To: Dealer who wrote (32293 ) 9/8/2000 7:45:57 AM From: Dealer Read Replies (1) | Respond to of 35685 SNDK--Friday September 8, 12:42 am Eastern Time Lexar Media sues SanDisk in patent dispute (UPDATE: Adds SanDisk comment, background in paragraphs 4-6) WILMINGTON, Delaware, Sept 7 (Reuters) - Lexar Media Inc (NasdaqNM:LEXR - news) sued SanDisk Corp (NasdaqNM:SNDK - news) on 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 wilful infringement. Sunnyvale, California-based SanDisk called Lexar's claims ``unfounded and lacking in merit'' and said it would vigorously defend itself against its claims. In a statement issued late on Thursday, SanDisk chief executive Eli Harari called the suit, ``a desperation move by Lexar to buttress its weak position in the pending litigation between SanDisk and Lexar before the U.S. District Court in San Francisco''. The federal court in San Francisco ruled in April that Lexar's CompactFlash and PC cards infringed on patents owned by SanDisk. Damages in that case are expected to be assessed in a trial that begins October 23. Flash memory chips, unlike traditional storage chips, always maintain a charge, providing instant use. That feature is favoured in such applications as digital cameras and mobile telephones. Lexar, of Fremont, California, sells removable and usable digital film in four industry formats: CompactFlash, Memory Stick, SmartMedia and PC Cards. SanDisk is the world's largest supplier of flash data storage products including CompactFlash Cards, MultiMedia Cards, Secure Digital cards. SanDisk shares ended up $4-3/8 at $86-1/2 on the Nasdaq on Thursday, while Lexar shares ended down 3/4 at $14-1/4. Email this story - View most popular stories emailed