Yangtze Memory Technologies, Inc. v. Micron Technology, Inc.

District Court, District of Columbia·Decided August 13, 2026·No. Civil Action No. 2025-1795·Published

Opinion

UNITED STATES DISTRICT COURT FOR THE DISTRICT OF COLUMBIA

YANGTZE MEMORY TECHNOLOGIES, INC., et al.,

Plaintiffs,

v. Civil Action No. 1:25-cv-01795 (CJN)

MICRON TECHNOLOGY, INC., et al., Defendants.

MEMORANDUM OPINION

Yangtze Memory Technologies, Inc., and Yangtze Memory Technologies Co., Ltd., (collectively, YMTC) claim that Micron Technology, Inc., and DCI Group AZ, LLC, violated the Lanham Act, 15 U.S.C. § 1125(a), by running an astroturfing campaign that discouraged customers from purchasing memory chips from YMTC due to its connections to the Chinese government. ECF 1. Micron and DCI move to dismiss. ECF 21; ECF 24. Because the publications that YMTC challenges do not constitute commercial speech—and therefore cannot be the basis for Lanham Act liability—the Court grants those motions.

I. Background

Headquartered in Wuhan, China, Yangtze Memory Technologies Co., Ltd., “is a leading developer and manufacturer of advanced 3D NAND flash memory and related storage technologies.”1 ECF 1 ¶ 21. Its U.S.-based subsidiary, Yangtze Memory Technologies, Inc., manages YMTC’s American presence and business development. Id. ¶ 22. “YMTC has

1 “[O]n a motion to dismiss,” the Court of course “accept[s] as true the well-pleaded factual allegations of the complaint.” Davis v. Billington, 681 F.3d 377, 379 (D.C. Cir. 2012).

successfully designed and manufactured 3D NAND flash memory chips that set new benchmarks for bit density, input/output performance, and storage capacity.” Id. ¶ 31. Enticed by these technological advancements and lower prices, Apple selected YMTC to be its supplier of advanced memory chips in 2022.2 Id. ¶¶ 19, 34.

Micron competes against YMTC in the market for memory chips. Id. ¶ 2. “[T]hreatened by YMTC’s ascension,” Micron worked with DCI, a public affairs firm, “to erect a sophisticated . . . ‘astroturfing’ campaign . . . to damage YMTC’s reputation and business for their own profit.” Id. ¶¶ 2, 7, 23. It funded a website called China Tech Threat that “purport[ed] to be focused on policy” but was actually a front “to disseminate favorable messages about Micron’s products and disparaging messages about YMTC’s competing products.” Id. ¶¶ 8–10.

In September 2020, China Tech Threat began its “disinformation campaign.” Id. ¶ 12. A January 2021 blog post titled “As YMTC Booms, China Aims to Dominate Flash Memory Industry” asserted that YMTC was associated with “criminal activity, including a Social Security spoofing scam, identity theft and cyber extortion.” Id. ¶ 12 & n.4 (quoting ECF 1-3 at 2). And a June 2022 report titled “Silicon Sellout: How Apple’s Partnership with Chinese Military Chip Maker YMTC Threatens American National Security” implored “Apple to voluntarily end its partnership with YMTC” and “source its chips from existing suppliers like Micron.” Id. ¶ 13 (alterations adopted) (quoting ECF 1-4 at 4).

YMTC alleges that China Tech Threat’s “false and misleading statements caused YMTC to lose significant business opportunities and derailed ongoing negotiations with major customers

2 The complaint refers to the large customer in question generically as “OEM Customer #1.” See, e.g., ECF 1 ¶ 34. “OEM Customer #1” appears to be Apple given that YMTC challenges a publication that criticizes the deal between YMTC and Apple, see id. ¶ 13, and YMTC does not deny Micron’s assertion that “OEM Customer #1 refers to Apple,” ECF 24-1 at 28.

and technical partners.” Id. ¶ 60. Most notably, Apple suspended its plans to purchase chips from YMTC in October 2022, resulting in “hundreds of millions of dollars in lost revenue.” Id. ¶ 61. The astroturfing campaign also “inflicted lasting damage on YMTC’s reputation and commercial standing across the technology sector.” Id. ¶ 62.

