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Micron Technology, a US-based semiconductor manufacturing company, is currently facing a lawsuit from South Korean firm Mimir IP for allegedly infringing on its patents. The lawsuit has been filed with the International Trade Commission (ITC) and the US District Court for the Eastern District of Texas.
Mimir IP, which has been referred to as a non-practicing entity or “patent troll,” acquired around 1,500 patents from SK Hynix in May and has used them to file lawsuits related to circuits, voltage measurement devices, and non-volatile memory devices. If Mimir IP wins the lawsuit, it could potentially receive up to $480 million in damages, and defendants may be required to sign licensing agreements with the company.
The practice of companies selling their intellectual property to patent trolls has become increasingly common in recent years. Major DRAM providers like Samsung, SK Hynix, and Micron Technology have all transferred their patents to non-practicing entities for strategic reasons. For example, Samsung sold patents to IKT, a patent troll connected to Samsung Display, while Micron transferred around 400 patents to patent troll Lodestar Licensing Group.
By moving their patents to holding companies like Mimir IP, these companies are engaging in proxy wars against their competitors. The competition among DRAM providers is fierce, and each company is leveraging patent trolls as a way to assert dominance in the market. By indirectly challenging their rivals through non-practicing entities like Mimir IP, these companies are able to gain an upper hand in the semiconductor industry.
The use of patent trolls as a strategic tool is becoming more prevalent in the technology industry as companies look for ways to gain a competitive advantage over their rivals. While it may seem counterintuitive at first glance that companies would sell their intellectual property rights rather than using them themselves
