Judge Sets April 2008 Trial Date for Silicon Image Trade Secret and Copyright Infringement Case Against Analogix

SUNNYVALE, Calif., Jan. 8, 2008 – Silicon Image, Inc., a leader in semiconductors for the secure storage, distribution and presentation of high-definition content, today announced that the trial in its trade secret and copyright infringement case against Analogix Semiconductor, Inc. has been scheduled for April 2008 in the United States District Court for the Northern District of California.

In his ruling on Silicon Image’s motion for a preliminary injunction, Judge Joseph C. Spero concluded that “Silicon Image has demonstrated a strong probability of success on the question of misappropriation” and thus ordered an expedited trial. The trial was originally set for September 2008.
 
Though Judge Spero declined to enjoin Analogix from selling the semiconductors in question pending the trial, he accelerated the trial date “in light of the evident copying, the serious questions raised by Silicon Image on the merits, and the possibility of irreparable harm.” In his order declining to issue an injunction before trial, Judge Spero noted issues for trial relating to the adequacy of Silicon Image’s protection of its trade secrets.

“We believe the evidence clearly demonstrates that Analogix misappropriated our trade secrets, and we are confident we will prevail at trial,” said Edward Lopez, Silicon Image’s chief legal officer.

About the Case
In January 2007, Silicon Image filed a complaint charging Analogix with copyright infringement, misappropriation of trade secrets, and unlawful, unfair and fraudulent business practices. In the lawsuit, Silicon Image alleges that Analogix—without authorization and in violation of Silicon Image’s intellectual property rights—copied and used Silicon Image’s proprietary register maps and semiconductor configuration software. The complaint alleges that Analogix gained unlawful access to Silicon Image’s confidential and proprietary register maps—access that Silicon Image never provided to Analogix. In addition to seeking significant monetary damages in an amount to be determined at trial, Silicon Image requested an injunction barring Analogix from its ongoing infringement of Silicon Image’s intellectual property rights.

Semiconductor layout designs involve strategic placement of various electronic components, including small memory cells called registers, on interconnected layers of a chip. Silicon Image’s layout designs, including its register maps that identify locations of registers within its chip designs, are its guarded trade secrets. Documentation describing its designs is not publicly disclosed and is provided to Silicon Image’s customers or business partners only under strict non-disclosure agreements. Silicon Image alleges that Analogix copied and used Silicon Image’s register maps by gaining unauthorized access to Silicon Image’s proprietary and confidential information.

Along with its chips, Silicon Image has developed, at substantial expense, its semiconductor configuration software. Silicon Image provides the software to its customers who use it to configure Silicon Image chips incorporated in their consumer products. Under its software license agreements, Silicon Image’s semiconductor configuration software can only be used with Silicon Image chips and no other products. Such a restriction is common in the industry. The complaint charges Analogix with illegally copying and modifying Silicon Image’s semiconductor configuration software and knowingly encouraging its existing and prospective customers to modify and use Silicon Image’s semiconductor configuration software with Analogix’s chips, a use that is beyond the scope, and in violation of, the rights granted under Silicon Image’s software license agreements.

About Silicon Image, Inc.
Silicon Image, Inc. is a global leader in driving the architecture and semiconductor implementation for the secure storage, distribution and presentation of high-definition content in the consumer electronics, personal computing, and mobile device markets. With a rich history of technology innovation that includes creating industry standards such as SATA, DVI and HDMI, Silicon Image partners with the world’s leading entertainment creators and electronics manufacturers to deliver digital HD content to consumers anytime, anywhere, on any device. Silicon Image is also a leading provider of semiconductor intellectual property solutions for high-definition multimedia and data storage applications. Additionally, Simplay Labs, LLC, a wholly-owned subsidiary of Silicon Image, offers robust testing tools, technologies, support services, consulting and product certification to electronics manufacturers to maximize performance, interoperability and ensure the highest-quality HD experience to consumers. With engineering, sales and customer support facilities located throughout North America, Asia and Europe, Silicon Image (NASDAQ: SIMG) is globally headquartered in Sunnyvale, California. For more information, please visit www.SiliconImage.com.

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