Diablo Technologies comments on latest motion filed by Netlist

OTTAWA, Canada – October 9, 2014 – Diablo Technologies today commented on the announcement that Netlist (NLST) has filed a motion for preliminary injunction against the company and its technology partner SanDisk®, in an attempt to impede the manufacture and sale of the ULLtraDIMM™ product.

Notably absent from Netlist’s press release is the fact that their recent motion has abandoned much of their previous positioning. Netlist has been forced to dismiss over three quarters of their asserted trade secrets and remove any claim of lost sales for the HyperCloud® DIMM. Netlist’s recent amendments now limit their claims of lost sales to the NVvault™, which does not even leverage the asserted IP, and the HyperVault, a product still in the early stages of development. These changes can be attributed to Netlist’s failure to substantiate claims in the so-called anonymous ‘whistleblower’ letter, on which they have based their case from the start. The request for a Preliminary Injunction will take months to resolve and Diablo will continue to deal with these baseless accusations in court.

“After a year of court proceedings and months of discovery, Netlist still cannot decipher how Memory Channel Storage works, much less substantiate that it infringes on any of their IP,” said Riccardo Badalone, CEO of Diablo Technologies. “Netlist indicated months ago that it would seek a Preliminary Injunction, and their long delay in doing so, as well as their continuous re-shuffling of infringement claims and trade secret assertions clearly indicate that they are losing confidence in their case. Netlist will continue in their attempt to disrupt our business and tarnish our brand in an effort to obtain a settlement as their only hope to generate a return. We view their latest move as a public relations stunt, which we will address in our existing claim against them.”

Diablo filed its defense and a counter claim against Netlist’s unfair business practices on September 25, 2014.

Diablo does not anticipate this latest development to disrupt the growing adoption of its products and technologies. The Memory Channel Storage™ (MCS™) platform is a new and innovative architecture that neither infringes upon, nor misappropriates any Netlist IP rights and makes full use of Diablo’s own IP, designs and implementations. MCS-based products and the Netlist HyperCloud, NVvault and HyperVault modules are sold in very different markets and are not interchangeable.

“Netlist has several significant competitors in the narrow NVDIMM (battery backed DRAM) market space, all of which are building similar and potentially interchangeable products,” continued Mr. Badalone. “MCS-based products are Flash-only and compete in the much larger and significantly expanding market of enterprise SSDs, where Netlist has no IP or product offerings. Preliminary Injunctions, in general, are very difficult to obtain, but we will be diligent in demonstrating that our products are non-infringing and non-competing. We will continue to press our case with full confidence in the court system.”