Background of the Dispute
After nearly 15 years of legal disputes, Infineon Technologies and Qimonda’s insolvency administrator have finally reached a conclusive settlement. Infineon has agreed to pay €800 million to resolve the long-standing conflict. This dispute hinged on the valuation of memory business assets spun off from Infineon to create Qimonda in 2006. Once a global leader in memory chip manufacturing employing 13,500 people worldwide, Qimonda’s operational life was brief.
Legal Journey of Qimonda
Qimonda made its debut on the New York Stock Exchange in August 2006, only to file for insolvency by January 2009. The legal proceedings began in 2010, focusing on claims that Qimonda’s balance sheet was underfunded during the spin-off. The insolvency administrator alleged that the transferred memory business was undervalued, leading to a dispute over reimbursement for the share value discrepancy.
Settlement Approval and Financial Recovery
In January 2024, a court-appointed expert’s report suggested a negative value for the contributed business units. Both parties objected to this assessment, leading to intense negotiations. Infineon eventually agreed to pay €753.5 million to Qimonda’s insolvency estate, accounting for a previous partial settlement in 2014. The settlement was approved by Qimonda’s creditors’ committee and Infineon’s management and supervisory boards, bringing Infineon’s total payments to the Qimonda estate to around €1 billion.
Impact of Qimonda’s Patent Portfolio
Qimonda’s creditors have recovered €1.2 billion in total, including revenues from Qimonda’s extensive patent portfolio. Covering semiconductor, computer, and telecommunications technologies, these patents played a crucial role in the insolvency proceedings. Despite pre-insolvency licensing to major industry players, the validity of these licenses was contested, especially considering German insolvency law’s impact on Qimonda’s US patents. Ultimately, the patent portfolio generated approximately €100 million in licensing revenues and was sold to Infineon through an international sales process.
