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A10 Hit With Permanent Injunction

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1/11/2013
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SAN JOSE, Calif., Jan. 11, 2013 -- /PRNewswire/ -- A10 Networks, Inc., the technology leader in Application Networking, announced that on January 10, 2013, Magistrate Judge Paul Grewal of the U.S. District Court for the Northern District of California granted A10's motion for a new trial on patent damages and rejected Brocade Communications Systems Inc.'s ("Brocade") request for a broad injunction on the basis that it "overreaches." The Court instead entered a narrowly-tailored injunction against certain products. The Court explicitly held that "[c]ustomers of A10 who have already purchased and continue to use infringing AX Series devices shall not be affected by this injunction." A10 Networks will appeal to the U.S. Court of Appeals for the Federal Circuit to overturn the jury's verdict. Existing customers and users can continue to use and receive support for their current AX products. The Court also held that "if A10 can design around the infringing features, A10 may continue to sell the AX Series without the infringing software," and the public "may continue to enjoy the non-infringing features of the product." To that end, A10 has completed development and testing of applicable, non-infringing elements, and will ship AX Series products with the redesigned software immediately. "We are our industry's leading innovator, and this ruling will not affect our customers, our partners, or our progress," said Lee Chen, CEO of A10 Networks. "We have already designed around the issue, completed rigorous testing of non-infringing software, and will ship AX Series products immediately to serve our outgoing and future orders." In a separate release: SAN JOSE, Calif. -- Brocade (NASDAQ: BRCD) today announced that a San Jose federal court confirmed a $60 million damages verdict against A10 Networks and entered an order permanently enjoining A10 from infringing on Brocade's patents involving technologies for Global Server Load Balancing and High Availability. The Court enjoined A10 from "making, using, selling, or offering to sell in the United States, or importing into the United States any AX series application delivery controller that includes features that infringe" on these asserted claims. Further, A10 has been ordered to "notify all distributors, customers, or third-parties who have ordered, received, or purchased any AX series application delivery controller from A10 or any affiliated entity" about the issuance of this order within 10 business days. On Aug. 6, 2012, a jury in the case of Brocade v. A10 Networks found for Brocade on four claims of patent infringement involving technologies for Global Server Load Balancing and High Availability and found that the A10 AX Series line of load balancers infringe on these specific patents. Brocade Communications Systems Inc.

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