Diablo Technologies Appeals District Judge Ruling In Federal Court

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Jan 14, 2015, 08:00 ET

SAN JOSE, Calif., Jan. 14, 2015 /PRNewswire/ -- Diablo Technologies, Inc. today announced that it has appealed the ruling by the United States District judge in California granting a preliminary injunction to halt Diablo's shipments of Memory Channel Storage™ (MCS™) based chipsets. Diablo's appeal explains that the ruling is based on an erroneous interpretation of the contract and a failure to recognize the technology differences among the products involved. Most importantly, however, the court did not find that Diablo MCS uses Netlist trade secrets.

To support the judgment, the order effectively rewrites the language in the contract signed by the parties in 2008: the additional words included in the order changed the terms of the contract significantly and imposed a new obligation that was not agreed between the parties. In other words, there was no violation by Diablo of the original contract.

The court was misled about important technology distinctions: The court relied on Netlist's representation that their HyperCloud and Diablo MCS "are used to perform the same function" which is not the case because the HyperCloud is DRAM (memory) and Diablo MCS is a block storage device (disk). The court also relied on Netlist's representation that the products are competitive because they both "attach to the same memory channel." Netlist equates the two devices simply because they use the same location and i/o channel; extending that logic would equate all devices that reside in PCI-e slots, which would be a similarly erroneous claim.

"It is important that the facts of the case are well understood; it should also be stressed that the court did not determine that Diablo uses Netlist trade secrets," stated Riccardo Badalone, CEO and Co-founder of Diablo Technologies. "We offer an innovative storage device that gives customers great performance advantages, but with this injunction, the court is putting our company and our customers at risk. With this appeal, we expect to reverse this decision and get back to work."

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About Diablo Technologies

Founded in 2003, Diablo is at the forefront of developing breakthrough technologies to set the standard for next-generation enterprise computing. Diablo's Memory Channel Storage platform combines innovative software and hardware architectures with Non-Volatile Memory to introduce a new and disruptive generation of Solid State Storage for data-intensive applications.

The Diablo executive leadership team has decades of experience in system architecture, chip-set design and software development at companies including IBM, Nortel Networks, Intel, Cisco, AMD, SEGA, ATI, Cadence Design Systems, Matrox Graphics, BroadTel Communications and ENQ Semiconductor.

Website: http://www.diablo-technologies.com/

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SOURCE Diablo Technologies, Inc.