IR News
Notice on Patent Agreements with Micron Technology, Inc.
and Settlement of Litigation with Lexar Media Inc.
On September 15, 2006, Toshiba Corporation (hereafter Toshiba) entered into agreements with Micron Technology, Inc. (hereafter Micron) concerning the purchase of certain of Micron's semiconductor technology patents and license of patents previously owned by Lexar Media, Inc. (hereafter Lexar), which Micron acquired in June. Toshiba and Micron have also agreed to settle all pending litigation between Toshiba and Lexar.
- Outline of Agreements
Toshiba will purchase certain of Micron's semiconductor patents, and will license from Micron all patents owned by or previously owned by Lexar. In compensation for these patent agreements, Toshiba will pay a total of US$288 million to Micron.
Simultaneously, the agreements settle all outstanding litigation pending between Toshiba, Toshiba America Electronic Components, Inc., a US subsidiary of Toshiba, and Lexar. As a result of the agreements, the patent lawsuits pending in the Northern District of California U.S. District Court, the trade secret related lawsuits pending in the California Court of Appeals, and complaints before the International Trade Commission (ITC) will be dismissed. - Outline of Settled Litigations
(1) Patent lawsuits
Toshiba and Lexar filed suit against each other alleging infringement of NAND flash memory- related patents.
(2) Trade Secret-related Lawsuits
Lexar was seeking damages and other remedies from Toshiba and Toshiba America Electronic Components Inc., alleging NAND flash-related trade secret misappropriation and related misconduct.
(3) Investigation Concerning Request for Injunction of US Import
Lexar applied for an injunction seeking cessation of imports of Toshiba NAND flash memory products into the United States, on the grounds of alleged patent infringement.
- Objectives of the Agreements and their Possible Impact
The agreements will allow Toshiba to reinforce its semiconductor patent portfolio and to accelerate business expansion in flash memory-based system products, such as flash memory cards.
The payments for the patent purchase and licensing will be accounted for as assets, and will be amortized over an appropriate period of time based on accounting standards. Toshiba will not revise its forecast for the first half of FY2006 and FY2006 as a whole.
NAND flash memory was originally developed by Toshiba, and Toshiba has consistently led the industry in its development. NAND flash memory is a strategic product in which Toshiba owns proprietary technologies, and Toshiba will continue its proactive promotion of the NAND flash memory business.
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