Curious re Samsung's sudden trial withdrawal22 Jan 2023 21:29
October Samsung earnings
Patents generally last for 20yrs
Samsung QD TVs have had very low earnings eg 2022 quarter - 18$ profit per TV. 0.25 KRW trillion earnings on 14.75trillion KRW income.
Increase in TVs going up 100m++ according to BT last presentation. 40m TVs, approx 2022.
So judgement for jury may have some speculation?
Edison, perhaps, predicting valuation is only for prospects ahead? Say, up to 2030.
So, Samsung prefer, it seems, only to avoid infringement and royalties (& China) versus their beneficial, persistent appeals.
Meanwhile Nanoco may have some doubts. Value of infringement from Edison style earnings from the past? How to assess future earnings. Organic, commercial earnings somewhat offset via 4 year expensive trials.
8 year average of, say, 80m TVs - with 2022 40m covered, breakeven - on, say, 50% margin, minimum…with double of 2022 $800m earning…8x$400m TV profit. 3.2B earnings. @5%payment max. $160m max!! Not good!
Infringement liability
"Make sure there is a real infringement and that the infringement is in a market in which your patent applies. In law, if a business infringes a patent, it is liable to pay damages to the patent owner, which will be based on the loss suffered by the owner"
So, 15 to 23/26 years (now or to appeal?) simply providing royalty to each TV?
Nought to do with earnings? "Net sales are the most common measurement for royalty payments. In a net sales license, the royalty rate is multiplied against the net sales of the invention. The most significant issue when negotiating net sales is what deductions should be included in the definition of net sales"
20m average annual for TVs sold since early start, say. (Above 50m today)
@10$ per TV (which folks mention). [Usually, 1% initially then move up to 5%] $1000 average net sales per TV @$10=1%
Thus, $200m/yr times 12 up to appeal. 8 otherwise.
Greater prospect for Nanoco challenge? Including Germany and China with injunctions.
Jury might observe simplicity of this. Net sales, as sold.
So, I presume, if liable 'based on the loss suffered by the owner', that BT is holding firm:)
Samsung observing some risk on infringement….So cancelling trial…they don't have much of a problem otherwise?
Lower shouldn't be too low, perhaps…:)
Sign In
Follow the stocks
