[DigitalToday intern reporter Seung-a Yoo] Kioxia Holdings' subsidiaries Kioxia and Kioxia America officially announced they had been ordered to pay about $229 million (about 330 billion won) in a U.S. patent lawsuit.

On Aug. 3 (local time), IT outlet ITmedia reported that the U.S. District Court for the Western District of Texas issued a judgment on July 31 ordering damages in the same amount, in line with a jury verdict. The jury had returned a verdict on July 16 finding Kioxia liable for about $229 million, and the court judgment confirmed the verdict as is.

The lawsuit was filed by U.S. satellite communications company Viasat on Nov. 29, 2021. Viasat argued that Kioxia infringed its patents related to technology that lowers error rates in NAND flash memory. The jury found that Kioxia's NAND flash memory products infringed Viasat's patented technology that reduces power consumption and improves reliability and lifespan. The patent at issue is U.S. Patent No. 8,615,700, covering forward error correction technology including parallel error detection in NAND flash memory.

Some claims were cancelled during review by the Patent Trial and Appeal Board (PTAB) on grounds they were not patentable, but claim 16, which became the focus of the lawsuit, was found valid. In December last year, the U.S. Court of Appeals for the Federal Circuit (CAFC) also upheld the PTAB's decision on the remaining claims, including claim 16, and the jury verdict followed after these procedures. The trial began on July 13, with Viasat finishing arguments on July 14 and Kioxia on July 15, and the jury delivered its verdict the following afternoon.

Kioxia Holdings strongly objected immediately after the ruling. The company said, "Viasat's claims and this ruling are completely unacceptable," and reaffirmed its plan to "pursue all legal measures available," including an appeal if necessary.

The lawsuit is also one example of patent disputes spreading across the NAND flash industry. Viasat has also filed a similar patent infringement lawsuit against Western Digital, drawing attention to the broader impact on the industry.

Kioxia Holdings drew a line, saying the impact on its business is limited. It explained the ruling does not affect the provision of products and services to customers.

Financially, it has already reflected a provision. Kioxia Holdings said it estimated potential costs and losses related to the lawsuit and booked about $229 million as a litigation provision in its first-quarter results for the fiscal year ending March 2027. It added it would make a separate announcement if any matter arises that requires disclosure.

On July 17, when news of the jury verdict was reported, Kioxia Holdings shares in Tokyo tumbled immediately after the open, hitting the daily down limit, and fell to less than half of the post-listing intraday high recorded in June.