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Technology Stocks : Compaq

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To: Night Writer who wrote (86973)11/18/2000 9:18:04 AM
From: rudedog  Read Replies (1) of 97611
 
NW - this looks like a typical "go after the money" lawsuit. CPQ did not produce any MPEG software - even the MPEG drivers provided with Presarios and laptops are third party, clearly labeled as such, with separate licensing terms for the package.

Some bright lawyer at one of those companies got an idea on how to make some money and picked the #1 company to go after. Since CPQ routinely does indemnification and "hold harmless" clauses on all licensing - as do all the big boys - the lawyers must assume they will run through whatever money a small company has and then CPQ's indemnification will not protect them. But I would expect that they also have a limited liability, since the SW is given away free and there are many versions in the common domain. Also, the standardization of MPEG compression is common domain.

This is certainly very strange legal action. If these people are successful in showing that they have some royalty rights on a particular method of compression, all they will do is drive the industry to develop a different compression method.
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