Samsung alleged to work with NPE in Polaris-Kingston case

Heck Ellis summarized the filing of Kingston in the Polaris' patent infringement suit, in which an interesting strategy utilized by Samsung was revealed.

In May 2015, Samsung and Polaris entered into an agreement under which the Korean company agreed to pay the WiLAN subsidiary 50% of the future purchase price of the Qimonda portfolio, up to €16 million ($17 million), should Polaris acquire the rights. (The following month, WiLAN announced it had purchased the Qimonda portfolio from then-owner Infineon for $33 million. Infineon had itself acquired the patents a few months earlier as part of a settlement agreement with Qimonda's insolvency administrator.).

In return for a licence to the Qimonda portfolio, Samsung agreed to “not challenge the ownership, validity, enforceability, novelty, obviousness, or utility of the Qimonda… patents, to not assist anyone adverse in interest to a Qimonda… patent, and to not dispute infringement of any Qimonda… patent”.
“Particularly pertinent to Kingston’s counterclaims,” under the terms of Samsung’s agreement with Polaris, the Korean company was given the right to specify 15 Qimonda patents and “discuss in good faith with Polaris either giving Samsung an exclusive licence to them or having Polaris file patent infringement lawsuits against specified, agreed-upon third parties”.

Polaris agreed to pay Samsung a royalty equal to five percent of Polaris’s gross revenues from licensing the Qimonda portfolio. Polaris owes Samsung royalties up to the amount Samsung paid to Polaris to assist its purchase of the patents from Infineon.

If substantiated, Samsung in essence control these patents through an NPE. It's deal with Polaris perhaps is more like a funding mechanism in exchange for such control.