Thursday, December 10, 2015

Netlist, Diablo and ULLtraDIMM

From a press release:

"We are pleased that the Federal Circuit will now have the opportunity to take a careful look at what happened at trial and the events that led up to it, particularly with respect to the clear language of our contract with Diablo," said Netlist's Chief Executive Officer, C.K. Hong. "We remain confident that after analyzing the record the Federal Circuit will come to the correct conclusion, that Diablo violated our agreement when it used Netlist chips in the design of the ULLtraDIMM."

Netlist filed motions earlier this year asking the District Court to correct the erroneous findings by the jury with respect to Netlist's breach of contract claims. Before trial, the District Court reviewed the contract and found based on the unambiguous language of the contract that Diablo had no right to use Netlist's chips—which Diablo admitted to doing—and as a result granted Netlist's request for a preliminary injunction. The jury, however, was not informed of the Court's prior interpretation of the contract. Faced with the task of deciphering the contract without any guidance from the Court as to Diablo's rights under the agreement, the jury found no breach. The District Court then refused to correct the jury's findings and denied Netlist's motions for Judgment as a Matter of Law in September, 2015.


From an earlier post on Storage Review:

The ongoing legal battle between Diablo Technologies and Netlist, concerning ULltraDIMM technology, seems to be coming to an end with the announcement that the United States District Court for the Northern District of California ruled to completely dissolve a preliminary injunction enacted in January 2015. Diablo indicates that this ruling definitively reaffirms their right to ship its their Memory Channel Storage chipset without restriction and believes that the last part of this back-and-forth legal process will have the court awarding Diablo the bond posted by Netlist, which also occurred in January of this year.


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