SanDisk and SK Hynix Announce Expanded IP and Commercial Relationship; Settle Outstanding Trade Secret Litigation
August 04 2015 - 8:00AM
Business Wire
SanDisk Corporation (NASDAQ: SNDK), a global leader in flash
storage solutions, today announced it has reached agreement with SK
Hynix, Inc. to modify and extend their intellectual property
licensing relationship and enter into a multi-year commercial
relationship under which SK Hynix will supply its leading-edge DRAM
products to SanDisk. These agreements include a settlement of the
trade secret misappropriation suit filed by SanDisk in 2014.
Under these agreements, which will expire on March 31, 2023,
SanDisk will release SK Hynix of its liability pertaining to the
trade secret litigation and license certain intellectual property
rights to SK Hynix in exchange for license and royalty payments to
be made over the duration of the agreement. In addition, SK Hynix
has agreed to supply SanDisk with certain volumes of its DRAM
products for MCP and SSD applications. The specific terms and
conditions of the agreements, including with respect to economic
consideration, are confidential.
“We are pleased to have reached this important settlement and to
expand our commercial relationship with SK Hynix. We believe this
resolution acknowledges the value of our intellectual property
while providing SanDisk access to DRAM solutions desired by our
customers for their mobile and SSD applications for many years to
come,” said Sanjay Mehrotra, president and chief executive officer
of SanDisk.
“We believe this resolution is positive for both SK Hynix and
SanDisk and our customers. We look forward to this renewal and
extension of our business collaboration with SanDisk,” said Dr.
Sung-Wook Park, president and chief executive officer of SK
Hynix.
About SanDisk
SanDisk Corporation (NASDAQ: SNDK), a Fortune 500 and S&P
500 company, is a global leader in flash storage solutions. For
more than 25 years, SanDisk has expanded the possibilities of
storage, providing trusted and innovative products that have
transformed the electronics industry. Today, SanDisk’s quality,
state-of-the-art solutions are at the heart of many of the world's
largest data centers, and embedded in advanced smart phones,
tablets and PCs. SanDisk’s consumer products are available at
hundreds of thousands of retail stores worldwide. For more
information, visit www.sandisk.com.
© 2015 SanDisk Corporation. All rights reserved. SanDisk and the
SanDisk logo are trademarks of SanDisk Corporation, registered in
the United States and other countries. Other brand names mentioned
herein are for identification purposes only and may be the
trademarks of their respective holder(s).
This news release contains certain forward-looking statements,
including statements about expectations regarding the benefits of
the extended license agreement, including license and royalty
payments under the license agreement, the expected benefits of the
DRAM supply agreement and SK Hynix’s continued supply of DRAM
required by Sandisk for future periods that are based on SanDisk’s
current expectations and involve numerous risks and uncertainties
that may cause these forward-looking statements to be inaccurate.
Risks that may cause these forward-looking statements to be
inaccurate include among others: SK Hynix’s failure to perform its
obligations under the license or supply agreement, the license and
royalty payments not being made in a timely fashion or in the
amounts we expect, whether the pricing terms under the supply
agreement will result in cost-competitive supply of DRAM as
compared to other sources, the quality and quantity of the DRAM
supplied by SK Hynix may not meet our requirements, changing market
and industry conditions, and the other risks detailed from
time-to-time under the caption “Risk Factors” and elsewhere in our
Securities and Exchange Commission filings and reports, including,
but not limited to, our Quarterly Report on Form 10-Q for the
quarter ended June 28, 2015. All statements made in this news
release are made only as of the date of this release. We undertake
no obligation to update the information in this release in the
event facts or circumstances change after the date of this
release.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20150804005672/en/
SanDisk CorporationMedia Contact:Michael Diamond,
408-801-1108michael.diamond@sandisk.comInvestor
Relations:Jay Iyer, 408-801-2067jay.iyer@sandisk.com
Sandisk (NASDAQ:SNDK)
Historical Stock Chart
From Aug 2024 to Sep 2024
Sandisk (NASDAQ:SNDK)
Historical Stock Chart
From Sep 2023 to Sep 2024