Flash memory patents: SNDK and SSTI
Below is info. taken from SEC filings. It indicates the number (but not the quality) of patents, and I have some
info. on patent litigation and royalty payments (which presumably flow from patents).
Again, to cut to the chase, SNDK has more patents and seems to be suing others to protect them. SSTI has
less and has had to defend them against the suits of others.
Note: Someone on thread I read recently went to a patent web site and did a search to determine how many
times a company's patents were referenced in the filings of other patents. The assumption is that a patent for a
key technology will be referenced often. I have not done something similar for these two companies, so if
someone else wants to give that a try, I'm sure it would be helpful.
SNDK from Prospectus Filed Pursuant to Rule 424
11/4/99
We are recognized as a leader in the development of flash card data storage
technology. We own or have exclusive access to more than 120 U.S. and foreign
patents, some of which are fundamental to the implementation of flash card data
storage systems, including the implementation of double-density, or D2, flash,
independent of the flash technology used.
from the 10k
in 1995, the Company informed Samsung that the Company believed Samsung
infringed certain of its patents. In response, Samsung filed a complaint
accusing the Company of infringing two of its patents. The Company then filed a
complaint against Samsung with the United States International Trade Commission
(the "ITC") alleging that Samsung and its U.S. sales arm were importing and
selling products that infringed two of the Company's patents. After a hearing on
this matter, the ITC issued an order that both SanDisk patents were valid and
that Samsung had infringed such patents, and prohibited the import, sale,
marketing, distribution or advertising of Samsung's infringing flash memory
circuits in the United States. In August 1997, the Company and Samsung entered
into a settlement agreement resolving all aspects of this dispute, pursuant to
which the parties agreed to cross-license certain patents and Samsung agreed to
make license and royalty payments to the Company.
In March 1998, the Company filed a complaint in federal court against
Lexar Media, Inc. ("Lexar") for infringement of a fundamental flashdisk patent.
Lexar has disputed the Company's claim of patent infringement, claimed SanDisk's
patent is invalid or unenforceable and asserted various counterclaims
SSTI from the 10k
The Company's products are designed around patented memory cell
technology and are fabricated using patented process technology. The Company
owns 20 U.S. patents concerning certain aspects of its products and processes,
although not all of these patents are in the field of memory cell or process
technology.
On January 3, 1996, Atmel Corporation ("Atmel") sued the Company in the
U.S. District Court for the Northern District of California. Atmel's complaint
alleges that the Company, by making, using and selling devices, is willfully
infringing on five U.S. patents owned by or exclusively licensed to Atmel. Atmel
later amended its complaint to allege infringement of a sixth patent.
On September 14, 1998, Intel sued the Company in the U.S. District
Court for the Northern District of California, San Jose Division. Intel's
complaint alleged that the Company, by making, using and selling devices, was
willfully infringing four U.S. patents owned by Intel.
from Prospectus Filed 8/20/99
Our medium density products, which presently account for
substantially all of our revenues, compete principally against products offered
by Intel, Advanced Micro Devices, Inc., Atmel, STMicroelectronics, Sanyo,
Winbond Electronics Co. and Macronix, Inc. If we are successful in developing
our high density products, these products will compete principally with products
offered by Intel, Advanced Micro Devices, Fujitsu Limited, Sharp Electronics
Corporation, Samsung Semiconductor, Inc., SanDisk Corporation and Toshiba
Corporation, as well as any new entrants to the market.
Over the past three years we were sued by both Atmel Corporation and Intel
Corporation regarding patent infringement issues. Significant management time
and financial resources have been devoted to defending these lawsuits. We
settled with Intel in May 1999 and the Atmel litigation is ongoing.
Royalties:
SNDK
from 10-Q Quarterly Report 11/3/99
License and royalty 9,910
SSTI
from 10-Q/A Amended Quarterly Report 8/24/99
License revenues 2,558
numbers are in millions.
more later
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