IRVINE, Calif., Dec. 7, 2017 /PRNewswire/ -- Netlist, Inc.
(NASDAQ: NLST), today confirmed more details on the Initial
Determination ("ID") received from the United States International
Trade Commission (ITC) in its investigation of SK hynix RDIMM and
LRDIMM enterprise memory products. The public version of the
ID was issued by Administrative Law Judge (ALJ) Bullock on
December 5, 2017.
According to the ID, ALJ Bullock determined that Netlist's five
asserted patents are valid, and that Netlist satisfied the economic
domestic industry requirement. Further, with respect to the
public interest issue, the ALJ determined that Netlist complied
with its reasonable and non-discriminatory (RAND) licensing
obligations. However, the ALJ found that SK hynix does not
infringe the asserted patents, and for this reason concluded there
was no violation of section 337 of the Tariff Act.
"While we are pleased with the ALJ's positive determinations as
to validity, domestic industry, and public interest, we are
disappointed in the initial findings on infringement. Netlist will
challenge the ALJ's recommendations on infringement and hopes to
prevail on this issue in the final determination," said Netlist's
Chief Executive Officer, C.K. Hong.
"We will also build on the positive findings of this ID in the
second ITC action we filed against SK hynix with new, stronger
patents."
As part of the regular procedure at the ITC, the parties are in
the process of submitting an additional briefing to the
Commission. The Commission's role is to review the ID, and
reach a Final Determination (FD) which may affirm, set aside, or
modify the ID. The FD is currently scheduled to be issued by
March 14, 2018.
The ITC instituted the second investigation into SK hynix's
RDIMM and LRDIMM products on November 28,
2017, based on Netlist's U.S. Patent Nos. 9,606,907, and
9,535,623. Netlist expects this investigation will proceed
quickly, with a trial likely in mid-2018. In the meantime,
Netlist expects a preliminary infringement ruling in January, 2018,
from the court in Munich, Germany,
where Netlist has asserted patent claims related to those in the
ITC proceedings. Similar claims have also been asserted in
China, with a trial expected in
the second half of 2018.
About Netlist, Inc.
Netlist is a leading provider of
high-performance modular memory subsystems serving customers in
diverse industries that require superior memory performance to
empower critical business decisions. Flagship products NVvault® and
EXPRESSvault® enable customers to accelerate data running through
their servers and storage and reliably protect enterprise-level
cache, metadata and log data by providing near instantaneous
recovery in the event of a system failure or power outage.
HybriDIMM™, Netlist's next-generation storage class memory product,
addresses the growing need for real-time analytics in Big Data
applications and in-memory databases. Netlist holds a portfolio of
patents, many seminal, in the areas of hybrid memory, storage class
memory, rank multiplication and load reduction. Netlist is part of
the Russell Microcap® Index. To learn more, visit
www.netlist.com.
Safe Harbor Statement
This news release contains
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. Forward-looking
statements are statements other than historical facts and often
address future events or the future performance of Netlist.
Forward-looking statements contained in this news release include
express or implied statements about the outcome of the Final
Determination. All forward-looking statements reflect management's
present expectations regarding future events and are subject to
known and unknown risks, uncertainties and other factors that could
cause actual results to differ materially from those expressed in
or implied by any forward-looking statements. Netlist can provide
no assurance regarding the outcome of the final review by the
Commissioners at the ITC, and if the final determination concludes
that Netlist's patents were not violated or that remedies will not
be imposed, then Netlist's prospects and financial condition may be
materially adversely affected. These and other risks
and uncertainties are described in Netlist's quarterly report on
Form 10-Q filed on May 16, 2017, and
subsequent filings with the U.S. Securities and Exchange Commission
it makes from time to time. Given these risks, uncertainties and
other important factors, undue reliance should not be placed on
these forward-looking statements. These forward-looking statements
represent Netlist's estimates and assumptions only as of the date
made, and except as required by law, Netlist undertakes no
obligation to revise or update any forward-looking statements for
any reason.
For more information, please contact:
Brainerd Communicators, Inc.
Mike Smargiassi/ Sharon Oh
NLST@braincomm.com
(212) 986-6667
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SOURCE Netlist, Inc.