In March 1998, SanDisk sued Lexar in California alleging that
Lexar's technology, which is used in flash memory for digital
cameras, infringed a SanDisk patent. Lexar argued that SanDisk had
always promoted its technology as open source – which seemed
contradictory to its patent protection. However, in resolution of
the case, Lexar has acknowledged that SanDisk's patent is indeed
valid and that it was infringed by Lexar's “CompactFlash” and “PC
Card” products.
Lexar agreed to pay lump sum payment of $8 million for royalties
due on the patent.
In a separate case in September this year, Lexar sued SanDisk in
Delaware alleging that SanDisk's own “SmartMedia” digital film
products infringe a Lexar patent. SanDisk has agreed to pay Lexar a
lump sum payment of $2 million for a fully paid up license for use
of the patent in its Smart Media products.
