Shares in Nanoco (NANO) jumped 39 per cent after the company reached a settlement in its long-running litigation case with Samsung (KR:005930).
Nanoco, which makes cadmium-free quantum dots used in infra-red sensors and TVs, had been pursuing intellectual property infringement cases against Samsung in both the US and German courts. A trial was due to begin in the US today (6 January) but a stay was agreed after the two sides entered into a ‘no-fault settlement’.
A “binding agreement” with the South Korean electronics manufacturer is due to be signed within the next 30 days, Nanoco said.
Samsung had initially worked with Manchester-based Nanoco on a project to develop cadmium-free quantum dots using the latter’s intellectual property, but it terminated the agreement back in 2015. Nanoco subsequently sued after Samsung launched TVs using quantum dot technology without a licensing agreement.
In a note published last year, broker Peel Hunt said any potential award from a ruling in Nanoco’s favour was likely to be “in the hundreds of millions”. Assuming a “very conservative” award of $10 per TV, the 26mn TVs Samsung sold using quantum dot technology since 2015 translated into a $260mn (£219mn) claim on lost revenue, the broker said.
Nanoco’s shares jumped to 59p, giving the company a market capitalisation of £144mn.
