Neonode Settles Patent Lawsuit with Samsung, Expects $15-$20 Million in Proceeds

Neonode Inc. expects to receive $15-20 million in net proceeds from a patent lawsuit settlement with Samsung Electronics. The settlement is related to a case filed by an unrelated third party, Aequitas Technologies LLC, and Neonode is entitled to 50% of the proceeds due to its assignment of certain patents to Aequitas in 2019. The company's board has not yet decided how to use the expected proceeds.

Neonode Inc. (NASDAQ: NEON), a technology company specializing in touch technologies, has announced that it expects to receive between $15 million and $20 million in net proceeds from a patent lawsuit settlement with Samsung Electronics Co. Ltd. [1][2]. The settlement, which was finalized on September 2, 2025, resolves a case filed by Aequitas Technologies LLC, an unrelated third party, against Samsung Electronics.

The lawsuit, filed in June 2020, alleged infringement of certain patents previously assigned by Neonode to Aequitas in 2019. Neonode, while not directly involved in the litigation, is entitled to 50% of the net proceeds from the settlement under the terms of the May 6, 2019, Assignment Agreement between Neonode and Aequitas [1].

The anticipated $15-20 million figure represents Neonode’s share after deducting a brokerage fee related to the original assignment, along with estimated legal fees, taxes, and other expenses. The company continues to evaluate tax implications and other financial factors that may affect the final amount [1][2].

The United States District Court for the Western District of Texas dismissed the case following the settlement between Aequitas Sub, a subsidiary of Aequitas Technologies LLC, and Samsung Electronics [1]. A separate patent infringement case brought by Aequitas Sub against Apple Inc. remains pending in the United States District Court for the Northern District of California [1].

Neonode’s Board of Directors has not yet made any decisions regarding how the settlement proceeds will be used [1][2]. The company is currently assessing the potential uses of the funds, which could include reinvestment in research and development, operational improvements, or other strategic initiatives.

References:
[1] https://www.prnewswire.com/news-releases/neonode-announces-anticipated-financial-proceeds-from-patent-lawsuit-settlement-302545756.html
[2] https://www.investing.com/news/stock-market-news/neonode-to-receive-up-to-20-million-from-samsung-patent-settlement-93CH-4222920