back to article Flood-hit WD takes half-billion kidney punch from Seagate

Beset by Thai floods, WD has just been hit by an amazing arbitration court decision which means it has to pay Seagate $525m - if the decision survives appeal. The decision was made by a single arbitrator in a pending confidential arbitration case in Minnesota, which was instituted by Seagate against Western Digital and a …


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  1. Adze

    A good job HDD prices are already sky high then...

  2. HamsterNet


    I hope this gets thrown on out and WD Thailand operations get back up and running quickly (once they dry out). WD make the only HDD to own. I have never killed a single WD but I've killed very body else drives over the years..

    Don't know where I would be without my stacks of 1TB WD greens...

    (I don't work for them honest)

    1. Tim Bates

      You're in a minority

      Most people who deal computer issues see WD and figure the answer is bad sectors. I know at work, about 9 times out of 10, we're right about that.

      If you've had no problems with WD, then you're doing well. Maybe time to go buy a lottery ticket or 2 ;-)

      1. Willywigwam

        WD....serves you right

        I had a high end WD Raid drive fail after about 18 months loosing a pile of precious irreplaceable TV transport streams in the process. I have been sent a crap green drive which is no where near to the class of the drive that I RMA'd. Add to that being messed around and I'm not a happy chappy with WD ATM.

        Samsung, faster and cheaper but with crap warranties.

  3. Stevie


    So there is one major advantage that LEO manufacturing can offer - no weather to speak of.

    1. Anonymous Coward
      Anonymous Coward

      Weather Report

      >>So there is one major advantage that LEO manufacturing can

      >> offer - no weather to speak of.


      "Tomorrows weather for LEO: Expect moderate showers (meteor) in the AM, bright sunshine (solar flare) in the afternoon, and evening magnetic storms with possible fist sized hail (20K mph space junk)..."


  4. Turtle

    Appeal is not always easy.

    It would be interesting to note if the arbitrator's decision is subject to appeal, because in many cases it it not unless, sometimes, it is profoundly at variance with prevailing legal doctrine.

    One has to wonder why either Seagate or Western Digital ever agreed to send such a case, with such a huge sum involved, to arbitration in the first place.

    1. El Limerino

      It's just a negotiation

      Having worked as an expert on a trade secret case in the US, a couple of thoughts:

      1) Arbitration in cases like this is mandatory in some US states, with trial a last resort (seems like this case is under state vs. Federal law).

      2) Chris Mellor seems to be over-playing the shock and awe somewhat. This will not have been a surprise to anyone working the case, and it isn't over until both sides agree to a settlement or the trial (and any appeals) conclude. This is merely the latest stage of the negotiation that is a lawsuit

  5. Anonymous Coward
    Anonymous Coward

    Do I smell BS?

    The global market is worth about 2Billion USD how can this arbitration give 1/2 bill ?

    Its been going on since 07 so thats 4 years, and last year Seagate adds some more fuel to the pyre! Then it kicks off in May done by July, that sounds fast for lawyers!

    But 1/2 Billion, thats starting to sound like an M&A move

  6. Hardcastle the ancient


    I used to work for a major manufacturing company in the 1970s and we were VERY careful about intellectual property, particularly when engineers moved in or out of the company. Organisations have become very slapdash about copying each others good ideas in recent years.

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