Cerence settles patent dispute with Samsung for $49.5 million

Cerence Inc. (NASDAQ: CRNC) and Samsung Electronics have resolved their patent infringement disputes through a cross-license agreement that includes a $49.5 million payment to Cerence, according to a company statement.

The settlement concludes two separate patent infringement cases. Cerence filed its first complaint against Samsung Electronics Co. Ltd. and Samsung Electronics America Inc. in October 2023, alleging infringement of five patents. The company filed a second complaint in March 2024, alleging infringement of four additional patents.

Samsung responded with counterclaims in July 2024, asserting that Cerence's Assistant product infringed four Samsung patents. Samsung sought damages, including trebled damages, and legal costs. Cerence denied the allegations in September 2024.

The first case was scheduled for trial in October 2025, while the second case was set for April 2026. Both parties reached the settlement agreement on October 28, 2025, avoiding the need for trial proceedings.

Under the cross-license agreement, Samsung will make a one-time lump sum payment of $49.5 million to Cerence. The agreement resolves all patent disputes between the companies related to the contested technologies.

Cerence develops voice and artificial intelligence technologies for automotive and other applications. The settlement allows both companies to use each other's patented technologies under the cross-licensing arrangement.

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