NEON - Neonode tumbles as patent invalidated in a case against Samsung

2023-07-10 11:24:25 ET

Neonode ( NASDAQ: NEON ) plunged 34% after a judge on Friday ruled that one of its patents in a case with Samsung ( OTCPK:SSNLF ) was invalid.

U.S. District Judge Alan Albright said at a hearing that the only asserted claim of the '879 patent was indefinite, meaning that it was invalid, according to Michael D. Cohen, director of research at MDC Financial Research LLC.

"Having what we believe is to be its most important patent invalidated seems pretty bad," Cohen, who owns one put option on Neonode ( NEON ), told Seeking Alpha in an interview on Monday.

Neonode ( NEON ) didn't immediately respond to Seeking Alpha email request for comment.

Claims for Neonode's other main patent, the '993, were ruled invalid by the Patent Trial and Appeal Board in June of last year. Neonode  ( NEON ) appealed  that ruling to the US Court of Appeals for the Federal Circuit.

Neonode ( NEON ) sued Samsung and Apple ( AAPL ) in 2020 for alleged infringement of the 879 and 993 patents, which are both related to mobile device user interfaces, specifically touchscreen finger-swiping technology.

The Friday court defeat comes after Neonode had some court wins earlier this year and late last year.

More on Neonode

• Neonode: Sophisticated Technology, Weak Business
• Neonode jumps after patent victory over Google
• Neonode gains after winning patent trial against Samsung

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