Toshiba reports it's sueing world second largest NAND manufacturer, South Korean SK Hynix for unauthorized obtaining and using confidential information related to NAND flash memory technology. Toshiba has started a civil suit to seek for compensation of alleged damages.
Earlier today the Tokyo police arrested a man suspected of sharing proprietary data from Toshiba Corp with a 'South Korean company'. Later today it became clear that this 'South Korean company' is actually SK Hynix.
The man previously worked as an engineer for Sandisk, with whom Toshiba jointly develops and manufacturers NAND chips. When he worked for the company in 2008 he acquired confidential information on NAND flash memory. After he left Sandisk and started to work for his new employer SK Hynix he supplied the confidential data to them.
Today the man was arrested after Toshiba and Sandisk filed a criminal complaint.
Although SK Hynix is a business partner of Toshiba, the companies are also competitors in NAND flash memory. Given the scope and importance of the misappropriated technical data involved, Toshiba states that it "has no reasonable option other than to seek legal redress."
The company continues to write, "Moving forward, Toshiba will construct a more robust system for protecting its intellectual property and preventing its loss, and respond resolutely to unfair competition, in order to maintain the advanced technical competence that is the source of its competitive strength."
It's not the first time Toshiba and SK Hynix are in a legal fight over NAND technology. In 2004 Toshiba filed a patent infringement suit against SK Hynix which resulted in SK Hynix having to stop sales of NAND memory in Japan and paying $76,000 in damages to Toshiba in 2006.
