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Technology Stocks : IDTI - an IC Play on Growth Markets
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To: Marvin M. Lim who wrote (10605)11/18/1999 12:18:00 PM
From: Marvin M. Lim  Read Replies (1) of 11555
 
Clear Logic defends its technology against Altera's suit

seminews.com

SAN JOSE - Clear Logic Inc. here responded today to a lawsuit filed
by Altera Corp., saying it confirms the commercial success of Clear
Logic's products. The company said it will "vigorously contest these
invalid allegations and expects to be vindicated."

Clear Logic, a fabless supplier of ASIC replacements for programmable
logic devices (PLDs) and field-programmable gate arrays (FPGAs), said
the suit's allegations were "totally unfounded" and "completely
frivolous." The lawsuit alleges that Clear Logic has violated laws
relating to Altera's intellectual property and Altera's relationships
with its customers (see Nov. 17 story).

"By this lawsuit, Altera has acknowledged the rapidly growing
popularity of the Clear Logic solution with Altera's major
customers," said Al Huggins, Clear Logic's president and CEO. "In
fact, the lawsuit itself provides confirmation of the ease-of-use and
compatibility of Clear Logic products."

In the filing, Altera states that "Altera has suffered and/or will
continue to suffer reduced sales and/or lost profits" and that
"Altera has been damaged and has suffered and will continue to suffer
irreparable loss and injury," as a result of Clear Logic's market
entry. Clear Logic acknowledges that customers have rapidly adopted
its products since they were first made available only last year.

Altera's documents acknowledge Clear Logic's claims that using Clear
Logic's devices is "simply a matter of removing the Altera device
from the printed circuit board and replacing it with one from Clear
Logic." Altera also cites Clear Logic's ability to provide second
source Altera replacement parts to customers within two weeks.

Clear Logic participates in the FPGA-to-ASIC conversion market as a
lawful, legitimate ASIC supplier, Huggins said.

"This suit demonstrates that Altera is afraid of competition and
recognizes Clear Logic to be a serious threat," he added. "Clear
Logic's proprietary technology offers pin-compatible devices to
customers that second source the Altera products at a much lower
price. Providing second source products at a lower cost using
advanced technology is a classic path to success that benefits both
the innovators and customers. Of course, entrenched competitors with
huge investments in old technologies look to the courts to protect
them from competition."
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