December 03, 2007
FOR IMMEDIATE RELEASE
'
A Thelen LLP team has again prevailed on behalf of its client Celerity, Inc. in a protracted battle with its main competitor Ultra Clean Holdings, Inc. (NASDAQ: UCTT), and its subsidiary Ultra Clean Technology Systems and Service, Inc., Menlo Park, CA ("UCT").
The technology at issue involves gas delivery systems used in semiconductor fabrication equipment. Celerity and UCT are the two principal suppliers of these gas delivery systems to the semiconductor equipment industry, competing for approximately $800 million in annual sales. In 2003, Celerity came to market with a new fundamental technology for such systems, which quickly became a preferred gas delivery system for major semiconductor equipment manufacturers. Celerity's sales of gas delivery systems based on this new technology climbed immediately, increasing to $120 million per year by 2006. Celerity patented the technology embodied in new gas delivery systems.
In 2005, Celerity learned that UCT was planning to introduce a gas delivery system to compete with its new gas panel technology, which Celerity believed infringed on its patented design. Following a three-week trial in the U.S. District Court for the Northern District of California, a unanimous jury returned a verdict in Celerity's favor, finding Ultra Clean guilty of infringement with its new gas delivery system, and rejecting all of Ultra Clean's invalidity defenses.
However, because Ultra Clean's competitive product had not yet achieved commercial sales at the time the suit was filed, the real battle would be whether Ultra Clean would be able to sell the accused product line in the future. The issue of permanent injunctions has become especially contentious in light of the Supreme Court decision last year in eBay Inc. v. MercExchange, L.L.C., 126 S. Ct. 1837 (2006), which rendered obtaining such injunctions considerably more difficult.
On November 30, 2007, Judge Maxine Chesney granted to Celerity an injunction permanently barring Ultra Clean Technology from making, using, offering for sale, selling, and/or importing the Ultra Clean product, or any product which is not colorably different from the product, into the United States.
Joe Foster, chief technology officer and senior vice president at Celerity, explained: "We are very pleased with the decision of the lawsuit. The unanimous verdict recognizes Celerity's patent portfolio and the value of our licensing program."
Thelen Silicon Valley partners Keith Slenkovich and Bob Camors led the trial team, assisted by associates Christopher Ogden, Karin Frenza, and Tomomi Harkey.
For more information, contact:
Kevin Livingston
National Manager of Public Relations
Thelen LLP
415.369.7224
klivingston@thelen.com
About Thelen
Thelen is an international law firm with approximately 600 attorneys and is widely known for its premier practices in the areas of Construction; Corporate/Finance; Technology, Media, and Communications; Energy; and Complex Litigation. Other premier practice areas of the firm include Real Estate, Labor and Employment, Intellectual Property, Bankruptcy, Domestic and International Tax, and Employee Benefits.
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