Times Article6 Jan 2023 15:04
A small Manchester-based technology company is in line for a nine-figure windfall after the South Korean electronics giant Samsung agreed to settle a long-running court case.
A trial between Samsung and Nanoco had been due to start in a Texas court this afternoon but confirmation came hours before that the pair had agreed a “no fault” settlement. Legal teams for Samsung and Nanoco will spend the next 30 days thrashing out the terms of a formal deal.
Had the trial gone ahead and Nanoco prevailed, some in the City speculated that it might have been awarded upwards of $500 million. With Samsung’s settlement having reduced the risk of an even more protracted legal battle, however, and the possibility that a jury might not have found in its favour, Nanoco’s eventual payout is expected to be much less than those earlier estimates.
Still, the settlement was seen as a victory for Nanoco in the eyes of the stock market and its stock rose by as much as 70 per cent in morning trading in London. At midday the shares were up 46 per cent at 62p, valuing the business at £200 million.
Nanoco sued Samsung on Valentine’s Day in 2020, having spent five years building its case, which alleged that Samsung’s QLED televisions used its technology without permission.
The technology in question comprises quantum dots, tiny particles, a fraction the width of a human hair, that if hit with energy emit light. Essentially, they make images appear crisper on screens.
Historically, the only way to make the dots on a large scale was by using cadmium, a toxic heavy metal. Nanoco’s founder, Nigel Pickett, had done some work into cadmium-free quantum dots and in 2007 the company partnered with Samsung, which was looking at ways to avoid using the metal in its products. The companies worked together for six years before Samsung broke off the partnership in 2013.
Nanoco has said that it was taken aback when Samsung brought out its range of SUHD, now called QLED, televisions 18 months or so later, since when it has sold millions of them. Nanoco convinced a litigation funder to back its claim and its lawyers at Mintz are, chief executive Brian Tenner has claimed, “working for a discounted fee”.
As well as the court case in Texas, Nanoco had filed lawsuits against Samsung in China and Germany. It is unclear what the status of these cases is now, although intellectual property settlements are typically global.
A stock market announcement from Nanoco said that further details of the settlement would be included in the “final binding agreement” expected within the next month.
Samsung did not immediately respond to a request for comment.
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