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Non-Tech : Symbol Technologies--A Supply Chain Play

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To: lkj who started this subject6/1/2001 12:40:32 AM
From: lkj   of 38
 
Agere Sues Proxim for Patent Infringement
Thursday May 31, 7:20 pm Eastern Time

TheStandard.com
By James Evans - IDG

Agere Systems, the former microelectronics unit of Lucent
Technologies, said Thursday that it filed suit against Proxim, alleging
that the wireless networking company is infringing on three of Agere's
wireless local area network (WLAN) patents.

The patents are related to multirate wireless data
communications systems, antenna apparatus and tungsten
metallization, all used in Proxim's WLAN products, Agere
said in a statement. Agere is requesting monetary damages
and a court injunction to prohibit Proxim from using the
patented technology, according to the Allentown, Pa.-based
company.

Agere filed the suit after negotiations during the past two
months with Proxim failed to bring about an agreement, Agere
spokeswoman Vibha Agrawal said.

"Proxim would not agree to provide us compensation for our
patents," Agrawal said. "That's really all we are seeking here,
is the value for our patents."

Proxim spokeswoman Debbie Abbott would not comment on the specifics of the Agere case. However,
she said Proxim believes it has a "very strong case" against vendors it sees infringing on its patents.

In March, Proxim took actions to protect its own WLAN patented technology. The patents provide core
transmitter and receiver properties for range, data rate and interference minimization for direct sequence
WLAN technology in the 2.4GHz range, according to the company.

Proxim first filed suit against six networking companies that sell WLAN technology, alleging patent
infringement. Sunnyvale, Calif.-based Proxim sued 3Com, Cisco Systems, Intersil, SMC Networks,
Symbol Technologies and Wayport. Each of the companies sells direct-sequence WLAN products and
services based on the IEEE (Institute of Electrical and Electronics Engineers) 802.11b wireless
communication standard.

After filing suit, Proxim asked the International Trade Commission (ITC), based in Washington, D.C., to
stop the importation of products by eight companies to the U.S. that allegedly infringe on its patented
wireless networking technology. They are Acer, Addtron Technology, Ambicom, Compex, D-Link
Systems, Enterasys Networks, Linksys Group and Melco.

Symbol then in early May denied that its technology infringed on Proxim's patents and filed a countersuit
against Proxim, alleging that its WLAN patented technology was infringed upon by Proxim's products.
More recently, Proxim ended its lawsuit against Compex and its parent company Powermatic Data
Systems in May after a royalty-paying license agreement was reached, giving Compex the right to use
Proxim's patents for its 802.11b wireless network products.

Agere sells components or complete WLAN systems for re-branding to six of the 13 companies still being
sued by Proxim, Agrawal said. She would not identify the companies by name. Agere has intervened in
the lawsuits on the behalf of its customers and is defending them, she said. Agere believes Proxim's claims
before the ITC are without merit.

The Agere lawsuit against Proxim was filed in the U.S. District Court in Delaware.
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