MILPITAS, California, April 10, 2009 - SanDisk® Corporation (NASDAQ: SNDK) was informed today that an Administrative Law Judge for the United States International Trade Commission (ITC) issued an Initial Determination which found that certain accused flash memory products did not infringe the remaining two SanDisk United States Patents.
SanDisk initially asserted five patents in the ITC on October 24, 2007 against 25 companies that manufacture, sell and import USB flash drives, CompactFlash cards, MultiMedia cards, MP3/media players and/or other removable flash storage products. Since then, SanDisk obtained judgments against the following companies: Zotek Electronic Co., Ltd. dba Zodata Technology Limited; Infotech Logistic, LLC dba Supertron Memory; Add-On Technology Co.; Behavior Tech Computer Corp.; Emprex Technologies Corp.; and Behavior Tech Computer USA Corp. dba BTC USA.
In addition, the following companies entered into settlement and license agreements with SanDisk: Trek 2000 International, Ltd., PNY Technologies, Inc., Verbatim Corp., Verbatim Americas, Add-On Computer Peripherals, Inc. and Add-On Computer Peripherals, LLC (collectively, Add-On USA), Edge Tech Corporation, Infotech Logistic, Interactive Media Corp. (Kanguru), Kaser Corporation, TSR Silicon Resources Inc., and Welldone Company.
Further, the following companies entered into settlement agreements that included consent orders where the companies agreed to limit their imports of specified products to the United States to SanDisk licensed products: A-DATA Technology Co., Ltd. and A-DATA Technology (USA) Co., Ltd. (collectively, A-DATA entities), Melco Holdings Inc., Buffalo Inc., and Buffalo Technology (USA), Inc. (collectively, Buffalo entities) and Corsair Memory, Inc.
"SanDisk is disappointed by the Initial Determination of the Administrative Law Judge," said E. Earle Thompson, vice president and chief intellectual property counsel, SanDisk. "We will continue to vigorously pursue actions against companies that use SanDisk's patented technology without a license. SanDisk expects that the Initial Determination will not adversely impact existing licensing agreements or the royalties expected from those agreements."
SanDisk is the original inventor of flash storage cards and is one of the world's largest suppliers of flash data storage card products, using its patented, high-density flash memory and controller technology. SanDisk is headquartered in Milpitas, California, and has operations worldwide, with more than half its sales outside the United States.
SanDisk and the SanDisk logo are trademarks of SanDisk Corporation, registered in the United States and other countries. Other trade names mentioned herein are for identification purposes only and may be the trademarks of their respective holder(s).
This press release contains forward-looking statements, including expectations for the litigation, the cost of the litigation and the outcome of the controversy and future license and royalty revenue to SanDisk that are based on SanDisk's current expectations and involve numerous risks and uncertainties that may cause these forward-looking statements to be inaccurate. Risks that may cause these forward-looking statements to be inaccurate include, among others: we may be unable to protect our intellectual property rights, which would harm our business, financial condition and results of operations; we may be unable to license intellectual property to or from third parties as needed, or renew existing licenses, which could expose us to liability for damages, reduce our royalty revenues, increase our costs or limit or prohibit us from selling products; we currently are and may in the future be involved in litigation, including litigation regarding our intellectual property rights or those of third parties, which may be costly, may divert the efforts of our key personnel and could result in adverse court rulings, which could materially harm our business; and the other risks detailed from time-to-time in SanDisk's Securities and Exchange Commission filings and reports, including, but not limited to, its Form 10-K and quarterly reports on Form 10-Q. SanDisk does not intend to update the information in this press release.
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