SAN FRANCISCO(AP)
Spansion Inc. wants to block U.S. sales of iPods, BlackBerry
gadgets and other devices because memory chips made by Samsung
Electronics Co. and used in those products allegedly violate
Spansion patents.
Sunnyvale-based Spansion, the world's No. 3 maker of flash
memory chips by revenue, sued South Korea's Samsung on Monday.
Spansion claims more than "one hundred million mp3 players,
cell phones, digital cameras and other consumer electronic
devices" are made with Samsung flash memory chips that violate
Spansion patents.
Samsung is the world's biggest memory-chip maker. Flash
memory chips are widely used in portable electronics. They're
popular because they access data quickly, require little power and
are rugged enough to withstand drops without losing
information.
Spansion claims Samsung has sold $30 billion worth of products
over the past five years that contain patented Spansion
technologies.
"Spansion has patents that are fundamental to flash memory.
Samsung itself has cited these patents many times in its own patent
filings, underscoring industry acceptance of the fundamental nature
of Spansion's (intellectual property)," Robert Melendres,
Spansion's executive vice president and general counsel, said
in a statement.
Samsung declined to comment.
Spansion filed complaints with the International Trade
Commission and U.S. District Court in Delaware. The company is
asking for damages and for the court to ban sales in the U.S. of
products with the affected Samsung chips.
Patent-infringement lawsuits often have high stakes but
ultimately have little affect on consumers because they're
settled out of court.
For example, a dispute that threatened to shut down service for
millions of BlackBerry users was settled in 2006. Research In
Motion Ltd., the maker of the BlackBerry device, agreed to pay
$612.5 million to a firm whose patented technologies covered a way
to send e-mails between computers and wireless devices.
Spansion shares rose 16 cents, or 32 percent, to 66 cents in
after-hours trading after its lawsuits were announced.
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