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Technology Stocks : WDC/Sandisk Corporation
WDC 157.75+0.4%Nov 14 9:30 AM EST

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To: Bhag Karamchandani who started this subject9/7/2000 6:50:41 PM
From: Cooters  Read Replies (2) of 60323
 
Lexar Media sues Sandisk in flash memory patent dispute

--From AOL News.-- Cooters

WILMINGTON, Del,, Sept 7 (Reuters) - Lexar Media Inc. <LEXR.O> sued SanDisk Corp. <SNDK.O> Thursday for alleged infringement of a Lexar patent for flash memory storage chips.

In papers filed in the U.S. District Court in Delaware, Lexar said SanDisk flash memory products, including its "SmartMedia" cards, drivers and readers, allegedly infringed Lexar's patent for a "Flash memory mass storage architecture incorporation wear leveling technique."

The 1993 patent was originally assigned to Cirrus Logic Inc. and acquired by Lexar in 1996. Lexar seeks a jury trial on its demands that SanDisk be blocked from further alleged infringement and that Lexar be awarded unspecified damages, tripled for alleged willful infringement.

Flash memory chips, unlike traditional storage chips, always maintain a charge, providing instant use. That feature is favored in such applications as digital cameras and cell telephones.

Lexar, of Fremont, California, sells removable and usable digital film in four industry formats: CompactFlash, Memory Stick, SmartMedia and PC Cards.

Sandisk, of Sunnyvale, California, is the world's largest supplier of flash data storage products including CompactFlash Cards, MultiMedia Cards, Secure Digital cards.

SanDisk spokesman Elias Castillo said the company could not comment on the lawsuit until it could review it. He notes that the SmartMedia card referred to by Lexar is made by Toshiba and branded by SanDisk.

Castillo told Reuters that "Sales for the total worldwide flash card market in 1999 were $718 million and that is expected to more than double in 2000 to $1.7 billion. We have nearly 29 percent of the market share."

SanDisk has a patent infringement lawsuit pending against Lexar in another jurisdiction.

18:32 09-07-00
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