John, this patent applies to the general class of non-volatile memory chips known as EEPROM (Electronically erasable, programmable memory), and specifically to a special type of EEPROM known as flash memory. Flash memory is different from the older EEPROM in that files can be written to it quickly (in a flash), and with very low power requirements.
As I read it, the patent deals with a method of erasing files from a flash chip, which is done when you delete a file. You want to erase the file (which might be written in segments in one or more sectors) as quickly as possible.
What we don't know from the press release is whether Micron Technology is achieving the same result as the patent does, but without using the same method of achieving it. Given the relative difference in the size of MU and SNDK, I doubt that SNDK would mess around with a lawsuit unless it had a very strong argument on the infringing of this patent. Patent suits cost a lot -- typically running in the tens of millions of dollars just to get into court. You don't spend that kind of money unless you have a pretty good idea you'll succeed.
It should be noted that SanDisk has a very good record on patent infringement actions going back to around 1992, when it claimed Samsung was illegally using a patent and succeeded in getting the Commerce Department to ban the import of Samsung products that infringed the patent. This was followed by a win against Lexar, and another action still pending against a smaller fab-less producer, Viking.
It should also be noted that there is a lot of flash memory on the market that works without need of any SanDisk patents. The point is not that a company can produce flash memory without using SanDisk patents, but maybe SanDisk has certain features that make competing flash memory less useful, efficient, etc. If the current patent suit is successful, it will ensure that SanDisk is able to continue being the low cost producer, at least of NAND type removable flash.
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