SanDisk loses trade ruling over memory chip patents

SanDisk Corp., the world's largest maker of cards that store digital pictures, failed to convince U.S. officials that more than a dozen companies infringe its patents for flash-memory technology.

The U.S. International Trade Commission in Washington said today that there had been "no violation." SanDisk originally claimed almost 50 companies, including LG Electronics Inc. and Imation Corp., violated its patents and asked the commission to ban imports to the U.S. of infringing products.

A finding of violation could have resulted in a ban of imports of any products that infringe the SanDisk patent.

Of the original group named in the complaint, 21 were terminated from the investigation because of settlements, consent orders and withdrawals, according to the ITC notice. Five companies defaulted, the ITC said.

Flash-memory chips are used to store data in digital cameras, cell phones and MP3 players. SanDisk had originally claimed 50 companies and their units violated its patents and refused to pay licensing fees. The company received $191.5 million in licensing and royalty fees in the first six months of the year, or 14 percent of its total revenue, SanDisk said in July.

SanDisk's complaint targeted flash drives, memory cards, USB drives and media players made by the companies.

The companies that still remained in the case included Phison Electronics Corp., Silicon Motion Technology Corp. and Skymedi Corp., all of Hsinchu, Taiwan; Power Quotient International Co., Transcend Information Inc. and Apacer Technology Inc. of Taipei; Syscom Development Co. of the British Virgin Islands; Kingston Technology Corp. of Fountain Valley, California; and Dane-Elec Memory of Bagnolet, France.

The case is In the Matter of Certain Flash Memory Controllers, Drives, Memory Cards and Media Players and Products Containing Same, 337-619, U.S. International Trade Commission (Washington).