Netlist Files Appeal In Trade Secret Case Vs. Diablo

Netlist, Inc. has filed its opening brief in the U.S. Court of Appeals for the Federal Circuit, appealing the judgment of the United States District Court for the Northern District of California in Netlist’s trade secret dispute with Diablo Technologies, Inc. following a two week jury trial in March, 2015.

In its appeal, Netlist has asked the Federal Circuit to take a fresh look at the language of the contract and to find that Diablo’s admitted use of Netlist’s chips represents a clear breach of the agreement between the companies. Netlist has therefore asked the Federal Circuit to reverse the judgment of the District Court and remand the case for a trial on damages and injunction proceedings.

“We are pleased that the Federal Circuit will now have the opportunity to take a careful look at what happened at trial and the events that led up to it, particularly with respect to the clear language of our contract with Diablo,” said Netlist’s CEO, C.K. Hong. “We remain confident that after analyzing the record the Federal Circuit will come to the correct conclusion, that Diablo violated our agreement when it used Netlist chips in the design of the ULLtraDIMM.”

Netlist filed motions earlier this year asking the District Court to correct the erroneous findings by the jury with respect to Netlist’s breach of contract claims. Before trial, the District Court reviewed the contract and found based on the unambiguous language of the contract that Diablo had no right to use Netlist’s chips-which Diablo admitted to doing-and as a result granted Netlist’s request for a preliminary injunction. The jury, however, was not informed of the Court’s prior interpretation of the contract. Faced with the task of deciphering the contract without any guidance from the Court as to Diablo’s rights under the agreement, the jury found no breach. The District Court then refused to correct the jury’s findings and denied Netlist’s motions for Judgment as a Matter of Law in September, 2015.

Netlist’s separate patent lawsuit against SanDisk and Diablo on the ULLtraDIMM product remains pending. The patent case is currently stayed awaiting Inter Partes Review of Netlist’s seven asserted patents in the U.S. Patent and Trademark Office. Three of the patents asserted by Netlist have already survived review.

Read also:
Diablo Said About Case Vs. Netlist: …
“Closed and won”
… And Netlist Comments:
“We intend to vigorously pursue its options on appeal.”
Federal Court Completely Dissolves Injunction, Said Diablo
Court will now decide on awarding bond to company.
Diablo Will Resume Shipments of MCS-Based Chipsets
Following preliminary injunction
Legal Victory for Diablo Vs. Netlist …
No breach of contract and no misuse of trade secrets…
… Netlist Comments On Jury Verdict
And intends to pursue patent suit vs. SanDisk and Diablo related to the ULLtraDIMM.
Netlist Prevails Again in Patent Battles Vs. SanDisk and Smart Modular
In ULLtraDIMM case
Netlist Said Appeals Court Denies Emergency Motion From Diablo
Court refuses to halt injunction vs. controller chips used in SanDisk ULLtraDIMM SSD.
Netlist Said to Defeat SanDisk in ULLtraDIMM Patent Case
As well as Diablo Technologies
Diablo Technologies Comments on Motion Filed by Netlist
“Now limiting claims of lost sales to NVvault”
Diablo Technologies Sues Netlist
For unfair business practices that violate IP rights
Netlist Patent Case Against SanDisk and Diablo Technologies
Concerning ULLtraDIMM