Soitec has Prevailed in its Patent Infringement Lawsuit Against MEMC

November 3, 2010

BERNIN, France, November 3, 2010 /PRNewswire-FirstCall/ –

– Confirmation That MEMC Infringed one Soitec’s SOI Patent

– Ruling Supportive to Overall Claim Against MEMC

Soitec successfully obtained confirmation from Court that MEMC did
infringe one of Soitec’s SOI patents from end of 2004 until mid 2006 and now
believes it has adequate grounds to claim for compensation. Concurrently, the
Court ruled that only 15 early-stage Soitec prototype BSOI wafers did
infringe one claim of a MEMC patent. Therefore, Soitec believes that this
ruling supports its overall claim against MEMC.

On Tuesday, November 2, a Wilmington, Delaware United States Federal
Court jury determined that United States Patent No. 6,809,009 (the ’009
Patent) was validly issued. Following the jury verdict, the United States
District Judge presiding over the trial determined MEMC had failed to prove
that the ’009 Patent was unenforceable. Earlier rulings by the Court had
forced MEMC to acknowledge that its SOI manufacturing process had infringed
the ’009 Patent for slightly less than two years, between late 2004 and
mid-2006. Accordingly, the ’009 patent has now been adjudicated valid,
enforceable, and infringed by MEMC. The lawsuit now proceeds to the phase in
which the Court and a jury will respectively determine the injunctive and
monetary relief to which Soitec is entitled. The Company believes that with
the now established infringement it is in a position to seek adequate relief,
which will in any case be finally decided by the jury, irrespective of the
fact that the infringing process was used or not by MEMC for commercial
production. No schedule has been set for the remedy phase of the proceeding.

The jury also determined that certain BSOI wafers sold by the company in
the United States infringed one claim of United States Patent No. 5,834,812
(the ’812 Patent) and that the infringed claim was valid. The evidence at
trial related to two shipments of 80 prototype BSOI wafers, one in 2007 and
one in 2008. Of the 80 wafers, MEMC acknowledged that 65 did not infringe the
’812 Patent. The revenue associated with the 15 remaining wafers totalled
approximately $5,000. Earlier rulings in the case had established that the
’812 Patent is inapplicable to Soitec’s product line. No products other than
the company’s BSOI products have been accused of infringement. The prototype
wafers shipped in 2007 and 2008 have not gone into production, none have been
sold or offered for sale in the United States since 2008, and the company has
no plans concerning future manufacture of this product.

As reported in Soitec’s prior press release, earlier rulings by the Court
also narrowed the scope of certain of the patent claims asserted in the case,
and determined that certain claims in certain additional patents in Soitec’s
portfolio were either invalid or not infringed. Soitec believes these rulings
to have been incorrect. The next step in the process as to these issues will
be the review of the District Court decisions by the United States Court of
Appeals for the Federal Circuit. Soitec believes that its infringement claims
against MEMC’s current SOI process should ultimately be upheld and that
MEMC’s current process should ultimately be determined to infringe valid
claims of the patents that have been asserted in this case. Regardless of how
the issues relating to the specific patent claims at issue in the MEMC
lawsuit are finally settled by the United States Court of Appeals for the
Federal Circuit, Soitec’s product line remains as of this date, the one
enjoying the most complete patent protection worldwide.

About Soitec

Soitec is the world’s leading innovator and provider of the engineered
substrate solutions that serve as the foundation for today’s most advanced
microelectronic products. The group leverages its proprietary Smart Cut(TM)
technology to engineer new substrate solutions, such as silicon-on-insulator
(SOI) semiconductor wafers, which became the first high-volume application
for this proprietary technology. Since then, SOI has emerged as the material
platform of the future, enabling the production of higher performing, faster
chips that consume less power.

Today, Soitec produces more than 80 percent of the world’s SOI wafers.
Headquartered in Bernin, France, with two high-volume fabs on-site, Soitec
has offices throughout the United States, Japan and Taiwan, and a new
production site in Singapore.

Three other divisions – Picogiga International, Tracit Technologies and
Concentrix Solar – complete the Soitec Group. Picogiga delivers advanced
substrates solutions, including III-V epi wafers and gallium nitride (GaN)
wafers, to the compound materials market for manufacturing high-frequency
electronics and other optoelectronic devices. Tracit provides thin-film layer
transfer technologies used to manufacture advanced substrates for power ICs
and microsystems as well as generic circuit transfer technology, Smart
Stacking(TM), for applications such as image sensors and 3D integration. In
December 2009, Soitec acquired 80 percent of Concentrix Solar, the leading
provider of concentrated photovoltaic (CPV) solar systems for the industrial
production of energy. With this acquisition, Soitec has entered the
fast-growing solar market. Shares of the Soitec Group are listed on Euronext
Paris. For more information, visit: http://www.soitec.com.

Soitec, Smart Cut, Smart Stacking and UNIBOND are trademarks of S.O.I.TEC
Silicon On Insulator Technologies.

    International Media Contact

    Camille Darnaud-Dufour

    Investor Relations
    Olivier Brice

    French Media Contact
    Muriel Martin, H&B Communication


Source: newswire

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