Overland Action Vs. BDT Once More Delayed

Overland Storage Inc. announced that the Administrative Law Judge (ALJ) in the U.S. International Trade Commission (ITC) action brought by Overland Storage against BDT has issued an order delaying the date of his initial determination from May 24, 2012 to June 22, 2012.

"The ALJ's decision to extend the initial determination date is unfortunate, but we remain confident that the ALJ will reach a decision in our favor in June," said Eric Kelly, president and CEO of Overland Storage. "This delay does not impact our business strategy, and we will continue to protect our valuable assets as we deliver next generation enterprise technology and products to the growing mid-tier segment of the storage industry."

Overland filed a complaint with the ITC on October 19, 2010 against BDT, IBM and Dell, claiming infringement of two of its patents, United States Patent Nos. 6,353,581 and 6,328,766. Overland also filed a patent infringement lawsuit against the same companies in federal district court in San Diego, California. That case is stayed pending the outcome of the ITC action.

A seven-day trial at the ITC was completed on September 7, 2011. On November 16, 2011, Overland reported that the ITC and district court actions against IBM and Dell had been resolved by settlement.

The ALJ was originally scheduled to issue his initial determination on November 23, 2011. That date has been delayed a number of times, most recently to June 22, 2012. Delays like this one have become more common recently with the ITC due to an increasing caseload. The ALJ's order dated May 21, 2012 cited as reasons for the delay "the complexity of the investigation, the large record created at the hearing, and the current workload of the undersigned," and his "administrative duties as Chief Administrative Law Judge."

The ALJ's June 22, 2012 initial determination will be subject to further review by the ITC. After the final resolution of the ITC litigation, Overland can resume enforcing its patents against BDT in federal district court, where Overland is seeking monetary damages from BDT as a result of BDT's infringement.

Overland is represented in the litigation by DLA Piper LLP (US).


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