Court dismisses YMTC lawsuit over Micron-related claims
WASHINGTON, Aug. 14 (Reuters) - Chipmaker Micron Technology and public affairs firm DCI Group won a decision dismissing a U.S. lawsuit filed last year by China-based semiconductor producer Yangtze Memory Technologies that alleged they spread false claims that YMTC's chips threaten U.S. national security.
Here are the details:
The lawsuit alleged Idaho-based Micron and DCI violated the federal Lanham Act, which bars deceptive trade practices such as false advertising, by publishing and disseminating “a portfolio of falsehoods” suggesting the Chinese tech company installed “spyware” on chips that are used in mobile phones.
U.S. District Judge Carl Nichols in Washington ruled on Thursday that the statements challenged in the lawsuit, published in 2021 and 2022 by a website called China Tech Threat, were not commercial speech as required under the Lanham Act.
YMTC had argued that the company’s founding in China “does not mean that it is a tool of the Communist Party or the Chinese military.” It said the published statements harmed the company by causing it to lose business opportunities. YMTC has denied that its technology is for military use.
The company said it suffered “the loss of millions of dollars in sales to leading computer and consumer electronics manufacturers in the United States and abroad.”
Nichols concluded that the statements at issue in the case are “political speech expressing a point of view, not commercial speech attempting to promote a good or service.”
In seeking dismissal of the lawsuit, Micron told Nichols that “the law is not a tool to stifle political advocacy.” DCI called YMTC's lawsuit an effort to use the courts "to intimidate and silence its critics." Micron and DCI have denied any wrongdoing.
Micron declined to comment. DCI, based in Washington, and lawyers for YMTC did not immediately respond to requests for comment.
The case is Yangtze Memory Technologies Inc v. Micron Technology Inc and DCI Group AZ LLC, U.S. District Court for the District of Columbia, No. 1:25-cv-01795-CJN.
For YMTC: Robert Schwartz and David Eiseman of Quinn Emanuel Urquhart & Sullivan
For Micron: Hagan Scotten and Doug Dixon of Hueston Hennigan
For DCI: Dale Giali and Michael Resch of King & Spalding.
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