Brocade Awarded Permanent Injunction in Intellectual Property Theft Case Against A10 Networks

Fri Jan 11, 2013 2:22pm EST

* Reuters is not responsible for the content in this press release.

SAN JOSE, CA, Jan 11 (Marketwire) -- 
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. In
addition, the jury found A10 liable for:


--  Direct copying of proprietary Brocade code used in Brocade's
    ServerIron products for use in A10 products.
--  Misappropriation of four trade secrets involving techniques used in
    the Brocade ServerIron products that A10 applied for use in its AX
    series.
--  Unfair competition based on interference with the contract of an
    engineer while he was employed at Foundry Networks, which Brocade
    acquired in late 2008.

    

The Court confirmed all liability findings by the jury against A10
and confirmed the $60 million in damages for copyright infringement. The
Court further confirmed that there was sufficient evidence against A10 to
award another $50 million in lost profits damages on the patent claims.
In order to clarify the amount of additional damages that A10 will be
liable for, the Court has granted a new trial to determine only the
amounts of patent and punitive damages.

    "We appreciate the Court's careful attention to the evidence and its
willingness to enforce important intellectual property rights," said
Tyler Wall, vice president and general counsel at Brocade. "The jury
found A10 guilty of broad-based intellectual property infringement and
unfair competition. We are very pleased that this permanent injunction
will stop A10 from unlawfully using Brocade's patents."

    Cautionary Statement
 This press release contains statements that are
forward-looking in nature, including statements regarding A10's potential
liabilities to Brocade. These statements are based on current
expectations on the date of this press release and involve a number of
risks. The risks include, but are not limited to, A10's solvency or
potential insolvency and ability to satisfy any final judgment, further
jury trial on damages issues and further judicial review of the matter.
Certain of these and other risks are set forth in more detail in our Form
10K for the year ended October 27, 2012 in "Item 1A. Risk Factors".
Brocade does not assume any obligation to update or revise any such
forward-looking statements, whether as the result of new developments or
otherwise.

    About Brocade
 Brocade (NASDAQ: BRCD) networking solutions help the
world's leading organizations transition smoothly to a world where
applications and information reside anywhere. (www.brocade.com) 

    Copyright 2013 Brocade Communications Systems, Inc. All Rights Reserved.

    ADX, AnyIO, Brocade, Brocade Assurance, the B-wing symbol, DCX, Fabric
OS, ICX, MLX, MyBrocade, OpenScript, SAN Health, VCS, VDX, and Vyatta are
registered trademarks, and HyperEdge, NET Health, The Effortless Network,
and The On-Demand Data Center are trademarks of Brocade Communications
Systems, Inc., in the United States and/or in other countries. Other
brands, products, or service names mentioned may be trademarks of their
respective owners.

    Notice: This document is for informational purposes only and does not set
forth any warranty, expressed or implied, concerning any equipment,
equipment feature, or service offered or to be offered by Brocade.
Brocade reserves the right to make changes to this document at any time,
without notice, and assumes no responsibility for its use. This
informational document describes features that may not be currently
available. Contact a Brocade sales office for information on feature and
product availability. Export of technical data contained in this document
may require an export license from the United States government.

    

CONTACTS
Media Relations
Brocade
John Noh
Tel: 408.333-5108
jnoh@brocade.com

Investor Relations 
Brocade
Robert Eggers
Tel: 408.333.8797
reggers@brocade.com 

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