Kioxia Ordered to Pay Viasat $229 Million Over Flash-Memory Patent Infringement
A US jury has ordered Japanese chipmaker Kioxia to pay $229 million to satellite communications firm Viasat, highlighting growing intellectual property risks in the flash-memory sector.
A federal jury in Waco, Texas, has ordered Japanese chipmaker Kioxia to pay $229 million to satellite-communications company Viasat. The Thursday verdict concludes that the chipmaker infringed on a patent covering specific computer memory technology.
Jurors determined that Kioxia’s flash-memory devices actively violate Viasat’s patent rights. The disputed technology is designed to enable these memory devices to consume less power while simultaneously improving their overall reliability and longevity.
Carlsbad, California-based Viasat originally developed these flash-memory improvements while designing error-correction systems for satellites. The company alleged that Kioxia incorporated error-correction technology functioning identically to its patented methods, which store data on transistors using electrical charges.
Kioxia denied the infringement allegations throughout the legal proceedings. The Japanese chipmaker argued that the patent in question was fundamentally invalid, though the jury ultimately rejected this defense and sided with the plaintiff.
This ruling underscores the financial vulnerabilities semiconductor manufacturers face regarding intellectual property disputes in global markets. For investors, a $229 million liability represents a material, unplanned financial hit that could impact near-term earnings. It may also prompt Kioxia to reassess its technology licensing agreements or underlying design protocols to avoid future litigation.
The verdict signals potential headwinds for the broader data-storage industry beyond a single company. Viasat has brought similar allegations against data-storage company Western Digital in a separate lawsuit that remains ongoing. This pattern suggests a coordinated legal strategy by Viasat to monetize its satellite-derived error-correction patents across multiple major hardware manufacturers.
Representatives for both Kioxia and Viasat did not immediately respond to requests for comment regarding the Thursday verdict. Market participants will now closely watch to see if Kioxia appeals the decision, seeks a post-trial resolution, or simply absorbs the financial cost.
