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Legato Lobs Lawsuit at NSI: Page 3 of 3

And while there’s more software litigation going on, a growing number of cases now seem to be stretching almost, or all the way, to a trial. "If both parties believe they have a valid position, they’re looking at an average two to three years before the trial date," Chaikovsky says.

One example of how intellectual property litigation can be drawn out is the McData Corp. (Nasdaq: MCDTA) suit against Brocade Communications Systems Inc. (Nasdaq: BRCD) in a dispute over a 1999 OEM agreement that covered certain patents for both firms. After a U.S. Court for the District of Colorado denied McData’s motion for a preliminary injunction against Brocade last December, McData requested arbitration to resolve the litigation. A schedule for that arbitration has yet to even be set, according to both companies (see McData Seeks Arbitration ).

The Legato-NSI case has initially been assigned to Magistrate Judge Elizabeth Laporte, but could be reassigned to a district judge if either party requests a change.

— Eugénie Larson, Reporter, Byte and Switch