ITC Remands Patent Infringement Case for Consideration of GSI’S Infringement and Unenforceability Arguments

  ITC Remands Patent Infringement Case for Consideration of GSI’S Infringement
  and Unenforceability Arguments

    ITC Will Review Initial Determination Following Judge’s Further Ruling

Business Wire

SUNNYVALE, Calif. -- December 24, 2012

GSI Technology, Inc. (NASDAQ: GSIT) today reported that the International
Trade Commission (the “ITC”) has determined to review the initial
determination of Chief Administrative Law Judge Charles E. Bullock in the
patent litigation between GSI and Cypress Semiconductor Corp. pending before
the ITC. The ITC remanded the case to Judge Bullock to consider arguments by
GSI and the other respondents in the case that the patents at issue are
invalid and unenforceable and to rule on these arguments prior to the
Commission’s review.

The ITC investigation was instituted in July 2011 in response to a complaint
filed by Cypress. Cypress’ complaint alleged that GSI products, including its
Sigma DDR and SigmaQuad families of static random access memory (“SRAM”)
products, infringe four Cypress patents and sought an order excluding the
allegedly infringing SRAMs, and products containing them, from entry into the
United States and permanent orders directing GSI and other respondents (a
customer and a distributor) to cease and desist from selling these products in
the United States. An evidentiary hearing before Judge Bullock took place in
March 2012.

In his initial determination, issued on October 25, 2012, Judge Bullock held
that the importation of GSI’s SRAM products, and products containing them, and
the sale within the United States of such products, have not violated
applicable federal law with respect to any of the four patents that Cypress
had alleged were infringed. Because he found that the accused products do not
infringe any of the asserted patent claims, Judge Bullock did not consider or
rule on the additional arguments of GSI and the other respondents that the
Cypress patents are invalid and unenforceable. Detailed findings in support of
Judge Bullock’s determination were subsequently released.

On November 7, 2012, Cypress filed a petition for review of the initial
determination by the full Commission, and GSI and the other respondents filed
a contingent petition for review seeking a ruling on the invalidity and
unenforceability arguments as well as additional bases for finding
non-infringement.

In a notice issued on December 21, 2012, the ITC announced that it had
determined to review Judge Bullock’s initial determination, but remanded the
investigation to Judge Bullock to consider and rule on the invalidity and
enforceability issues in advance of the ITC review.

Lee-Lean Shu, GSI’s President and Chief Executive Officer, commented that
“Commission review of initial determinations is common in ITC investigations
of this type, and we believe that the Commission will uphold Judge Bullock’s
ruling that our products do not infringe Cypress’ patents, in light of the
Judge’s original findings as well as the additional bases for non-infringement
set forth in our petition. We also have strong arguments that the patents are
invalid and unenforceable, and we are pleased that these arguments will be
considered and ruled upon as well. We believe that Judge Bullock’s resolution
of the remanded issues will strengthen the record in our favor in advance of
the Commission’s review and provide alternative bases for the Commission to
uphold the initial determination.” On a related matter, Shu noted that “We
continue to vigorously pursue our antitrust case against Cypress that is
pending in the U.S. District Court for the Northern District of California.”

About GSI Technology

Founded in 1995, GSI Technology, Inc. is a leading provider of
high-performance SRAM products primarily incorporated in networking and
telecommunications equipment. Headquartered in Sunnyvale, California, GSI
Technology is ISO 9001 certified and has worldwide factory and sales
locations. For more information, please visit www.gsitechnology.com.

Contact:

GSI Technology, Inc.
Douglas M. Schirle, 408-331-9802
Chief Financial Officer
or
Silverman Heller Associates
Philip Bourdillon or Gene Heller, 310-208-2550
 
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