Flash memory maker Spansion is
seeking over $100 million in damages in a trademark infringement lawsuit
against Macronix International and Macronix America.
The Flash memory spinoff from AMD and Fujitsu said Macronix deliberately made false statements about being fully
compatible with Spansion’s MirrorBit Flash memory products to piggyback on
its brand.
The company is asking a California court to make Macronix cease
its false statements; forfeit its ill-gotten gains; and pay over $100
million to Spansion for the improper use of the MirrorBit brand to market
Macronix Flash memory products.
Spansion alleges that Macronix has made millions by tricking customers into
believing it is an authorized second source for Spansion MirrorBit and that
the Taiwan-based company is purposely and falsely marketing its Flash memory
devices as compatible with MirrorBit products.
Macronix did not respond to requests for comment. But on its Web site,
Macronix refers to its NBit
Flash cards as “MirrorBit compatible.”
“Spansion has invested hundreds of millions of dollars over eight years to
develop MirrorBit products, and has established the MirrorBit brand as a
high-quality, highly reliable Flash memory technology,” said Robert
Melendres, executive vice president and general counsel for Spansion.
“By making false statements about Spansion’s MirrorBit brand, and illegally
using Spansion’s valuable trademark to market its products, Macronix has
diluted our brand and caused confusion in the market place.”
Flash memory is coveted by many makers of handheld gadgets, such as MP3
players and digital cameras, because the data is retained even when the
power is cut off. Analysts expect the Flash memory segment to continue to be
a multi-billion-dollar market.
Spansion’s MirrorBit portfolio includes traditional NOR
technology cards and chip packages, as well as ORNAND, a hybrid Flash device
that boasts a NAND
NOR Flash memory.
Similarly, Macronix makes NOR Flash chips and cards for computing,
communications and consumer markets.
Spansion’s move versus Macronix is the second major Flash-related lawsuit.
Lexar is suing
Toshiba for breach of trade secrets and patent infringement.
Micron agreed
to acquire Lexar today for $688 million.