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Toshiba Files Patent Infringement Action Against Hynix Semiconductor

9 November, 2004

TOKYO -- Toshiba Corporation today announced that it has filed suit against Hynix Semiconductor in Japan and the United States, for infringement of Toshiba's semiconductor memory patents.

In Japan, Toshiba filed suit against Hynix Semiconductor Japan Inc. for infringement of Toshiba's NAND flash memory patents in the Tokyo District Court, on November 8 (Japan time and US time). Toshiba's suit in Tokyo seeks damages against Hynix's infringement of three NAND-related patents, and an injunction against infringing products.

In the U.S., Toshiba has filed suit against Hynix Semiconductor Inc. and its U.S. subsidiaries for infringement of Toshiba's DRAM and NAND flash memory patents in the U.S. District Court for the Northern District of Texas, on November 8 (U.S. time: November 9 Japan time). The suit seeks damages for infringement of seven Toshiba patents, three related to DRAM and four to NAND, and an injunction against infringing products.

Toshiba and Hynix entered into a patent cross-licensing agreement in August 1996 that included semiconductor products. The companies started negotiation of an extension of the agreement prior to its December 31, 2002 expiration, in which Toshiba sought to secure a reasonable fee for access to its patents. Failure to reach a satisfactory conclusion left Toshiba with no alternative other than to pursue legal recourse.

Toshiba regards protection of intellectual property as an essential means to secure competitiveness in advanced technology for electronics devices and digital media. Commenting on the suit, Mr. Shozo Saito, Vice President, Memory Division, Toshiba Corporation Semiconductor Company said: "Toshiba is a leader in advanced semiconductor memories and holds many significant patents. We are determined to protect our semiconductor intellectual property and prepared to take action against any infringement of our patents. The lawsuit against Hynix is in line with this strategy."

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