Mellanox® Technologies, Ltd. (NASDAQ: MLNX), a leading supplier of high-performance, end-to-end interconnect solutions for data center services and storage systems, announced today that, on December 13, 2013, the Administrative Law Judge (ALJ) of the U.S. International Trade commission (ITC) found that Mellanox’s production and sale of its Active Optical Cable products do not infringe Avago’s U.S. Patent Number 5,596,456, directed to a VCSEL driver, which was asserted against Mellanox by Avago in an ITC complaint (Inv. No. 337-TA-860) filed in September 2012.
In the investigation, Avago sought a ruling that the IPtronics’ drivers utilized in active optical cable products infringed the ‘456 patent. The decision by the ALJ in its initial determination that the IPtronics’ drivers do not infringe the ‘456 patent is a positive outcome for Mellanox and its customers.
“We are pleased with the ALJ’s ruling, which supports our position that Mellanox and IPtronics do not infringe the key patent at issue in the case,” said Eyal Waldman, president and CEO of Mellanox Technologies. “Our customers can expect to continue receiving the same quality products that they have relied upon historically from Mellanox.”
The ALJ did make a finding, however, that certain Mellanox products that contain a particular type of vertical cavity surface emitting laser (“VCSEL”) do infringe another of Avago’s patents, US Patent No. 5,596,595, directed to a VCSEL. Mellanox has asked the ITC to review this initial finding, because, in Mellanox’s opinion, the ALJ did not follow the law in construing the claims under the ‘595 patent. The final determination on this issue is not expected until mid-April. The VCSELs in the products at issue are supplied to Mellanox by third parties.
The proceedings and final resolution of the issues raised by Avago in the ITC are not currently expected to impact Mellanox’s current or planned product offerings or have a material adverse effect on the company’s business, financial position, results of operations or cash flow.