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Crossroads Hits Patent Warpath: Page 2 of 3

This is not the first time that Crossroads has chased other vendors through the courts. In 2006 Dot Hill reached a settlement in a patent dispute with Crossroads concerning patents 6,425,035 and 5,941,972, which control access between hosts and storage devices in a networked storage environment. Under the terms of the settlement, Dot Hill made a $10.5 million cash payment to Crossroads and agreed to pay 2.5 percent ongoing royalties on net sales of products that use Crossroads’s technologies.

When it won its legal battle with Dot Hill, Crossroads vowed to continue what it described as an industry-wide "intellectual property campaign,” which is now coming to fruition.

DLA Piper, the law firm that handled the Dot Hill case, for example, is also involved in the latest Crossroads lawsuit, along with patent specialists Sprinkle Law.

A spokeswoman for Crossroads referred Byte and Switch to Sprinkle Law today, although the Austin, Texas-based firm did not respond to a request for comment.

Crossroads’s decision to start legal action against the likes of Compellent and Storage Engine may have its roots in the company’s recent financial performance. The vendor’s first quarter revenues from IP licensing and royalties were $2.7 million, down from almost $3 million in the same period last year.