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Liverpool Echo
Liverpool Echo
World
Jon Robinson

Samsung to pay $150m to Runcorn firm after legal battle

A Runcorn technology firm is to be paid $150m by Samsung after a long-running legal battle.

Nanoco will receive the money as part if a no fault settlement with the electronics giant which was announced at the start of the year.

The Cheshire firm had been suing the South Korean group in Texas after it alleged that its QLED televisions used the company’s technology without permission.

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A trial had been due to start on Friday, January 6, but the two parties reached a no fault settlement.

Following the announcement last month, shares in the Manchester company surged by almost 50% in early trading to their highest point since 2016.

However, after the company's latest update, its share price has been slashed by over 26% to its lowest since April 2022.

Chairman Chris Richards said: "This has been a long and hard battle for Nanoco.

"The outcome is remarkable, given the relative scale of Nanoco and Samsung.

"The settlement value is almost three times our own low case damages model; settling now avoids the risks associated with further litigation and the adverse impact from the time value of money in an appeals process that would have extended for years.

"Even more importantly, it validates Nanoco's core IP, which we will continue to defend vigorously.

"In deciding the allocation of the net proceeds, the Board will balance any investment needs of Nanoco's growing organic business with a firm intention to deliver a material return of capital to shareholders."

Chief executive Brian Tenner added: "Today marks the start of a new chapter for Nanoco.

"We have successfully validated our core IP against one of the world's biggest electronics companies, who were advised by one of the most expensive law firms in the world. Others operating in our space should take note.

"We therefore remain vigilant to other potential infringement activity, as well as opportunities to pro-actively deliver new licence agreements.

"The confirmation of the validity of our IP is already encouraging more commercial interest in Nanoco as a supplier of leading edge nano-materials.

"We have also generated a transformational amount of value for our stakeholders, whilst providing the funding for investment in the business.

"We have done this while transforming Nanoco and positioning ourselves for significant organic growth in the near term. Most importantly, we have a foundation on which to focus on the organic business as we continue to build on the significant positive momentum achieved in the last few years."

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