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Sat, May 28, 2022 | 16:42
Tech
Samsung downplays effect of Nvidia's lawsuit
Posted : 2014-09-10 15:17
Updated : 2014-09-10 20:37
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By Yoon Sung-won

BERLIN ― Samsung Electronics downplayed the potential impact of Nvidia's patent-infringement lawsuit on the sales of its new Galaxy Note smartphones.

"Though we need to review the legal details more thoroughly, we do not think the lawsuit will pose a serious and immediate threat to sales of our new smartphones," said an official at Samsung Electronics on the sidelines of the IFA trade fair.

"It is not a case new to the company, and we hadn't suffered from serious problems regarding our new products in the past," the official added.

Nvidia, a U.S.-based graphics chip and mobile processor maker, filed a complaint with the U.S. International Trade Commission (ITC) in Washington, D.C. against Samsung Electronics and Qualcomm on Sept. 4, arguing that the two have infringed on seven of its patents related to graphic processing unit (GPU) technology.

In the complaint, Nvidia is seeking to prohibit Samsung Electronics and Qualcomm from selling the latest Galaxy smartphones and tablets that use either Samsung Electronics' Exynos or Qualcomm's Snapdragron processors in the U.S. market.

Nvidia's first patent-infringement lawsuit came only one day after Samsung Electronics' "Unpacked" event on Sept. 3 in Berlin, where it showcased the fourth version of its Galaxy Note phablet series.

"Following a thorough review of the complaint, we will take all measures necessary against Nvidia's claims," Samsung said in a statement.

Sales of Samsung's latest smart devices such as the Galaxy Note 4 and Galaxy S5 smartphones, as well as its Galaxy Tab S and Galaxy Note Pro tablets, can be blocked in the U.S. market if the ITC decides in favor of Nvidia.

Nvidia also said in the complaint it has been talking to Samsung about a licensing agreement since 2012, without success. It added that the electronics giant continues to gain enormous profits from selling its smart devices while delaying licensing negotiations and shifting blame to its GPU technology providers such as Qualcomm.

"Samsung repeatedly said that this was mostly their suppliers' problem. Without licensing Nvidia's patented GPU technology, Samsung and Qualcomm have chosen to deploy our intellectual property without proper compensation to us. This is inconsistent with our strategy to earn an appropriate return on our investment," said David Shannon, executive vice president and chief administrative officer at Nvidia, in a post on the company's blog on Sept. 4.

Despite its top-notch GPU technology, Nvidia's mobile processor Tegra has been criticized for its lack of compatibility and consequently, has failed to steal significant market share from Qualcomm.

"Cases like this continue to happen as graphic technologies have become more important in smart mobile devices," another source from Samsung Electronics said. "From a different point of view, this can be seen as another proof of the company's success in the global market."

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