ITC Commences Investigation of Toshiba Based on Lexar Complaint
May 11 2006 - 2:16PM
Business Wire
Lexar Media, Inc. (Nasdaq: LEXR), a world leader in advanced
digital media technologies, today announced that the U.S.
International Trade Commission (ITC) has voted to commence an
investigation into whether Toshiba Corporation, Toshiba America,
Inc., and Toshiba America Electronic Components, Inc., are
infringing three Lexar patents. The products being investigated
include Toshiba's flash chips and flash cards, including among
others: Toshiba's 16-gigabit multi-level cell NAND flash chips;
Toshiba's 8-gigabit single level cell and multi-level cell NAND
flash chips; Toshiba's 4-gigabit multi-level cell NAND flash chips
and Toshiba's 1-gigabit single level cell NAND flash chips. This is
the first step towards possible U.S. government action to exclude
certain of Toshiba's NAND flash chips and cards from the U.S.
market. Lexar, in a complaint filed with the ITC on April 11, 2006,
is seeking all possible relief, including a permanent exclusion
order to bar the importation into the United States of Toshiba's
infringing NAND flash chips and cards, as well as products that
incorporate Toshiba's infringing chips. Additionally, Lexar's
complaint requests a cease-and-desist order to bar further sales
and distribution of infringing products that have already been
imported into the United States by Toshiba. The case has been
referred to ITC Administrative Law Judge Robert L. Barton, Jr., who
will schedule and hold an evidentiary hearing and then render an
initial determination. Judge Barton is expected to issue this
initial determination sometime early to mid-next year. The ITC is
then likely to hand down its final determination during the third
quarter of 2007. Certain of the patented technology at issue in
this complaint is related to the technology that a jury, after a
six-week trial in March 2005, found Toshiba had misappropriated
from Lexar. That case is now on appeal. About Lexar Media, Inc.
Lexar is a leading marketer and manufacturer of NAND flash memory
products including memory cards, USB flash drives, card readers and
ATA controller technology for the digital photography, consumer
electronics, industrial and communications markets. The company
holds over 98 issued or allowed controller and system patents, and
licenses its technology to companies including Olympus Corporation,
Samsung Electronics Co., Ltd., SanDisk Corporation and Sony
Corporation. Lexar sells its memory cards worldwide and through an
exclusive agreement, also sells memory cards under the Kodak brand.
Headquartered in Fremont, California, Lexar has operations in
countries around the world. More information is available at
www.lexar.com Cautionary Note Regarding Forward-Looking Statements
This release contains forward-looking statements, which are subject
to the safe harbor provisions of the Private Litigation Reform Act
of 1995. These statements include statements related to the
anticipated timing and outcome of the ITC action. These
forward-looking statements involve risks and uncertainties that
could cause Lexar's actual results to differ materially from those
anticipated by these forward-looking statements. These risks
include that the outcome of any government proceeding or litigation
can be subject to a number of uncertainties, including whether such
matters are resolved with a favorable outcome in a timely fashion;
and that Lexar may become involved in additional government
proceedings or litigation that could divert management's time and
attention, be time-consuming and expensive to defend and limit
Lexar's access to important technology, which could have a negative
impact on Lexar's business, operating results, financial position
and liquidity and the market price of Lexar's stock could decline.
Readers should also refer to the risk factors described in Lexar's
filings with the SEC, including Lexar's most recently filed Form
10-K and Form 10-Q. Lexar assumes no obligation to update the
information in this release. Lexar and the Lexar logo are
trademarks of Lexar Media, Inc. All other brand or product names
are trademarks or registered trademarks of their respective
holders.
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