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Brocade Awarded a New Permanent Injunction for Trade Secret Theft Against A10 Networks

SAN JOSE, CA--(Marketwire - Feb 13, 2013) - Brocade ( NASDAQ : BRCD ) today announced that a San Jose federal court denied A10 Networks' request to stay a new permanent injunction originally issued on Jan. 23, 2013, barring A10 from using four Brocade trade secrets a jury found A10 stole and incorporated in its AX series products. This order followed previous rulings for a permanent injunction for patent infringement as well as $60 million in damages for copyright infringement.

As a result, A10 is now prohibited from "making, using, selling, offering to sell, or importing any AX series application delivery controller" that uses Brocade's trade secrets or infringes on Brocade's patents.

On Aug. 6, 2012, a jury in the case of Brocade v. A10 Networks found for Brocade on four claims of patent infringement involving technologies for Global Server Load Balancing and High Availability and found that the A10 AX Series line of load balancers infringe on these specific patents. In addition, the jury found A10 liable for:

  • Direct copying of proprietary Brocade code used in Brocade's ServerIron products for use in A10 products.
  • Misappropriation of four trade secrets involving techniques used in the Brocade ServerIron products that A10 applied for use in its AX series.
  • Unfair competition based on interference with the contract of an engineer while he was employed at Foundry Networks, which Brocade acquired in late 2008. 

On Jan. 10, 2013, the Court issued a permanent injunction against A10 permanently enjoining A10 from infringing on Brocade's patents while confirming all liability findings by the jury against A10 as well as the $60 million in damages for copyright infringement. On Jan. 23, 2013, the Court issued a new permanent injunction for trade secret misappropriation, "enjoining further possession and use of the misappropriated trade secrets." In separate rulings on Jan. 11 and Feb. 12, 2013, the Court denied A10's requests to stay the patent and trade secret permanent injunctions, respectively, thereby putting them into effect immediately.

"This is a clear and decisive victory for Brocade covering a broad range of intellectual property theft by A10. We are very pleased with these rulings and we are again appreciative of the Court's careful attention to the evidence and its willingness to enforce intellectual property rights," said Tyler Wall, vice president and general counsel at Brocade.

Cautionary Statement
This press release contains statements that are forward-looking in nature, including statements regarding A10's potential liabilities to Brocade. These statements are based on current expectations on the date of this press release and involve a number of risks. The risks include, but are not limited to, A10's solvency or potential insolvency and ability to satisfy any final judgment, further jury trial on damages issues and further judicial review of the matter. Certain of these and other risks are set forth in more detail in our Form 10-K for the year ended October 27, 2012 in "Item 1A. Risk Factors". Brocade does not assume any obligation to update or revise any such forward-looking statements, whether as the result of new developments or otherwise.

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