Diablo suffers another legal setback in Netlist battle

With a March court date looming, Ottawa’s Diablo Technologies has lost another legal battle against California-based Netlist.

The U.S. Court of Appeals for the Federal Circuit denied Diablo’s emergency motion Wednesday to stay a preliminary injunction blocking the company from providing flash memory storage solution manufacturer SanDisk with a chipset for its ULLltraDIMM solid-state drive.

The court will allow SanDisk to sell its existing inventory of ULLtraDIMMs that use chipsets purchased from Diablo before the Jan. 12 injunction. Under the ruling, SanDisk cannot buy any more chipsets from Diablo.

Netlist has accused Diablo of trade secret misappropriation and breach of contract. The case will go before a jury March 9.

“We are confident of prevailing at trial and securing a permanent injunction that will prevent future unauthorized use of Netlist’s intellectual property,” Netlist CEO C.K. Hong said in a statement.