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Toshiba suing Imation

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Toshiba is suing Imation and other companies, claiming that they are infringing its recordable DVD patents.

According to reports, Toshiba has identified several distributors and suppliers of recordable DVDs in its suit filed with the US District Court for the Western District of Wisconsin. These are Imation and three other manufacturers: CMC Magnetics and Ritek of Taiwan and their respective marketing subsidiaries in the USA, and Moser Baer India of, no surprise here, India.

Toshiba says that the defendants in the case should have licensing agreements with it or the DVD6C Licensing Group for the technology used in the products. All Imation's recordable DVD formats are included in the suit.

Toshiba wants cash damages, a court injunction to stop the manufacture and supply of the recordable DVDs, or licensing agreements for its technology. Imation, struggling to return to profitability, will not welcome this potential increase in its recordable DVD product costs. It made an operating loss of $7.4m in the first quarter of the year on revenues of $426.2m which were almost 20 percent lower than the first 2008 quarter.

Toshiba has its own need for more money. It lost Y184bn($1.91bn) in the first 2009 quarter on revenues of Y1.67tn($185bn), which were also 20 percent down on the same quarter the previous year. ®

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