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UPDATE: Brocade Awarded Permanent Injunction in Intellectual Property Theft Case Against A10 Networks
SAN JOSE, CA, Jan 11, 2013 (MARKETWIRE via COMTEX) --
Brocade (NASDAQ: BRCD) today announced that a San Jose federal court
confirmed a $60 million damages verdict against A10 Networks and
entered an order permanently enjoining A10 from infringing on
Brocade's patents involving technologies for Global Server Load
Balancing and High Availability. The Court enjoined A10 from "making,
using, selling, or offering to sell in the United States, or
importing into the United States any AX series application delivery
controller that includes features that infringe" on these asserted
claims.
Further, A10 has been ordered to "notify all distributors, customers,
or third-parties who have ordered, received, or purchased any AX
series application delivery controller from A10 or any affiliated
entity" about the issuance of this order within 10 business days.
On Aug. 6, 2012, a jury in the case of Brocade v. A10 Networks found
for Brocade on four claims of patent infringement involving
technologies for Global Server Load Balancing and High Availability
and found that the A10 AX Series line of load balancers infringe on
these specific patents. In addition, the jury found A10 liable for:
-- Direct copying of proprietary Brocade code used in Brocade's
ServerIron products for use in A10 products.
-- Misappropriation of four trade secrets involving techniques used in
the Brocade ServerIron products that A10 applied for use in its AX
series.
-- Unfair competition based on interference with the contract of an
engineer while he was employed at Foundry Networks, which Brocade
acquired in late 2008.
The Court confirmed all liability findings by the jury against A10 and
confirmed the $60 million in damages for copyright infringement. The
Court further confirmed that there was sufficient evidence against
A10 to award up to another $50 million in lost profits damages on the
patent claims. In order to clarify the amount of additional damages
that A10 will be liable for, the Court has granted a new trial to
determine only the amounts of patent and punitive damages.
"We appreciate the Court's careful attention to the evidence and its
willingness to enforce important intellectual property rights," said
Tyler Wall, vice president and general counsel at Brocade. "The jury
found A10 guilty of broad-based intellectual property infringement
and unfair competition. We are very pleased that this permanent
injunction will stop A10 from unlawfully using Brocade's patents."
Cautionary Statement
This press release contains statements that are
forward-looking in nature, including statements regarding A10's
potential liabilities to Brocade. These statements are based on
current expectations on the date of this press release and involve a
number of risks. The risks include, but are not limited to, A10's
solvency or potential insolvency and ability to satisfy any final
judgment, further jury trial on damages issues and further judicial
review of the matter. Certain of these and other risks are set forth
in more detail in our Form 10K for the year ended October 27, 2012 in
"Item 1A. Risk Factors". Brocade does not assume any obligation to
update or revise any such forward-looking statements, whether as the
result of new developments or otherwise.
About Brocade
Brocade (NASDAQ: BRCD) networking solutions help the
world's leading organizations transition smoothly to a world where
applications and information reside anywhere. (www.brocade.com)
Copyright 2013 Brocade Communications Systems, Inc. All Rights
Reserved.
ADX, AnyIO, Brocade, Brocade Assurance, the B-wing symbol, DCX,
Fabric OS, ICX, MLX, MyBrocade, OpenScript, SAN Health, VCS, VDX, and
Vyatta are registered trademarks, and HyperEdge, NET Health, The
Effortless Network, and The On-Demand Data Center are trademarks of
Brocade Communications Systems, Inc., in the United States and/or in
other countries. Other brands, products, or service names mentioned
may be trademarks of their respective owners.
Notice: This document is for informational purposes only and does not
set forth any warranty, expressed or implied, concerning any
equipment, equipment feature, or service offered or to be offered by
Brocade. Brocade reserves the right to make changes to this document
at any time, without notice, and assumes no responsibility for its
use. This informational document describes features that may not be
currently available. Contact a Brocade sales office for information
on feature and product availability. Export of technical data
contained in this document may require an export license from the
United States government.
CONTACTS
Media Relations
Brocade
John Noh
Tel: 408.333-5108
jnoh@brocade.com
Investor Relations
Brocade
Robert Eggers
Tel: 408.333.8797
reggers@brocade.com
SOURCE: Brocade
mailto:jnoh@brocade.com
mailto:reggers@brocade.com
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