IRVINE, Calif., Dec. 9, 2015 /PRNewswire/ -- Netlist, Inc.
(NASDAQ: NLST), announced today it has filed its opening brief in
the U.S. Court of Appeals for the Federal Circuit, appealing the
judgment of the United States District Court for the Northern
District of California in
Netlist's trade secret dispute with Diablo Technologies following a
two week jury trial in March, 2015.
In its appeal, Netlist has asked the Federal Circuit to take a
fresh look at the language of the contract and to find that
Diablo's admitted use of Netlist's
chips represents a clear breach of the agreement between the
companies. Netlist has therefore asked the Federal Circuit to
reverse the judgment of the District Court and remand the case for
a trial on damages and injunction proceedings.
"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.
Netlist's separate patent lawsuit against SanDisk and
Diablo on the ULLtraDIMM product
remains pending. The patent case is currently stayed awaiting
Inter Partes Review of Netlist's seven asserted patents in the U.S.
Patent and Trademark Office. Three of the patents asserted by
Netlist have already survived review.
About Netlist, Inc.
Netlist creates solutions that accelerate turning data into
information. We design and manufacture controller and
software-based memory solutions for our OEM and Hyperscale
customers in the server and storage space. Flagship products
NVvault® and EXPRESSvault™ accelerate system performance and
provide mission critical fault tolerance. HyperVault®, Netlist's
next-generation architecture, expands the performance and capacity
of memory channel storage. The company holds a portfolio of
patents, many seminal, in the area of hybrid memory, rank
multiplication and load-reduction, among others. To learn more,
visit www.netlist.com
Safe Harbor Statement:
This news release contains forward-looking statements regarding
future events and the future performance of Netlist. These
forward-looking statements involve risks and uncertainties that
could cause actual results to differ materially from those expected
or projected. These risks and uncertainties include, but are not
limited to, the launch and commercial success of our products,
programs and technologies; the success of product partnerships;
continuing development, qualification and volume production of
HyperVault™, EXPRESSvault™, NVvault®, HyperCloud® and VLP Planar-X
RDIMM; the timing and magnitude of the decrease in sales to our key
customer; our ability to leverage our NVvault® and EXPRESSvault™
technology in a more diverse customer base; the rapidly-changing
nature of technology; risks associated with intellectual property,
including risks associated with the inherent uncertainty of the
litigation process, patent infringement litigation against us as
well as the costs and unpredictability of litigation over
infringement of our intellectual property and the possibility of
our patents being reexamined by the United States Patent and
Trademark office; volatility in the pricing of DRAM ICs and NAND;
changes in and uncertainty of customer acceptance of, and demand
for, our existing products and products under development,
including uncertainty of and/or delays in product orders and
product qualifications; delays in the Company's and its customers'
product releases and development; introductions of new products by
competitors; changes in end-user demand for technology solutions;
the Company's ability to attract and retain skilled personnel; the
Company's reliance on suppliers of critical components and vendors
in the supply chain; fluctuations in the market price of critical
components; evolving industry standards; and the political and
regulatory environment in the People's
Republic of China. Other risks and uncertainties are
described in the Company's annual report on Form 10-K filed on
March 27, 2015, and subsequent
filings with the U.S. Securities and Exchange Commission made by
the Company from time to time. Except as required by law, Netlist
undertakes no obligation to publicly update or revise any
forward-looking statements, whether as a result of new information,
future events or otherwise.
For more information,
please contact:
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Investors:
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Press:
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Brainerd
Communicators, Inc.
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Brainerd
Communicators, Inc.
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Mike Smargiassi/Jenny
Perales
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Sharon Oh
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NLST@braincomm.com
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NLST@braincomm.com
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(212)
986-6667
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(212)
986-6667
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SOURCE Netlist, Inc.