Scanner Technologies Announces Patent Infringement Suit Against nVidia Corporation

[dracos]

Scanner Technologies Announces Patent Infringement Suit Against nVidia Corporation

MINNEAPOLIS--(BUSINESS WIRE)--Sept. 18, 2006--Scanner Technologies (OTCBB:SCNI) today announced it has filed a lawsuit in the United States District Court, Eastern District of Texas against nVidia Corporation claiming willful and deliberate infringement of U.S. Patents numbered 7,079,678 and 7,085,411 which disclose methods of three-dimensional inspection that allow ball grid array ("BGA") devices to be manufactured more precisely and efficiently.


U.S. Patent 7,079,678, which is assigned to Scanner Technologies, is entitled "Electronic Component Products Made According to a Process that Includes a Method for Three Dimensional Inspection" and discloses a patented process which is directed to a step in the manufacture of a BGA device.

U.S. Patent 7,085,411, also assigned to Scanner Technologies, is entitled "Method of Manufacturing Electronic Components Including a Method for Three Dimensional Inspection," discloses a method of manufacturing a BGA device.

The complaint alleges that nVidia has sold and/or is presently selling throughout the United States infringing BGA devices that are covered by one or more claims of the Scanner Patents. The complaint also alleges that nVidia has induced others to infringe. These BGA devices are a component in graphics cards, motherboards, computers, video game consoles, cell phones and handheld devices that are sold in the United States.

In addition to requesting preliminary and permanent injunctions, the complaint asks the court to award Scanner all damages it is entitled to recover, including reasonable royalties on infringing products, treble damages and attorneys' fees.

Elwin Beaty, President and CEO of Scanner Technologies stated "Scanner has been developing, manufacturing and selling vision equipment for the semiconductor industry since 1990. We believe that it is critical to protect our patented innovations, and accordingly took these actions today."

About Scanner Technologies Corporation:

Scanner is a New Mexico corporation that invents, develops and markets vision inspection products that are used in the semiconductor industry for the inspection of integrated circuits. Scanner's headquarters are located in Minneapolis, Minnesota and has a manufacturing facility in Tempe, Arizona. Scanner's stock is traded on the Over-The-Counter Bulletin Board under the symbol "SCNI." For more information please visit www.scannertech.com.


DIGG THIS STORY! (http://www.digg.com/tech_news/Scanner_Technologies_Announces_Patent_Infringement _Suit_Against_nVidia_Corp)

[Kougar]

Hmm, I still don't see how they can specifically target nVidia, because even ATI and Intel use BGA processes for all of their CPUs and GPUs and chipsets.

The suit seems to be about how nVidia inspects their BGA solder, but is suspiciously general about it.

[GIBSON]

I think the other companies pay licenses to those guys, not sure though

[Kougar]

Yeah, they do. Here's some more info on this, it presents it a little differently. http://www.dailytech.com/article.aspx?newsid=4205 (http://www.dailytech.com/article.aspx?newsid=4205)

I think I saw a bunch of these in a Foxconn or ASUS motherboard manufacturing plant, during a factory tour article...


http://images.dailytech.com/nimage/2529_scannertech_vf.jpg

[Scott]

Everybody wants to make a dime and the easiest way anymore seems to be lawsuits. Ever wonder why companies have to charge so much for stuff, it is the money they have to keep set back for the lawyers and for settlements they may have to pay.

[nimnorm]

I work for a small company that designs and sells board-level products. Scanner Technologies has threatened us with legal action for patent infringement simply for using bga devices on our boards!

Please note: we don't manufacture bga devices, nor do we have any means for discovering what processes and equipment were used to manufacture the bga parts we buy.

Elwin Beaty of Scanner Technologies informed us that:
(1) Scanner has determined that the majority of bga parts on the planet are made using equipment that infringes their patents, and
(2) any bga devices made on infringing equipment are tainted and thus also infringe, and
(3) my company uses bga devices, and so
(4) there is a high statistical probability that my company is guilty of infringement. We were told that the burden of proof of our innocence rests entirely on our shoulders and, absent such proof, we should expect serious legal action very soon unless we quickly agree to license the use of Scanner's patents and pony up our first annual license fee.

Scanner may have a legitimate gripe against companies that make competing bga manufacturing systems, but IMHO it's a stretch to extend this animosity to the bga manufacturers who use those competing systems to manufacture bga's, and nothing short of extortion to threaten bga device users!

For the sake of Mr. Beaty's spiritual well-being, I hope that he is only serving as an unwilling frontman for other, less civilized business associates.