane ruled that MPEG LA breached its contract with Samsung by paying only half of the agreed royalties. Samsung was awarded more than $25 million in damages for this breach. Additionally, the court declared that MPEG LA may not withhold Samsung's future royalties based on the purported amendment. Samsung was also awarded future royalties that were being withheld due to the disputed amendment.
The ruling by Justice Crane in the New York Supreme Court has provided Samsung with substantial relief. It not only compensates Samsung for past damages but also ensures that it will receive its full royalties in the future. This decision sets a precedent for contract enforcement in the tech industry, particularly regarding patent management companies like MPEG LA.
