Barry and All, re: Intel/DEC contracts
DEC's apparently first comment (May 14, link and text below) on the matter did NOT specifically say that Intel is obligated to sell all Intel's microprocessor products to DEC through 1999. Rather, it simply referred to Intel supplying unspecified "chips" to DEC on a "long-term contract".
I don't have the text of the May 20 letter from DEC [mentioned elsewhere], so I don't know if it is any more specific.
The May 28 article (text below) on Intel, however, specifically quotes Intel as saying that "Intel's contract to provide Digital with microprocessors ends in September ..." [and also that "... there's a question about whether Intel would renew the contract."].
In the same article, Intel is quoted as stating that it has basic order agreements for PERIPHERAL PRODUCTS until 1999, and that these agreements probably won't be affected by the suit.
Taken together, this appears to be further support for my guess that DEC knows that Intel can contractually cut it off from microprocessors after September, 1997 - and that DEC has been purposely deceptively wording its statements to confuse its longer-term non-microprocessor contracts with its apparently shorter-term microprocessor contracts.
I think DEC is skating on the edge of a shareholder lawsuit, predicated upon these deceptive statements.
IMHO
Best regards,
Arno
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Intel Could End Chip Pact With Digital Equip After 3Q >INTC
Dow Jones News Service ~ May 28, 1997 ~ 10:39 am EST By Christopher Grimes
NEW YORK (Dow Jones)--Now that Intel Corp. (INTC) has returned Digital Equipment Corp.'s (DEC) invitation to court, it could also exercise some additional leverage by not extending chip contracts with Digital.
Intel spokesman Howard High told Dow Jones that Intel's contract to provide Digital with microprocessors ends in September, and that there's a question over whether Intel would renew the contract.
''Intel will honor all contractual obligations (to Digital) until the third quarter,'' High said. ''Beyond the third quarter, we certainly will have to look at the business opportunities at the time.''
High said Intel has basic order agreements with Digital for peripheral products until 1999, and that these agreements probably won't be affected by the suit.
Intel's suit, reported Wednesday morning, revolves around information that the two companies had routinely shared before Digital filed suit against Intel earlier this month.
The two companies regularly exchanged documents and prototype products as part of standard non-disclosure agreements. Intel claims it asked Digital to return these documents and prototype products after Digital filed the patent infringement suit, but Digital declined as recently as Tuesday afternoon, High said.
When it announced its suit May 13, Digital said it was willing to spend ''whatever it takes'' to pursue 10 patent infringements against Intel. Intel responded with an announcement that it would ''vigorously defend'' itself against Digital's charges.
(MORE) DOW JONES NEWS 05-28-97
10:39 AM
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Digital says no impact from suit against Intel
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By Josephine Ng
SINGAPORE, May 14 (Reuter) - Digital Equipment Corp DEC.N
said on Wednesday it did not see its business affected by its
suit against Intel Corp INTC.O for patent infringement.
"There's no impact to us continuing to sell our products, no
impact on our worldwide operations," Darke M. Sani, managing
director of Digital Singapore told Reuters.
He said this was because Intel supplies chips to Digital on
a long-term contract.
But he declined to say how the suit could affect
relationship between the two companies on the corporate level.
MORE
Rtr 00:57 05-14-97
Copyright 1997, Reuters News Service
pcfn.com
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