Kilopass Says Business Tort Case a Legal Maneuver; Remains Focused on Winning Patent Infringement Trial

Sidense Obfuscates Patent Infringement Lawsuit

SANTA CLARA, Calif., September 7, 2011 – Kilopass Technology Inc., a leading provider of semiconductor logic non-volatile memory (NVM) intellectual property (IP), today issued the following statement regarding the business tort lawsuit filed on August 19, 2011 against Kilopass and its CEO, Charlie Cheng.  Kilopass believes that there is no merit to the allegations of the complaint and that Sidense’s action is the result of the weakness of its patent infringement defense.

“At this stage of the case, especially as Sidense has not delivered on its claim to its licensees that the patent infringement case will go away, it is not surprising that Sidense filed a frivolous lawsuit in an attempt to confuse the market place and divert attention away from the patent infringement case,” said Mark Hogge, Kilopass’ legal counsel at SNR Denton. “In my opinion, the business tort allegations are unsubstantiated. We are confident that we will prevail in both legal proceedings.”

Sidense’ business tort lawsuit seems designed to distract the public, with many of the complaints citing press releases which were issued in 2010.  Kilopass, on the other hand, has focused on providing Sidense licensees a transition path to patent protected technologies.  Kilopass does not believe any of these communications to be out of the ordinary course of business.

“Kilopass is in the IP licensing business.  We want to have a friendly and constructive business relationship with all licensees, but we must protect our intellectual property,“ said Charlie Cheng, CEO of Kilopass Technology Inc. “At the heart of this matter is a patent lawsuit not a business tort.  With the issuance of the Markman Order, a significant legal milestone has been completed and we now look forward to defending our patents against infringement at trial.”

About Kilopass

Kilopass Technology, Inc., a leading supplier of embedded NVM intellectual property, leverages standard logic CMOS processes to deliver one-time programmable (OTP) and many-time programmable (MTP) memory. With 58 patents granted or pending and more than 800,000 wafers shipped from a dozen foundries and Integrated Device Manufacturers (IDMs), Kilopass has more than 100 customers in applications ranging from storage of firmware and security codes to calibration data and other application-critical information.  The company is headquartered in Santa Clara, Calif.  For more information, visit www.kilopass.com or email info@kilopass.com.