Quantum Wins Prelim Injunction Against Imation

If there's one thing that the year 2001 will be remembered for in tech circles, it will be lawsuits. We've seen legal actions involving Microsoft , AMD (that link from The Inquirer), VIA , Intel , Rambus , and a host of others. In the Quantum versus Imation sideshow, it looks like Quantum currently has a leg up, though you can bet that it will be a continuing saga of appeals, bad feelings, and press releases from both sides. Quantum just announced that a California Superior Court has issued a Notice of Ruling stating that it will grant a preliminary injunction requiring Imation to pay Quantum royalties for the use of Quantum's trade secrets. The California State Court in Santa Clara County issued the Notice of Ruling Monday afternoon in response to Quantum's application for a preliminary injunction. In making his ruling, the presiding judge William J. Elfving found that Quantum demonstrated a reasonable probability of success on the merits of its case at trial and that a preponderance of the evidence shows that Imation is using Quantum's trade secrets without authorization. The judge's statement goes on to say that over the last two years, Quantum has provided Imation with the trade secrets, tools and resources necessary to become a qualified manufacturer of DLT tape cartridges. "After two years of collecting Quantum's trade secrets and benefiting from their use, Imation has repudiated the License Agreement and is using Quantum's trade secrets without authorization." Quantum filed its lawsuit on October 3 after Imation announced its intention to sell an unqualified tape media product based on DLTtape IV technology and intended for use in DLTtape IV drives. In its lawsuit, Quantum charged that Imation had engaged in misappropriation of Quantum's trade secrets, in deceptive and misleading advertising, and in unfair business practices. If Quantum prevails at trial, the company will be seeking a permanent injunction, as well as damages.