Iomega Corp. announced in a press release that a Paris court has granted a preliminary injunction against competitor SyQuest Technology Inc. and its French subsidiary SyQuest SARL.
The announcement is the second in two weeks from Iomega regarding lawsuits it had filed in France against competitors.The injunction requested by Iomega asked the court to prevent the import and sale of SyQuest's SparQ cartridge in France because the cartridge infringed on one of Iomega's recently granted European patents covering the anti-rattle mechanism in Iomega's Jaz cartridges.
The court ordered SyQuest to pay Iomega a damage penalty equivalent to $2,500 for legal costs and $16.50 for each SparQ cartridge it sells after the injunction takes effect.
"This is another important demonstration of Iomega's intellectual property strength," said Iomega president and CEO James E. Sierk. "Iomega's proprietary technologies are among our greatest assets."
SyQuest said in a Wednesday press release it will appeal the French court's decision, noting the French court rejected a similar motion filed by Iomega earlier this year. Iomega at that time was attempting to prevent SyQuest from distributing SyJet 1.5 GB cartridges in that country, the release said.
"This injunction will have minimal impact on our financial performance. The SparQ product was just recently introduced in France and revenue from SparQ sales in the French market does not currently account for a significant portion of the company's revenues," said Tom Tokos, SyQuest executive vice president, general counsel and secretary.
Iomega settled another lawsuit with French competitor Nomai in June.