Nanya Technology Corp (南亞科技), the nation’s biggest PC DRAM maker, yesterday filed a complaint with the US International Trade Commission (ITC), alleging that Elpida Memory Inc, the Japanese memorychip maker’s US unit and its US customer Kingston Technology Co infringed on four of its patents.
Aside from a request to launch an investigation, Nanya Technology also demanded that the ITC ban the three firms from importing and selling the DRAM chips and storage products that use the contested patents.
The chipmaker said it planned to file other patent infringement lawsuits soon in district courts in North Carolina or other areas of the US to seek damages from Elpida, Nanya spokesman Pai Pei-lin (白培霖) told a teleconference yesterday.
THE FIRST
Nanya Technology is the first local PC DRAM company to file a complaint accusing its larger global rival of illegally using its intellectually property rights.
Taiwanese firms have long lagged behind their rivals in developing next-generation technologies and relied on technological transfers to grow.
The Taoyuan-based firm’s move comes on the heels of Nanya’s thwarted attempts to settle patent infringement lawsuits that Elpida filed with the ITC in September and last week with a district court in North Carolina.
FORCED TO ACT
“Elpida has shown no intention to settle the cases. We are forced to take legal action to protect the company’s interests,” Pai said.
“The damage and royalties Elpida requested are totally unacceptable. The price it has asked for is far from the market price,” he said.
The price of the benchmark PC DRAM increased 0.3 percent yesterday to an average US$0.67 per unit, according to Taipei-based market researcher TrendForce Corp’s real-time trading information (集邦科技).
“We have strong confidence that we’ll win our case,” Pai said.
The company has won several ITC cases, including one against Kyocera Corp, he said.
He said the first ruling on its latest complaint would come in the first quarter of next year.
“[Signing] cross-licensing [agreements] would not be a bad result,” he said.
Revenues from the North American market accounted for 20 percent to 40 percent of Nanya Technology’s revenues, Pai said, adding that: “No immediate impact on the company’s operation is seen at the moment.”
PATENTS
Nanya Technology holds more than 1,000 patents registered in the US and Taiwan, he said, and it adds about 100 new patents to its portfolio annually.
Nanya Technology shares plummeted 6.43 percent to NT$2.33 yesterday, while Elpida shares rose 0.94 percent to ￥322 on the Tokyo stock market.
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