Western Digital wins injunction over Toshiba restoring access to intellectual property databases and chip samples for WD staff

Western Digital has won the first first round in its court battle with NAND flash joint-venture partner Toshiba, with a temporary court order restoring access for its employees to databases and chip samples that Toshiba had stopped.

SanDisk, which was acquired by Western Digital in a $19bn deal last year, has long shared a chip fabrication plant in Japan with Toshiba. The two companies therefore have a large amount of shared intellectual property as a result.

Western Digital has been fighting hard to be the preferred bidder in the auction for Toshiba's chip business, after crippling losses in the nuclear sector forced the Japanese electronics and engineering company to restructure.

However, Toshiba settled on a consortium led by a Japanese state-led group and Western Digital is not happy, especially after it is alleged that Toshiba threatened to lock Western Digital out. The deal has since stalled, but rather than look to Western Digital, Toshiba has returned to a previous deal with rival Foxconn, which was previously the highest bidder, and to most, the most likely victor.

Western Digital sued Toshiba in San Francisco, California's County Superior Court arguing that under the terms of the joint venture agreement it must give consent for any sale, which it has repeatedly refused to give unless that buyer is Western Digital.

Two requests were made. One to stop the sale and another restraining order forcing Toshiba to give its opposite numbers at Western Digital access to shared information.

The access order was granted ahead of a further hearing on 28 July.

"We welcome the decision of the court, which we believe validates our position," Western Digital said in a statement.

Toshiba, which intends to contest the ruling said: "This is a proceeding with many rounds and many rulings, and while we are disappointed with the judge's ruling, it doesn't forecast the outcome of this proceeding or those to come," Toshiba said in the statement."

A Friday hearing will determine whether the injunction will stand, with Toshiba arguing that it gives WD too much power.

Toshiba is already suing WD for "meddling" in the sale.