Message: FlashBack - E.Digital, Samsung Settle Flash Memory Patent Battle (from 2009)
E.Digital, Samsung Settle Flash Memory Patent Battle
By Ryan Davis
Law360, New York (October 21, 2009, 6:17 PM ET) -- Samsung Electronics America Inc. has agreed to settle a patent lawsuit filed by e.Digital Corp. over flash memory technology, making it the last of the seven defendants in the case to reach an agreement with e.Digital.The two companies filed a joint motion for dismissal Wednesday in the U.S. District Court for the Eastern District of Texas, citing a settlement.
In August, Magistrate Judge Charles Everingham IV ordered a stay of all proceedings between the technology companies to give them time to finalize a settlement agreement.
E.Digital sued Samsung, Sanyo North American Corp., Nikon Inc., Avid Technology Inc., Casio America Inc., LG Electronics USA Inc. and Olympus America Inc. in March 2008, claiming that cell phones, digital cameras, camcorders and other devices with digital recording capabilities made by the defendants infringed four of the company’s patents.
The patents-in-suit — titled “Hand-held record and playback device with flash memory,” “Method for recording voice messages on flash memory in a hand-held recorder,” “Operating system including improved file management for use in devices utilizing flash memory as main memory” and “Flash memory file system in a hand-held record and playback device” — were issued to e.Digital between 1996 and 1998, according to the initial complaint.
E.Digital settled with Olympus in April, with Avid and Sanyo in March, and with Nikon in February.
It had previously reached agreements with Casio in December 2008 and LG Electronics in October 2008.
E.Digital asserted the same four patents in a lawsuit against Vivitar Corp. in the Eastern District of Texas in September 2007. That suit was administratively closed on March 25 because Vivitar filed for bankruptcy.
Though e.Digital focuses on providing in-flight audio for airlines, most of the company's recent announcements tout its success at patent licensing. With each dismissal motion, e.Digital has publicized a new patent licensing agreement, all of which see e.Digital receive a one-time licensing fee.
Some of e.Digital’s settlements with the camera makers have also included cross-patenting licensing agreements.
E.Digital reported licensing revenues of $10.1 million for the fiscal year ending March 31, but had no patent license revenue and reported net losses of $570,000 in the first quarter ending June 30, according to an Aug. 13 financial statement.
Based on its early licensing success, the company expects further legal and licensing activity, additional patent enforcement actions, and additional IP-related revenues this fiscal year, the statement said.
The patents-in-suit are U.S. Patent Numbers 5,491,774; 5,742,737; 5,787,445; and5,839,108.
E.Digital is represented by Duane Morris LLP and Siebman Reynolds Burg Phillips & Smith LLP.
Samsung is represented by Potter Minton PC and Kirkland & Ellis LLP.
The case is e.Digital Corp. v. Casio America Inc. et al., case number 2:08-cv-00093, in the U.S. District Court for the Eastern District of Texas.
--Additional reporting by Christopher Norton
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