U.S. International Trade Commission Said Overland Patents Valid

Overland Storage Inc. has received notice that the Administrative Law Judge (ALJ) in the U.S. International Trade Commission (ITC) action brought by Overland Storage against BDT has issued an initial determination affirming that both of Overland’s asserted patents are valid, but finding that BDT has not committed a violation of section 337 of the Tariff Act of 1930.

Overland had alleged that BDT committed section 337 violations based on BDT’s activities relating to its allegedly infringing automated tape libraries.

"Overland is a proven technology leader and innovator within data management and protection and owns a strong patent portfolio of valuable intellectual property that it has developed over 30 years," said Eric Kelly, president and CEO of Overland. "The judge’s favorable ruling on our patents’ validity reinforces our global leadership position in the data storage market, and the ALJ’s decision of no violation under section 337 by BDT does not affect our position in this market. We will continue to protect our valuable assets as we deliver next generation enterprise technology and products to the growing mid-tier segment of the storage industry."

Despite finding both of Overland’s patents valid, the ALJ found no violation of section 337 by reason of infringement and no domestic industry related to one of the two asserted patents. The full decision has not yet been released, which will be confidential and will explain the ALJ’s findings. The full Commission may review and modify the ALJ’s initial determination, which is not a final determination of the ITC action.

The Commission’s final determination in the investigation is expected by October 22, 2012.

On October 18, 2010, Overland filed a patent infringement lawsuit at the ITC against BDT, IBM and Dell claiming infringement of two of its patents, United States Patent Nos. 6,353,581 and 6,328,766. Overland’s accompanying patent infringement action against the same companies, filed in the United States District Court, Southern District of California, was stayed on December 8, 2010, pending the outcome of the ITC action.

A seven-day hearing at the ITC was completed on September 7, 2011. On November 16, 2011, Overland reported that the ITC action and district court action against IBM and Dell had been resolved by settlement. Resolution of the ITC action will not resolve Overland’s patent infringement district court action against BDT. Overland is represented by DLA Piper LLP.

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