Look for the Logo for Certified DLT Tape Products
||Online News published in DMReview.com
October 31, 2001
A California Superior Court ruled October 30, 2001, that it will grant a preliminary injunction requiring Imation Corporation to pay Quantum Corporation royalties for the use of Quantums trade secrets while Imation continues with its federal antitrust claim against Quantum.
Quantum contends that Imation did not have the ability to manufacture quality DLT tapes when they began the licensing process three years ago. In making his ruling, Honorable William J. Elfving found, "A preponderance of the evidence established that Imation is using Quantums valuable trade secrets without authorization. When Imation first came to Quantum in late 1998, it was incapable of making high quality, highly reliable tape cartridges for use in Quantum DLT tape drives. Over the last two years, Quantum has provided Imation with trade secrets, tools and resources necessary to become a qualified manufacturer of DLT tape cartridges. As a result, Imations tape has improved dramatically. After two years of collecting Quantums trade secrets and benefitting from their use, Imation has repudiated the License Agreement and is using Quantums trade secrets without authorization."
Frank Russomanno, vice president of Data Storage Media and Services for Imation comments, "We initiated our actions because Quantum is illegally attempting to keep Imation out of the market, not because of royalty payments."
Analysts estimate that 14-16 million tape cartridges are sold each year for data recovery in the enterprise storage market. Phil Ritti, vice president and general manager of the Quantum DLT Tape Media division warned end users to look for the logo. "The DLT Tape target logo means that the product meets rigourous standards, complies with warranties and ensures data protection. Without the logo you have no assurance. That risk is not prudent given the mission-critical nature of the applications.
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