Neonode Settles Patent Lawsuit with Samsung, Receives $15M-$20M Proceeds

Neonode expects to receive $15M-$20M in proceeds from a patent settlement with Samsung Electronics. The settlement relates to a lawsuit filed by Neonode Smartphone over alleged patent infringement by Samsung. The exact amount of the settlement is not disclosed, but Neonode has been informed of the anticipated range.

Neonode Inc. (NASDAQ: NEON) announced Wednesday that it expects to receive between $15 million and $20 million in net proceeds from a patent settlement between Samsung Electronics and an unrelated third party. The settlement resolves a lawsuit filed in June 2020 by Neonode Smartphone LLC, a subsidiary of Aequitas Technologies LLC, against Samsung Electronics regarding alleged infringement of patents that Neonode had assigned to Aequitas in 2019.

Neonode, though not directly involved in the litigation, is entitled to 50% of any net proceeds from the settlement under the terms of the May 6, 2019 Assignment Agreement between Neonode and Aequitas. 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 stated it continues to evaluate tax implications and other financial factors that may affect the final amount.

The United States District Court for the Western District of Texas dismissed the case on September 2, 2025, following the settlement between Aequitas Sub and Samsung. Neonode’s Board of Directors has not yet made any decisions regarding how the settlement proceeds will be used.

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.

References:

[1] https://www.investing.com/news/stock-market-news/neonode-to-receive-up-to-20-million-from-samsung-patent-settlement-93CH-4222920