… And Netlist Comments:

Netlist, Inc. announced that the United States District Court for the Northern District of California issued decisions on the post-trial motions in Netlist’s trade secret case against Diablo Technologies, Inc.

The Court denied motions from both parties for Judgment as a Matter of Law (JMOL), Netlist’s motion for a new trial, and Diablo’s motion for attorney’s fees, but granted Diablo’s motion to recover on the preliminary injunction bond and its bill of costs.

Netlist strongly disagrees with the Court’s refusal to grant JMOL and a new trial, particularly given the Court’s prior rulings that Diablo had no right to use Netlist’s chips coupled with Diablo’s admissions that it used Netlist’s chips. The parties now have 30 days to file notices of appeal with the U.S. Court of Appeals for the Federal Circuit.

The company intends to vigorously pursue its options on appeal.

The Court’s rulings in the trade secret case have no impact on Netlist’s patent lawsuit against SanDisk and Diablo on the ULLtraDIMM product. The patent case is currently stayed pending Inter Partes Review of Netlist’s seven asserted patents in the U.S. Patent and Trademark Office. The Patent Office already has agreed with Netlist that three of those patents are valid, and Netlist will continue to fight for the validity of the remaining four patents.

C.K. Hong, Netlist’s CEO, stated: “We strongly disagree with the Court’s decisions and remain confident in our belief that Diablo breached our contract and stole Netlist’s trade secrets. We look forward to the opportunity to present these issues on appeal and are confident that the Federal Circuit will carefully consider the record and reverse this unjust outcome. We are also pleased with the progress we’ve made in the patent case and the PTO’s validation of our patents covering SanDisk’s ULLtraDIMM product.“