August 30, 2000
Intel Files Patent-Infringement Suit
Against Chip Maker Broadcom
A WSJ.COM News Roundup
Intel Corp. filed a patent-infringement lawsuit against Broadcom Corp. charging that "nearly every aspect" of the communications-chip maker's business violates one or more of Intel's patents.
Intel, Santa Clara, Calif., alleges in the lawsuit that Broadcom "carefully crafted a plan" to build its business using Intel's technology.
Bill Blanning, a spokesman for Broadcom, said that "contrary to public statements by Intel, Intel made no effort to alert us to this action or seek to resolve any issue they might have."
Mr. Blanning said Broadcom is confident in the "soundness" of its business practices and will defend itself against the suit "vigorously."
In the suit, Intel said Broadcom focused on acquiring Intel's technology by "inducing Intel employees to disclose Intel trade secrets at Broadcom." Intel is seeking an injunction preventing further infringement and unspecified damages and court costs.
In March, Intel received a temporary restraining order against Broadcom for "disclosing, using or acquiring trade secrets," Intel said in the filing.
The alleged patent infringement covers five patents including one related to smart networking products, three relating to motion picture decoding used in Broadcom's cable products, and one for packages which Broadcom uses to sell its chips, said Intel in its complaint.
The suit comes amid an acquisition spree by Broadcom. In early August, Broadcom agreed to acquire closely held NewPort Communications Inc. for about $1.32 billion in stock, Broadcom's third major move in as many months to supply chips for big telecommunications networks. |
