M-Systems, an Israeli company, were granted a US patent on November 14, 2000, titled "Architecture for a [USB]-based Flash Disk", and crediting the invention to Amir Ban, Dov Moran and Oron Ogdan, all M-Systems employees at the time. The patent application was filed by M-Systems in April 1999.[6][1][7] Later in 1999, IBM filed an invention disclosure by one of its employees.[1] Flash drives were sold initially by Trek 2000 International, a company in Singapore, which began selling in early 2000. IBM became the first to sell USB flash drives in the United States in 2000.[1] The initial storage capacity of a flash drive was 8 MB.[7] Another version of the flash drive, described as a pen drive, was also developed. Pua Khein-Seng from Malaysia has been credited with this invention.[8] Patent disputes have arisen over the years, with competing companies including Singaporean company Trek Technology and Chinese company Netac Technology, attempting to enforce their patents.[9] Trek won a suit in Singapore,[10][11] but has lost battles in other countries.[12] Netac Technology has brought lawsuits against PNY Technologies,[13] Lenovo,[14] aigo,[15] Sony,[16][17][18] and Taiwan's Acer and Tai Guen Enterprise Co.[18]

The applications of current data tape cartridges hardly overlap those of flash drives: on tape, cost per gigabyte is very low for large volumes, but the individual drives and media are expensive. Media have a very high capacity and very fast transfer speeds, but store data sequentially and are very slow for random access of data. While disk-based backup is now the primary medium of choice for most companies, tape backup is still popular for taking data off-site for worst-case scenarios and for very large volumes (more than a few hundreds of TB). See LTO tapes.

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