Telecoms giant secures $287m verdict against Samsung
Dutch telecommunications company KPN proves breach of contract over patent rights | Samsung makes a bid to transfer the case to the US District Court for the Eastern District of Texas.
Dutch telecommunications giant, Koninklijke KPN(KPN), secured a $287 million jury verdict in a breach of contract dispute against Samsung Electronics.
Judge Brad Morin, who delivered the verdict in the Judicial District Court in Harrison County on February 23, 2024, awarded the full requested amount in damages following four days of trial and just over three hours of deliberation.
Under the agreement, KPN granted Samsung certain rights to its extensive patent portfolio in exchange for future payment conditions.
However, KPN alleged that Samsung had failed to honour these agreed-upon payment terms, prompting the telecommunications company to seek damages for the breach of the contract.
Post-verdict, Samsung opted to seek jurisdiction in the US District Court for the Eastern District of Texas.
The tech giant argued that the case presented a substantial federal question and Samsung's post-trial removal petition is currently pending.
Case background
The dispute, initiated in September 2022, centred around a licence agreement signed by the two parties in 2016.
KPN filed a lawsuit the same year against Samsung in the US District Court for the Eastern District of Texas, Marshall Division, alleging that the South Korean company unlawfully used KPN's technology for data transfer in smartphones.
KPN accused Samsung’s Galaxy S4 and S5 products of infringing, however, the pair settled soon after.
In September 2022, KPN then filed a lawsuit against Samsung, asserting breach of contract and declaratory judgment claims, alleging that Samsung materially breached the parties' prior agreement.
Samsung responded in March 2023, by filing a motion to dismiss KPN's lawsuit but this was denied after a hearing.
Commenting on the win, Lexie White, a Houston-based partner at Susman Godfrey and lead counsel for KPN, was “pleased” with the jury’s verdict requiring Samsung to fully honour its promise to KPN.
“The litigation was fast moving and hard fought, with new facts unfolding mid-trial. We are grateful to the jury for carefully considering the complex issues involved in this case."
KPN was represented by White, Tamar Lusztig, Hunter Vance, and Eliza Finley from Susman Godfrey.
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