Western Digital is not going to give the Toshiba without a fight
The tone of the news that Toshiba sells semiconductor business to a consortium that includes Bain Capital, SK Hynix and Apple, for $ 18 billion, could create the false impression that the company Western Digital, also laid claim to the role of the buyer, accepted defeat, and selling valuable asset — the problem is solved. Meanwhile, Western Digital is not going to give in. This is evidenced by a new case to arbitration following immediately for advertisement on Toshiba’s decision. In addition, a separate press release the company Western Digital today revealed the full picture of their legal claims to the partner for joint venture to produce flash memory.
First, the press release noted that SanDisk, a subsidiary of Western Digital, «has long been the for Toshiba a good partner, complying with all obligations.» In addition, once again confirmed the intention to find a mutually beneficial solution to the situation.
According to Western Digital, Toshiba has chosen the wrong line of conduct that violate the rights of the company SanDisk, which last three times appealed to the international arbitration court ICC: may 14 — with the intention of Toshiba to transfer the interests in the JV to a third party, on July 5 in connection with illegal attempts by Toshiba to SanDisk limiting employees access to the resources SP and 20 September — in response to the decision by Toshiba to personally invest in the expansion belonging to the SP production of flash memory. Each appeal will be considered independently.
A feature of the work of the arbitration court are the long terms of consideration of appeals, often reaching two years. Thus, decisions on issues SanDisk is expected no earlier than 2019. The decision of the arbitration may be sent to an ordinary court. If confirmed, the violation of this decision are the legal basis for further claims, for example, demanding compensation.
In its report, Western Digital said that the participation SK Hynix in the consortium with which Toshiba agreed to the deal, increases the risk of leakage of technology, and reminds us that just a few years ago had an unwanted precedent: had Toshiba sue SK Hynix due to the fact that a former employee gave SanDisk SK Hynix Toshiba technical secrets.
In addition, the press release lists recent court decision in favor of SanDisk, which will probably create the idea of the strength of the positions of Western Digital in a dispute with Toshiba.