Supeermicro

Supermicro is a computer hardware corporation based in San Jose, California that designs systems for enterprise and government customers worldwide. It is best known for its server motherboards (ASRock, ASUS) and servers offered by HP Enterprise.

In June 2017, Supermicro filed a trademark infringement lawsuit against three companies: Super Micro Computer Inc., Transmeta Corporation, and Broadcom Corporation. In the suit, they argued that their products were being improperly used in the computer systems of three major U.S.-based international manufacturers: Dell Inc., Hewlett Packard Enterprise Co., Apple Inc. and Lenovo Group Ltd., for the purpose of harming their business. The lawsuit also targeted one Chinese company, Onda Technology Co. Ltd., for using its products in the same systems.

The lawsuit states that Broadcom, which is based in San Jose, California, and Transmeta, which was founded by Ray Young in Spring Hill, Tennessee, were initially not directly involved with Supermicro. But they became entangled with Supermicro after acquiring intellectual property from companies and individuals that began working on these products prior to the acquisition of their intellectual property in 2003.

They claim, among other things, that the intellectual property covers fundamental Internet technology, including the Ethernet and Fibre Channel protocols; software for power management; SDRAM and microprocessor technologies; embedded flash memory controllers; application execution and code development software; data safety, security and high redundancy features in networked computing devices.

Supermicro claims that these companies infringed its patents by making these products part of servers that were sold to Dell, HPE. Apple Inc., Lenovo Ltd., and Onda Technology Co. Ltd. in the U.S., Europe, Asia-Pacific and South Africa under the names of Supermicro Computer Inc., Transmeta Corporation (now known as Skyworks Solutions Inc. after the acquisition of the company by Broadcom in 2015) and Broadcom Corporation.

Supermicro claims they have been losing millions of dollars every year due to the improperly licensed technology, and that it will take years to recover damages and institute new products. The lawsuit is for “liability for infringement” under 35 U.S.C. § 271(e).

Supermicro Corporation is currently a publicly traded company listed on the NASDAQ stock exchange under the symbol SMCI, but it had formerly been traded on the OTCQX Market operated by OTC Markets Group Inc., under the symbol SMCIQF (formerly known as Supermicro Bidding Side, Inc.) until March 28, 2017.

The company’s stock was halted from trading on March 28, 2017 following media reports of a potential credit rating downgrade by Standard & Poor’s on concerns that the IPO had been underwritten for “potential liabilities” related to allegations about Supermicro servers.

In June 2017, Supermicro filed a trademark infringement lawsuit against three companies: Super Micro Computer Inc., Transmeta Corporation and Broadcom Corporation. In the suit, they argued that their products were being improperly used in computer systems of three U.S.-based international manufacturers: Dell Inc.,

Hewlett Packard Enterprise Co., Apple Inc. and Lenovo Group Ltd., for the purpose of harming their business. The lawsuit also targeted one Chinese company, Onda Technology Co. Ltd. for using its products in the same systems. The lawsuit claims that the intellectual property covers fundamental Internet technology, including the Ethernet and Fibre Channel protocols, software for power management, SDRAM and microprocessor technologies.

Prior to this lawsuit, Super Micro Computer Inc., a company that was founded in Santa Clara, California in 1981 and is currently based in San Jose (California), had sold its server motherboards at Dell’s retail stores under the brand name of ASRock. The marketing of these motherboards was discontinued in 2008 along with all other OEMs manufacturing their own motherboards for Dell’s retail store distribution channels after the sale of Dell Inc. to another company called private equity firm Silver Lake Partners LP for over $24 billion.