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Technology Stocks : Intel Corporation (INTC)
INTC 50.59+4.9%Feb 6 9:30 AM EST

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To: Steve Porter who wrote (21768)5/13/1997 11:31:00 PM
From: Barry A. Watzman   of 186894
 
As I indicated, the Cyrix lawsuit, as I see it, has a better, more "natural" aroma, I think it's a legitimate suit with specific, reasonable business objectives and can play out in a straightforward manner, whichever way it goes.

The DEC suit is another matter, it has a REALLY bad smell.

My first reaction is that DEC probably believes that Intel has misappropriated confidential information given in 1991, but I don't think that this is really the case [personal opinion, no knowledge of the specifics]. Also, I did read the original WSJ article from last August at the time it was published, and it is being blown all out of proportion and taken completely out of context. I think DEC feels genuinely wronged, but, personally, I feel that they are just wrong not wronged. This is explained better in my earlier posts, which I suspect that you have read [and I've posted a LOT today, more today than everything earlier combined].

Now here's the part I'm wondering about: Is there an actual conspiracy here, was this explicitly planned by Palmer and Sanders or others [and maybe Cyrix, but I think not], or is the timing just coincidence. If it was an explicit conspiracy, was the FIST bug part of it also ? I am not paranoid, I almost NEVER question people's motives or intentions, or presume a conspiracy. But the DEC suit, in particular, just doesn't pass the smell test.

My honest opinion is that this is going to blow up in everyone's face, and Intel will come out of this even stronger. And I don't think that it will take years, I don't think it will get to full litigation, I am really suspicious that DEC really IS paranoid and has some suspicions but no real grounds other than their own perceptions and feelings of being wronged.

Intel and Cyrix will probably settle, because frankly Intel doesn't want the distraction of two full-scale infringement actions at this time. How good a settlement Cyrix can get will depend on the technical merits of it patents. Since these were just issued today, it will take Intel time to study them and formulate a position on defending/litigating/settling the Cyrix suit.
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