SanDisk Issues Barrage of Patent Litigation
The suit seeks to ban import of the infringing products and compensation for damages. Of the 25 firms named in the lawsuit, 15 were accused of infringing on two other patents, hence the second Wisconsin claim. Lori Barker, senior director of investor relations for SanDisk, said the company chose the Wisconsin courts because of their reputation for expediency. "The Wisconsin courts are generally viewed as fairly quick to put cases through," she said. "And of course all these companies do business in Wisconsin."
In the first suit filed in the United States District Court in the Western District of Wisconsin, two U.S. patents, 6149316 and 6757842, are at the center of the lawsuit. The ITC and second Wisconsin suits concern five patents, 6426893, 6763424, 5719808, 6947332 and 7137011. In general, the patents in contention cover design of non-volatile memory controllers, and cover the way devices operate, such as encryption and wear leveling, among other functions.
"I think the important thing here is we believe these folks are infringing and we now have a standard license they are welcome to take from us so that they won't be infringing," Barker says, referring to a patent license SanDisk is offering the defendants.
She says the company expects to obtain a trial in the Wisconsin courts in less than 12 months. The ITC case generally requires a longer time horizon, she says. "We expect to receive a patent hearing claim in approximately nine months and, if successful, obtain an exclusion order in 15 to 18 months," barker says.
With many of the 25 companies doing business outside the U.S., Barker says keeping an eye on foreign infringement is in the company's best interest. "SanDisk's revenues have been growing very nicely outside the U.S. so it's very important to us to make sure global infringers are brought to bear," she said. "It's a new wave of IP enforcement for the company."
While the breadth and scope of the lawsuit took some in the industry by surprise, Barker says she hasn't seen any of the press surrounding the suit, and noted Wall Street released three notes upon the announcement, which Barker says were "largely positive." Barker declined to speculate on any impending legal action.