by Lyle Smith

Court Denies Diablo’s Countersuit Against Netlist

The on-going suit between Netlist and Diablo has released yet more happenings as it was announced today that Judge Yvonne Gonzalez Rogers of the United States District Court for the Northern District of California has granted Netlist’s Special Motion to Strike Diablo’s claims against Netlist for breach of contract, unfair competition, and interference with Diablo’s customers.  In addition, the Court also ruled that Netlist is entitled to “reasonable attorneys’ fees and costs” pertaining to Netlist’s filing of the Special Motion to Strike.

Now that all of Diablo’s claims have been struck down, the company has no affirmative claims to use in the trade secret lawsuit. Netlist’s claims for misappropriation and breach of contract, however, remain valid with a March 9, 2014 trial date. On Monday of this week, Judge Gonzales Rogers found that Netlist’s actions (including the filing of the trade secret law suit as well as discussing the suit with customers), fell within California statutes designed to protect constitutional free speech and statements related to litigation. As such, one of these statutes includes the early dismissal of meritless claims aimed at “chilling” protected speech, which is designed to help avoid expensive and lengthy legal endeavors.

The above ruling came only a few days after Judge Gonzalez Rogers ordering a preliminary injunction against Diablo from manufacturing, using, distributing or selling high-speed memory chips (ULLtraDIMM) used by SanDisk and other major computer manufacturers.

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