Chinese flash memory manufacturer YMTC files a lawsuit against Micron, alleging severe defamation - Micron accused of funding misinformation campaigns against Chinese tech to gain an advantage, claims YMTC.
YMTC, also known as Yangtze Memory Technologies Company, has thrown another legal punch at competitor Micron, claiming the latter is funding a smear campaign. This third lawsuit accuses Micron of hiring the American public affairs firm DCI Group to spread false information and tarnish YMTC's image.
The lawsuit alleges that Micron, having fallen behind YMTC in innovation and performance, resorted to underhanded tactics. Micron is accused of funding DCI Group's China Tech Threat (CTT) website, which purports that YMTC's NAND memory chips contain spyware backdoors to the Chinese Communist Party. Surprisingly, it's not just Micron accused of funding this propaganda; Dell is implicated as well.
This practice, repeatedly referred to in the lawsuit as astroturfing, involves corporate interests disguised as grassroots advocacy. The lawsuit hinges on the claim that Micron has funded the CTT, along with other major U.S. tech firms, and that these purchased claims were unfounded. For example, NAND Flash chips do not have built-in capabilities to send data overseas, as CTT alleges.
This legal battle between YMTC and Micron has been going on since 2022. YMTC was initially labeled an enemy of U.S. tech interests, being blacklisted by the Department of Commerce for potential connections to the Chinese government or military. In response, YMTC appealed to the Chinese Cybersecurity Review Office, banning Micron devices from being used in Chinese government computers.
The first lawsuit was filed in 2023, accusing Micron of violating 11 of YMTC's copyrights. Micron retaliated with a countersuit, accusing YMTC of violating its own copyrights. A recent court order in the case obligated Micron to hand over 73 pages of confidential documents regarding company technologies, a move Micron is trying to block, fearing sensitive information will be stolen.
However, the nature of the discovery means the documents will be printed, available for a limited number of eyes, and won't be seen by YMTC but by YMTC's counsel and experts. Micron's partners involved in the CTT astroturf campaign have reportedly made money from this anti-China campaign, according to the YMTC lawsuit. Other CTT claims have included unproven allegations that YMTC was involved in a Social Security scam in 2020 and that PC OEM Lenovo is also a Chinese spy asset (while U.S. OEM Dell was also found to have monetarily backed the CTT website).
The ongoing YMTC-Micron legal battle shows no sign of slowing down, with Micron having a history of litigious behavior. Although Micron has lost similar legal battles alleging IP theft from other Chinese tech firms, such as the five-year legal battle against Fujian Jinhua, it remains to be seen how Micron will fare now, engaged in both a lawsuit claiming patent theft and one alleging defamation and misinformation.
- The lawsuit filed by YMTC against Micron in 2022 not only accuses Micron of funding a smear campaign, but also implicates Dell in the same propaganda regarding YMTC's NAND memory chips.
- The legal dispute between YMTC and Micron is multifaceted, extending beyond patent theft to include allegations of defamation and misinformation, as Micron is accused of funding the China Tech Threat (CTT) website, which spreads unfounded claims about YMTC's technology.
