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Netlist Comments On Patent Infringement Actions Against SK hynix
By: PR Newswire
Dec. 7, 2017 08:30 AM
IRVINE, Calif., Dec. 7, 2017 /PRNewswire/ -- Netlist, Inc. (NASDAQ: NLST), today confirmed more details on the Initial Determination ("ID") received from the United States International Trade Commission (ITC) in its investigation of SK hynix RDIMM and LRDIMM enterprise memory products. The public version of the ID was issued by Administrative Law Judge (ALJ) Bullock on December 5, 2017.
According to the ID, ALJ Bullock determined that Netlist's five asserted patents are valid, and that Netlist satisfied the economic domestic industry requirement. Further, with respect to the public interest issue, the ALJ determined that Netlist complied with its reasonable and non-discriminatory (RAND) licensing obligations. However, the ALJ found that SK hynix does not infringe the asserted patents, and for this reason concluded there was no violation of section 337 of the Tariff Act.
"While we are pleased with the ALJ's positive determinations as to validity, domestic industry, and public interest, we are disappointed in the initial findings on infringement. Netlist will challenge the ALJ's recommendations on infringement and hopes to prevail on this issue in the final determination," said Netlist's Chief Executive Officer, C.K. Hong. "We will also build on the positive findings of this ID in the second ITC action we filed against SK hynix with new, stronger patents."
As part of the regular procedure at the ITC, the parties are in the process of submitting an additional briefing to the Commission. The Commission's role is to review the ID, and reach a Final Determination (FD) which may affirm, set aside, or modify the ID. The FD is currently scheduled to be issued by March 14, 2018.
The ITC instituted the second investigation into SK hynix's RDIMM and LRDIMM products on November 28, 2017, based on Netlist's U.S. Patent Nos. 9,606,907, and 9,535,623. Netlist expects this investigation will proceed quickly, with a trial likely in mid-2018. In the meantime, Netlist expects a preliminary infringement ruling in January, 2018, from the court in Munich, Germany, where Netlist has asserted patent claims related to those in the ITC proceedings. Similar claims have also been asserted in China, with a trial expected in the second half of 2018.
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