Netlist, Inc. (OTCQB:NLST) received a joint public‑interest comment from the U.S. Patent and Trademark Office and the U.S. Department of Justice on December 1 2025, supporting the company’s U.S. International Trade Commission complaint filed on November 30 2025 against Samsung, Google and Super Micro. The comment backs Netlist’s request for exclusion and cease‑and‑desist orders that would direct U.S. Customs and Border Protection to block the import of the respondents’ DDR5 memory modules and high‑bandwidth memory (HBM) products that allegedly infringe six of Netlist’s patents.
Netlist’s complaint targets the core memory components that power next‑generation artificial‑intelligence and data‑center workloads. By securing the joint comment, Netlist gains a stronger footing in the ITC’s expedited process, potentially accelerating the issuance of injunctive relief that could prevent infringing products from reaching U.S. customers. The comment also signals the federal government’s willingness to enforce U.S. patent rights in high‑growth technology sectors.
The joint comment is the first time the USPTO and DOJ have issued a combined statement in an ITC investigation, underscoring the Administration’s commitment to protecting American innovation. Netlist’s CEO, C.K. Hong, said the filing “reflects the Administration’s strong support for American innovation and the enforcement of U.S. patent rights, particularly through injunctive remedy.” The comment could also pave the way for licensing agreements or settlements with the respondents, providing Netlist with a new revenue stream beyond its traditional product sales.
Netlist’s business model has increasingly focused on monetizing its intellectual property. The company has secured substantial jury verdicts and settlements in past patent disputes, and the current ITC action aligns with that strategy. While Netlist’s product‑sales gross margin has historically hovered around 3%, its IP‑monetization activities generate higher‑margin income and can offset the pressure on its hardware business. The company’s market capitalization stands at $193 million, and its stock has fallen 21.55% year‑to‑date, reflecting broader market volatility and the challenges of operating in a highly competitive memory market.
The joint comment strengthens Netlist’s position in the ongoing legal battle and could accelerate the enforcement of its patents, potentially leading to licensing agreements that would provide a more stable revenue stream. The action also signals to investors that Netlist’s IP portfolio remains a valuable asset, even as its product sales face margin compression and competitive headwinds.
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