Networker

Re: [Networker] EMC buy DataDomain

2009-07-10 00:04:19
Subject: Re: [Networker] EMC buy DataDomain
From: "W. Curtis Preston" <wcplists1 AT GMAIL DOT COM>
To: NETWORKER AT LISTSERV.TEMPLE DOT EDU
Date: Thu, 9 Jul 2009 20:56:52 -0700
Siobhán Ellis said:

>Data domain licensed some of its code from Rock Soft, now owned by Quantum.


I've been debunking this a lot over the last couple of days.

1. Rocksoft patented some stuff (specifically variable-length dedupe)
2. Quantum bought Rocksoft
3. Meanwhile, Data Domain built products with similar idea
4. Quantum waited until Data Domain filed the S-1 to go public and sued
5. Data Domain, not wanting to derail their IPO, settled the suit

They have not licensed any code.  They paid off a lawsuit that said they
were infringing on a patent.  So have other companies.  

One interesting thing is that once EMC owns Data Domain, THEY will have
effectively paid off Quantum for any patent infringement problems, allowing
them to infringe on their current (soon to be former) partner's patents all
they want with impunity.  Neat trick.

>EMC have a fairly significant investment in Quantum.

They loaned them a little over $100M to keep the doors open, and they paid
some advance royalties.  It was technically an investment, but the main one
is just a loan, not a purchase of shares or anything like that.  If EMC is
still reselling Quantum product in six months, I'll be really surprised.

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