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Diablo wins round against Netlist but legal fight isn’t over

Diablo Technologies claimed a “decisive victory” in the lawsuit brought by Netlist over technology used in Diablo’s Memory Channel Storage architecture. However, Netlist vowed to fight on with its patent suit against Diablo and partner SanDisk.

Netlist charged Diablo with patent infringement, and gained an injunction in January preventing Diablo from shipping chips used in SanDisk ULLtraDIMM storage products.

A federal jury in the U.S. District Court for the Northern District of California Wednesday ruled that there was no breach of contract or misuse of trade secrets. Both sides agree on that. But while Diablo maintains the jury confirmed its sole ownership and inventorship of the 917 patent, Netlist says the patent issue is not settled. The 917 patent was issued for a method of programming a load reduction dual inline memory module (LRDIMM).

Netlist Claims the jury ruled in its favor on two trademark counts Wednesday. It also may appeal the parts of the verdict that went in Diablo’s favor.

Even without an appeal, the issue remains unsettled. A briefing is scheduled to be completed by April 3 with an oral hearing before a judge tentatively scheduled for April 10 to determine the effect of the jury verdict on the preliminary injunction granted Netlist in January.

Diablo is expected to file a motion to remove that injunction because of Wednesdays’ verdict.

“We are extremely pleased with the jury’s verdict today,” Diablo CEO Riccardo Badalone said in a statement released by the vendor. “We look forward to getting back to serving our customers and delivering on our exciting Memory Channel Storage roadmap.”

Netlist released a statement indicating it still intends to win the patent case:
“Netlist intends to vigorously pursue its patent suit against SanDisk and Diablo related to the ULLtraDIMM. The verdict in the trade secret case has no effect on the patent case. The company also intends to request that the court correct the verdict as to the breach of contract count, and to pursue all available appeals.”

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