One of the curious twists in this legal fight is that Samsung, while countersuing Nvidia, also sued a Richmond, Virginia-based company called Velocity Micro, a user of Nvidia’s graphics chip.
If you recall, Velocity Micro is the firm that rolled out one of the early Android-based e-readers called “Cruz.” That was back in 2010. Velocity Micro today still remains a small boutique company.
Now, Samsung’s countersuit, filed in Virginia, focuses on eight patents. Nvidia is alleged to have violated six. Velocity is alleged to have violated all eight.
Why on earth Samsung is going after Velocity Micro was a mystery to me, because it’s hard to believe Velocity Micro is the only company using Nvidia’s Tegra. When asked, Nvidia spokesman told us that Tegra customers “include many automobile manufacturers, as well as IT companies like Acer, Asus, LG, etc.”
At least, in Nvidia’s mind, the company has played fair in its IP strategy, as it starts with a negotiation.
The company said that with Samsung, “Our licensing team negotiated directly with Samsung on a patent portfolio license.” “We had several meetings where we demonstrated how our patents apply to all of their mobile devices and to all the graphics architectures they use.”
The negotiation stalled, according to Nvidia, with Samsung repeatedly saying that this was mostly their suppliers’ problem.
Nvidia is said to be seeking the courts’ judgment to confirm the validity, infringement, and value of the company’s patents. A legal victory for Nvidia, if it happens, will put the Santa Clara, Calif. company among big boys in the chip industry milking its IP. Nvidia is said to have been in IP talks with several companies, including Samsung, but it has not unveiled any new licensing deals.