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Quantum Seeks Court Order to Stop Imation from Selling Media for DLT Drives

Press release from the issuing company

  MILPITAS, Calif., Oct. 3, 2001 – Quantum Corporation (NYSE:DSS), a leading provider of data protection and network storage, today filed suit against Imation Corporation to stop it from selling unqualified tape media based on Quantum’s DLTtape technology and intended for use in DLTtape drives. Quantum’s lawsuit, which was filed this morning in California State Court in Santa Clara County, charges Imation with "extreme and pervasive" misappropriation of trade secrets, deceptive and misleading advertising, and unfair business practices.   "To qualify a DLTtape-based media product, Imation in 1999 signed a license agreement with Quantum that gave it complete access to Quantum’s intellectual property in DLTtape," said Michael Brown, chairman and CEO of Quantum. "Despite that access and the qualification resources and engineering assistance we provided over the past two years to enhance its product, Imation repeatedly failed to achieve DLTtape qualification. Imation is now taking illegal and unfair advantage of our trade secrets to produce and sell an unqualified tape media product. Given such blatantly unauthorized and improper use of Quantum’s intellectual property, Imation’s conduct has left us no choice but to seek immediate legal recourse.   "We appreciate the support expressed by our major customers, our business partners, industry analysts and Quantum shareholders over the past few days. They clearly share our sense of disbelief that Imation would introduce an unqualified tape media product in clear violation of our licensing agreement and then seek to divert attention from its failure to achieve qualification by suing us. They also understand the brand promise of reliability, compatibility and performance represented by the DLTtape logo, and why it is so important that any company seeking to manufacture a DLTtape media product meet Quantum’s rigorous qualification and certification standards."   "Nothing is more important to data center managers than knowing their mission-critical data is protected and absolutely secure," said John Freeman, president of Strategic Marketing Decisions Corp. "DLTtape technology has been the gold standard in data protection. Anything less would be unacceptable."   "Customers have long relied on Quantum's rigorous qualification process," said Dennis Waid, president of Peripheral Research Corp. "They know that DLTtape represents the highest standard of quality and design to ensure their data protection needs."

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