Western Digital Says Strongly Focused On Success Of JVs - Quick Facts

(RTTNews) - Western Digital Corp. (WDC), the joint venture partner of Toshiba Corp. (TOSYY.PK, TOSBF.PK), on Thursday issued a statement regarding Toshiba's recent actions.

The company noted Toshiba's decision to prohibit certain employees from accessing shared databases related to the three NAND flash-memory joint ventures operated with Western Digital's SanDisk subsidiaries as well as, in some instances, access to the JVs' facilities. Also, Toshiba decided to seek a provisional disposition order against Western Digital in the Tokyo District Court.

In its statement, Western Digital said it is strongly focused on the success of the JVs, and over the past 17 years has made substantial investments to support and grow the venture.

"We remain committed to upholding all of our commitments and obligations as a partner in the JVs, including the vigorous protection of trade secrets. Any claims by Toshiba to the contrary are frivolous and without merit. We also note that operations at the JVs are ongoing and SanDisk continues to be entitled to its 50 percent share of the JVs' output," the company said.

Toshiba very recently filed a $1 billion lawsuit against Western Digital, accusing the U.S. hard-drive maker of interfering with the sale process of Toshiba's flash memory chip unit. The lawsuit is likely to complicate the prospects for a sale of the unit.

Western Digital now said it has not received any legal filings and therefore is unable to comment on the specific claims made by Toshiba in Tokyo District Court. However, the process to resolve disputes is clear: under the JV contracts, disputes are required to be resolved through arbitration with the ICC International Court of Arbitration.

The company said the arbitration proceedings are ongoing, and SanDisk's filing for preliminary injunctive relief in the Superior Court of California for the County of San Francisco seeks to ensure that the ICC International Court of Arbitration will be given an appropriate opportunity to resolve the disputes.

Western Digital also reiterated its commitment to jointly invest in the JVs, including Fab 6 in Yokkaichi, Japan.