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Imation fined $11 million for patent infringement violation

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February 28, 2017

A court jury in Delaware has determined that Imation must pay $11 million in damages to a firm named Io-Engine for a patent infringement violation.

The U.S. patent in question is number 8,539,047. It consists of a method and system for a tunnelling USB device to access a specific point in a data stream.

Io-Engine owns the patent involving secure USB devices, and had alleged that Imation had wilfully infringed the intellectual property rights in its IronKey products.

Those devices feature proprietary on-board storage and processing capabilities, the company asserts.

But the jury did find that the infringement did take place but was accidental and not wilful.

Nevertheless, it awarded Io-Engine the sum of $11 million in damages. The technology described in the patent was invented by Scott McNulty who founded the company.

Ioengine describes its technology: ``IOENGINE provides portable devices and their users with a secure and user friendly system to manage a broad range of applications and services including the following: advertising, biometric verification, blockchain management, data mining, data storage, digital currency, downloads, e-commerce, education, IoT, log-in technology, messaging, mobile payments, printing, registration, remote access, streaming, sync, telecommunications controls, transportation controls, VR/AR networking and more.``

The original patent case was filed by ioengine in December 2014. At the time, Imation denied any wrongdoing or infringement.

Imation sold its IronKey business to Kingston Memory in February of last year. It originally acquired the IronKey product line in September 2011.

Glassbridge Enterprises is an investment management company and all that is left of Imation after it sold off all its consumer and enterprise storage businesses, including Nexsan.

Source: IO-Engine.


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