In this complaint, Lexar (Fremont, Calif.) — which is in the process of being acquired by Micron Technology Inc. — asserts that Toshiba's flash-memory chips and flash cards infringe upon Lexar's U.S. Patent Nos. 6,801,979, 6,397,314 and 6,978,342.

With this filing, Lexar requests that the ITC institute an immediate investigation against Toshiba based on the importation of the infringing NAND flash chips and flash cards.

Lexar has asked the ITC to grant all possible relief, including an exclusionary order, prohibiting the importation into the United States of Toshiba's chips and cards as well as products that contain Toshiba's NAND chips.

Further, Lexar has asked the ITC to issue a cease-and-desist order which could require retailers and distributors to remove from their shelves and destroy all products containing Toshiba's infringing NAND chips. If the complaint is accepted by the ITC, the ITC will institute a formal Section 337 investigation within 30 days.

The move follows a long and bitter legal battle between the companies.

The original case, heard in the Superior Court for the State of California, alleged that Toshiba invested $3 million in flash-card maker Lexar, and asked for and received a seat on Lexar's board in 1997. At the time, Toshiba received extensive confidential information, including Lexar's highly confidential patent applications, according to Lexar.

Lexar indicated that by 1997, Toshiba had allegedly "tried but failed to develop a reliable flash memory controller," according to the company. And unbeknownst to Lexar, Toshiba also had "top secret" internal plans to partner with rival flash-memory product maker SanDisk Corp.

Last year, Lexar, a manufacturer of digital media products, claimed a legal victory over Toshiba (Tokyo). It also said that a jury awarded the company over $380 million in damages as part of the legal victory against Japan's Toshiba. A day after finding Toshiba liable for $380 million in a flash-memory patent suit, a jury awarded Lexar an additional $84 million in punitive damages in the case.

In October, a court affirmed a previous jury verdict that awarded Lexar over $465 million in damages in its suit against Toshiba.

However, Toshiba last year was granted a new trial in Lexar Media’s suit over alleged claims of misappropriation of trade secrets and breach of fiduciary duty against the Japanese company. As a result, the jury award in the original trial totaling $465 million against Toshiba has been vacated, according to the Japanese company.

There was insufficient evidence to support the damages awarded by the jury, according to Lexar. The court also denied Toshiba’s motion for judgment notwithstanding the verdict.

By: DocMemory
Copyright © 2023 CST, Inc. All Rights Reserved