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Technology Stocks : IS INTC A GROWTH STOCK?
INTC 41.26-0.6%3:57 PM EDT

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To: AK2004 who wrote (232)7/3/1997 7:41:00 PM
From: Glenn D. Rudolph   of 243
 
Intel denies Digital patent claims, seeks dismissal Reuters Story - July 03, 1997 18:15 %US %DPR %ELC INTC DEC AMD V%REUTER P%RTR (Spelling of name Jeffry is correct) By Samuel Perry PALO ALTO, Calif., July 3 (Reuter) - Intel Corp. said Thursday it has filed a response in U.S. District Court denying Digital Equipment Corp.'s allegations of patent infringement and seeking dismissal of Digital's lawsuit. "Intel has not infringed and is not infringing any claim of the DEC patents," the computer chip giant said in documents filed late Wednesday in U.S. District Court in Worcester, Mass., where computer maker Digital filed its patent infringement lawsuit against Intel. Intel also argued that Digital's patents are themselves "invalid, void and unenforceable" and asked the court in a counterclaim to award Intel compensation for its costs and lawyers' fees. Digital, based in Maynard, Mass., accused Intel of infringing on 10 Digital patents with its popular Pentium family of microprocessors. The lawsuit was filed May 12. Intel, based in Santa Clara, Calif., is the world's largest semiconductor maker and its processors are used in more than 85 percent of personal computers. The lawsuit pits two industry heavyweights, each with an enormous arsenal of well over 1,000 microprocessor design patents. Digital spokesman Jeffry Gibson said the company was not surprised by the nature of Intel's response, which was required within a period specified by the court, and said Digital will press on with its lawsuit. "We anticipated this type of response," he said. "Our position is that Intel has infringed our patents and we are confident in our case," he said. "We believe that our patents are valid and enforceable and it's our intention to have the litigation move as quickly as possible." But industry executives expect Digital to face increased commercial pressure as it moves ahead with the case, since, like most of the industry, it has relied on Intel to supply processors for its personal computer products. Intel has said separately it does not have an obligation to supply Digital with Pentium chips beyond the third quarter, when Digital's purchase order runs out. Digital executives have insisted Intel has a "long-standing" supply agreement with Intel that would prevent it from cutting off the supplies. Nonetheless, Advanced Micro Devices Inc. said last month Digital would ship a line of Venturis FX-2 desktop computers using AMD's K6 MMX chip. The PCs have previously been powered by Intel's Pentium and Pentium Pro chips. Executives at all levels of Digital and Intel have held talks since the lawsuits were filed, but a lawyer familiar with the negotiations said last week Digital was not under pressure to reach a settlement in its patent infringement lawsuit.
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