News

11 Oct 2006

DLA Piper successfully represents Crossroads Systems in patent dispute against Dot Hill Systems

Agreement calls for $10.5 million cash payment and 2.5 percent ongoing royalty

Press Release

(AUSTIN, Texas) - DLA Piper US LLP today announced that the firm has successfully represented Crossroads Systems, Inc., a leading manufacturer and seller of storage router products, in a patent dispute against Dot Hill Systems Corp.  According to a settlement agreement reached on the day trial was scheduled to begin, Crossroads will receive a one-time $10.5 million cash payment and a 2.5 percent ongoing royalty on net sales of products utilizing Crossroads' patented access controls technology.

Originally filed on October 17, 2003, the lawsuit claimed that Dot Hill sold solutions that violated Crossroads' U.S. patents Nos. 5,941,972 and 6,425,035, which relate to the ability to control access between hosts and storage devices in a networked storage environment.  In exchange for the one-time cash payment and running royalty, Crossroads granted Dot Hill a nonexclusive license to both patents and the parties settled all claims arising out of the litigation.

"We are proud to have represented Crossroads in this complex matter and to have successfully resolved the case," said John Guaragna, a patent litigation lawyer and partner who led the team that represented Crossroads. 

In addition to Guaragna, who is based in DLA Piper's Austin office, the team included trial lawyers from the firm's Austin, Philadelphia and San Diego offices, among them partners John Allcock and Sean Cunningham.  Allcock and Cunningham are based in DLA Piper's San Diego office.

DLA Piper's intellectual property practice offers clients comprehensive IP services, including trademark, copyright, patent prosecution, IP due diligence, strategic IP asset management and IP litigation services.  The firm has more than 425 IP attorneys globally and 220 IP attorneys in the U.S., which ranks the group among the largest IP practices in the world and the U.S.

About Crossroads Systems, Inc. (www.crossroads.com, 800-BUY-CRDS / 800.643.7148)
With headquarters in Austin, Texas, Crossroads Systems is a leading provider of Business Information Assurance (BIA) solutions. Solutions from Crossroads serve the growing needs of data storage, business continuity, disaster recovery, information protection, risk management and business information assurance markets. Crossroads' offerings are designed to help companies store, manage and ensure the security, resiliency and access to their critical enterprise information. Crossroads' products are embedded in solutions from companies such as EMC, HP, Quantum and SUN.  Crossroads (CRDS.PK) is currently traded on the Over The Counter ("OTC") Bulletin Board and is a member of several key industry associations such as the Storage Networking Industry Association (SNIA).

About DLA Piper
DLA Piper has 3,200 lawyers and 62 offices in 24 countries throughout the U.S., U.K., Continental Europe, Middle East and Asia. It has leading practices in commercial, corporate and finance, human resources, litigation, real estate, regulatory and legislative, and technology, media and communications.

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CONTACTS:
John Guaragna, Partner, DLA Piper, 512.457.7125
Aaron Schoenherr, Media Relations, GreenTarget Global Group, 312.252.4103