BEIJING, Feb. 20 -- Shenzhen-based flash-memory products maker Netac says it has filed a lawsuit against U.S. rival PNY Technologies for alleged infringements of one of its patents ¡ª in a rare instance of a Chinese company pursuing piracy charges overseas.

 ;   The lawsuit, seeking unspecified "significant financial damages," was filed Feb. 10 in the Eastern District Court in Texas, the Chinese company said in a statement seen on its Web site at the weekend.

    Netac asked the court to suspend sales of PNY's flash-memory storage devices.

    "We want to get fair competition in the United States, while Netac is expanding its presence in the overseas market," Deng Guoshun, president of Netac, said in the statement.

    Messages seeking comment from PNY, which is based in Parsippany, New Jersey, were not immediately returned.

    A New York lawyer for Netac, Stephen B. Judlowe, said the suit was filed at the federal courthouse in Texarkana, Texas, because it has handled similar actions in the past. Netac's suit said that court has jurisdiction because PNY products are sold in the district.

    Netac, a company founded by Chinese who returned to the country after studying and working overseas, is a leading maker of mobile storage and digital devices.

    The company says its founders invented the world's first mobile flash-memory drive using a USB interface in 1999, and obtained a China patent for their technology in 2002. The U.S. patent for the invention was granted in 2004, Netac says.

    Netac has successfully sued several Chinese companies for patent infringement. A case against Japanese electronics giant Sony Corp. has not yet been decided.

    Chinese companies rarely have brought charges against foreign competitors.

    The situation is changing, however, as Chinese companies become increasingly aware of the value of protecting their own inventions and technologies.

    "We have spent a huge amount of money and energy on research and development, so we hope other makers will honor our intellectual property rights," Deng said.

    About 10 overseas companies have licensed the technology from Netac, including Samsung Electronics of South Korea.

    Netac reported sales of more than 3 million flash-memory devices in 2005, though revenues were lower than US$100 million.

    Flash-memory devices are becoming more and more popular among computer users. The market value worldwide reached about US$4.25 billion in 2003 and is expected to grow rapidly in the coming years.

    Although Netac expressed optimism over its lawsuit, the hefty legal expenses in the United States may become a heavy financial burden for the company before it could win.

    (Source: Shenzhen Daily/Agencies)