Toshiba Flash legal battle turns nasty

Toshiba Corporation and its subsidiary, Toshiba America Electronic Components, (TAEC), today filed a notice of appeal to a higher court in response to a recent ruling by the Superior Court of the State of California.

The case concerns the alleged misappropriation of Nand Flash-related trade secrets from Lexar Media.

The legal spat began in November 2002 when Lexar Media filed suit in the Superior Court of the State of California alleging theft of trade secrets and breach of fiduciary duty by Toshiba Corporation and TAEC.

Toshiba's appeal comes after the Superior Court of the State of California granted a new trial over possible damages on the ground that there was insufficient evidence to support a judgment.

Toshiba said that it is "very pleased" with the court's ruling last Friday, throwing out what it said was an erroneous verdict on damages.

However, the electronics giant added: "Toshiba is appealing other rulings in an effort to correct what we believe to be erroneous verdicts on the trade secret and breach of fiduciary liability claims.

"We have strongly contested the allegations and denied wrongdoing throughout the proceedings, and will continue to pursue all legal avenues to arrive at a just outcome to this matter.

"Toshiba was a principal innovator in Nand Flash memory technology in the 1980s and has been a pioneer throughout its development. Flash memory remains a strategic product for Toshiba and one in which Toshiba owns original technologies."

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