Background
Viasat Inc., a satellite communications and technology company best known for its broadband internet satellites, developed a patented architecture for error correction in flash memory storage. U.S. Patent No. 8,615,700, titled “Forward Error Correction with Parallel Error Detection for Flash Memories,” covers a system that uses parallel error-detection circuits to more efficiently identify and correct bit errors as NAND flash cells degrade over time — a fundamental challenge in flash storage reliability and longevity. Viasat originally developed the underlying error-correction methodology for use in satellite communications systems before recognizing that the same techniques could extend the useful life of consumer and enterprise flash memory.
In 2021, Viasat filed suit against Kioxia Holdings Corporation and its U.S. subsidiary Kioxia America, Inc., alleging that Kioxia’s NAND flash memory products — widely used in smartphones, SSDs, and enterprise storage — infringed Claim 16 of the ‘700 patent. Kioxia is one of the world’s largest NAND flash memory manufacturers, having been spun out of Toshiba Memory in 2019. A five-day jury trial ran July 13–15, 2026 in the Waco courthouse of the Western District of Texas before Judge Alan Albright, known as one of the busiest patent trial judges in the country.
The Court’s Holding
On July 16, 2026, the jury returned a verdict in favor of Viasat, finding that Kioxia’s flash memory products infringed Claim 16 of U.S. Patent No. 8,615,700. The jury awarded Viasat $229,025,021 in damages, structured as a running royalty covering past infringement through March 30, 2026. The verdict did not include a determination of willfulness, meaning enhanced damages under 35 U.S.C. § 284 are not automatically available, though Viasat may still seek pre- and post-judgment interest as well as an ongoing royalty for infringement after the verdict period.
Kioxia issued a statement calling the verdict “completely unacceptable” and announcing it would “pursue all available legal remedies,” including post-trial motions for judgment as a matter of law (JMOL) and appeal to the Federal Circuit. The case remains before Judge Albright for post-verdict proceedings, and Kioxia’s JMOL motion could reduce or eliminate the award if it succeeds in arguing that the infringement finding or damages calculation was unsupported by substantial evidence.
Key Takeaways
- A $229M verdict underscores the value of error-correction IP in the flash storage era. As flash memory has become a commodity hardware layer, the enabling technologies — particularly for reliability and lifespan under heavy write cycles — retain enormous licensing value. Satellite and aerospace companies that developed foundational signal-processing IP now have a powerful monetization argument in storage technology markets.
- Claim 16 of the ‘700 patent is the operative claim. The specifics of what Claim 16 covers (the parallel detection architecture) will be central to any JMOL or Federal Circuit appeal. Kioxia will likely argue either non-infringement (design-around) or invalidity arguments that were rejected at trial.
- W.D. Tex. (Waco) remains the dominant patent litigation venue. Despite post-TC Heartland venue challenges and Congressional scrutiny of Judge Albright’s docket concentration, Waco continues to produce large jury verdicts in technology patent cases. The running-royalty structure here also allows Viasat to continue collecting royalties on ongoing Kioxia sales if the verdict survives appeal.
- Post-trial motions and Federal Circuit review are very likely. A $229M verdict on a single patent claim will almost certainly be appealed. Kioxia’s ability to design around the patent while the case is on appeal could limit the financial exposure if the case is resolved years from now.
Why It Matters
The Kioxia verdict is one of the largest patent damages awards of 2026 and highlights a growing trend of cross-industry patent monetization: companies that develop patented signal-processing or error-correction techniques in one sector (satellite communications, in Viasat’s case) are increasingly finding that those same patents read on ubiquitous semiconductor and storage technologies. Flash memory reliability has become a strategic concern as AI data centers, electric vehicles, and edge computing devices push NAND flash to its endurance limits — and error-correction patents like Viasat’s sit at the center of that reliability challenge.
For the flash memory supply chain, the verdict signals that foundational reliability IP — even when developed outside the storage industry — can command nine-figure royalties. Kioxia, which competes directly with Samsung, Micron, SK Hynix, and Western Digital in a market defined by razor-thin margins, faces significant financial pressure if the verdict survives post-trial proceedings. The case also serves as a reminder that parties to long-pending patent disputes (this case was filed in 2021) face substantial litigation uncertainty as large verdicts become more common in Waco.