by Lyle Smith

Diablo Technologies Gains Ground Against Netlist in ULLtraDIMM Lawsuit

In an interesting turn of events, Diablo Technologies has announced what is described as a decisive victory in the lawsuit brought by Netlist concerning the ULLtraDIMM technology. Today, a federal jury in the United States District Court for the Northern District of California ruled in favor of Diablo. A jury unanimously decided that there was no breach of contract and that there was no misuse of trade secrets. In addition, the jury also confirmed that Diablo is now the sole ownership and inventorship of the “917 patent.”

The on-going litigation dates back to the December of 2013, where Netlist accused Diablo of stealing their flagship proprietary technology, HyperCloud, for Diablo’s ULLtraDIMM product. A year later, Diablo filed a lawsuit against Netlist for unfair business practices that violate Diablo’s Intellectual Property rights, which ultimately ended up in a preliminary injunction against the company for controller chips used by SanDisk in its high-speed ULLtraDIMM SSD product line. This banned Diablo from manufacturing, using, distributing or selling the high-speed memory chips used other major computer manufacturers including SanDisk. Before the news broke today, the last we heard of the quarrel was Diablo’s appeal of the court ruling, as the judge denied Diablo’s countersuit against Netlist earlier this year.

Diablo believes that the most recent decision made by the court validates Diablo’s position in the matter. Netlist will likely appeal, however, and we certainly haven’t heard the last of this case.

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