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Published on 11/6/2012 in the Prospect News Distressed Debt Daily.

Mosaid looks to clarify Elpida recognition order amid patent dispute

By Caroline Salls

Pittsburgh, Nov. 6 - Mosaid Technologies, Inc. is seeking clarification of Elpida Memory, Inc.'s foreign case recognition order, according to a Tuesday filing with the U.S. Bankruptcy Court for the Southern District of New York.

As an alternative to clarifying the order, Mosaid is asking the court to modify the stay imposed by Elpida's bankruptcy filing so Mosaid can file a patent infringement lawsuit.

Specifically, Mosaid is seeking clarification that the recognition order does not prohibit it from filing a lawsuit against Elpida, its trustees and others.

According to the motion, "Elpida willfully infringed many of Mosaid's patents through the sale of its DRAM products in the United States and elsewhere" before the filing of its Japanese corporate reorganization proceeding.

"This infringement has continued unabated post-petition and now includes the infringement of additional patents owned by Mosaid," the motion said.

"Elpida can no longer use its Japanese reorganization proceeding to shield itself from the consequences of such infringement."

Mosaid said it will file a separate action against Elpida in connection with the alleged post-bankruptcy infringement.

Mosaid said Elpida's alleged pre-bankruptcy patent infringement is at issue in a pending lawsuit filed on May 10, 2011 in the U.S. District Court for the Eastern District of Texas.

The Texas lawsuit is currently stayed by the recognition order.

A hearing is scheduled for Nov. 20.

Elpida, a Tokyo-based manufacturer of DRAM integrated circuits, filed for bankruptcy on March 19, 2012 to gain recognition of its Japanese proceedings. Its Chapter 15 case number is 12-10947.


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