In June 2025, YMTC filed this suit. ECF 1. Citing five statements from the China Tech Threat publications, YMTC raises claims of direct and contributory liability under the Lanham Act, which “prohibits deceptive trade practices such as false advertising and trademark infringement.” Farah v. Esquire Mag., 736 F.3d 528, 540 (D.C. Cir. 2013). Micron and DCI move to dismiss. ECF 21; ECF 24. Although they make other arguments, both contend that dismissal is required because the challenged publications are not commercial speech and are therefore not actionable under the Lanham Act.

II. Article III Standing The Court begins, as it must, with jurisdiction. “Because Article III limits the constitutional role of the federal judiciary to resolving cases and controversies, a showing of standing is an essential and unchanging predicate to any exercise of [the Court’s] jurisdiction.” Nat. Res. Def. Council v. EPA, 755 F.3d 1010, 1016 (D.C. Cir. 2014) (quoting Fla. Audubon Soc’y v. Bentsen, 94 F.3d 658, 663 (D.C. Cir. 1996) (en banc)). Article III standing requires that a plaintiff “(1) suffered an injury in fact, (2) that is fairly traceable to the challenged conduct of the defendant, and (3) that is likely to be redressed by a favorable judicial decision.” Spokeo, Inc. v. Robins, 578 U.S. 330, 338 (2016). “To establish injury in fact, a plaintiff must show that he or she suffered ‘an invasion of a legally protected interest’ that is ‘concrete and particularized’ and ‘actual or imminent, not conjectural or hypothetical.’” Id. at 339 (quoting Lujan v. Defs. of Wildlife, 504 U.S. 555, 560 (1992)). Causation requires that the injury is “fairly traceable to the challenged

action of the defendant, and not the result of the independent action of some third party not before the court.” Lujan, 504 U.S. at 560 (alterations adopted) (quoting Simon v. E. Ky. Welfare Rts. Org., 426 U.S. 26, 41–42 (1976)). And “it must be ‘likely,’ as opposed to merely ‘speculative,’ that the injury will be ‘redressed by a favorable decision.’” Id. at 561 (quoting Simon, 426 U.S. at 38, 43).

DCI (but not Micron) contends that YMTC has failed to adequately allege that it has Article III standing.3 ECF 21 at 7–11. As for injury in fact, YMTC alleges that “Defendants’ false and misleading statements caused [it] to lose significant business opportunities and derailed ongoing negotiations with major customers and technical partners.” ECF 1 ¶ 60. It details a specific example of Micron’s and DCI’s alleged actions causing it to lose a major customer: Apple. Id. ¶ 61. And YMTC explains that it “suffered substantial financial harm, including lost sales, forfeited market opportunities, and increased mitigation costs” and “lasting damage on [its] reputation and commercial standing across the technology sector.” Id. ¶ 62. Given that “[e]conomic harm to a business clearly constitutes an injury-in-fact,” Carpenters Indus. Council v. Zinke, 854 F.3d 1, 5 (D.C. Cir. 2017); see also Lexmark Int’l, Inc. v. Static Control Components, Inc., 572 U.S. 118, 125 (2014) (agreeing that “allegations of lost sales and damage to its business reputation give [a plaintiff] standing under Article III”), these allegations more than suffice. DCI’s

3 Micron does not argue that YMTC lacks Article III standing. See ECF 24-1. Nonetheless, “it is well established that the court has an independent obligation to assure that standing exists, regardless of whether it is challenged by any of the parties.” Summers v. Earth Island Inst., 555 U.S. 488, 499 (2009). For the same reasons that YMTC has adequately pleaded that it has standing to pursue its claims against DCI, it also has adequately pleaded that it has standing to sue Micron. Indeed, YMTC alleges that Micron was the mastermind behind the scheme to injure it. See ECF 1 ¶ 24 (asserting that Micron “collaborated with DCI’s co-located operations to plan, fund, direct, and oversee the challenged campaign, using DCI as its agent and instrumentality to execute a coordinated effort to damage YMTC’s competitive standing while shielding Micron’s own direct involvement”).

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