Spansion Inc. (CODE)

[elephant]

Oldy but a goody. This suggests Spansion knew full well that they were compromising when they went ahead with the Samsung deal. Maybe it was all part of the plan?

http://www.solid-state.com/display_article/345891/5/none/none/TCHNE/Analysis:-What%27s-at-stake-with-Spansion/Samsung-flash-memory-litigatio

Analysis: What's at stake with Spansion/Samsung flash memory litigation
Date: November, 2008

Nov. 18, 2008 - Is the new litigation from Spansion (and unit Saifun Semiconductor) against Korean chip/electronics giant Samsung a move of desperation? Or is it a savvy IP strategy that could rock the industry and set an example? Objective Analysis' Jim Handy explains what's going on and what's likely to come about.

A quick recap: Spansion, on behalf of its recently acquired unit Saifun Semiconductor, has filed a complaint with the US International Trade Commission (ITC) against Korean electronics giant Samsung Electronics, seeking to block imports of allegedly infringing devices to the tune of one million MP3 players, cell phones, digital cameras, and other consumer electronic devices. Per ITC rules, Spansion is also naming downstream manufacturers in the Samsung product chain, essentially a who's who of electronics OEMs: Apple, Lenovo, RIM, and Sony; plus Asus, Kingston, and Samsung's other consumer electronics units, plus other third-party manufacturers. A simultaneous filing in US District Court in Delaware seeks an injunction and treble damages for flash memory patent violations.

The stakes, according to Spansion, are tremendous. In a PR, the firm calls the lawsuit "one of the largest patent infringement claims ever filed" -- the technology at issue is "fundamental to floating gate technology, which is the foundation for approximately 90% of the flash memory market," and the Delaware action cites Samsung's flash memory sales as exceeding $30B since 2003. And Boaz Eitan, EVP of Spansion and CEO of Saifun Semiconductor, went even further, stating that Samsung's alleged misuse of proprietary flash memory technology no less than "threatens the foundation of technology innovation."