Anybody think this will hurt Adobe tomorrow...in front of good earnings...It should another company trying to horn in on a frivilous lawsuit....
WILMINGTON, Del, Sept 18 (Reuter) - A federal jury of nine began deliberating late Thursday on whether Adobe System Inc's ADBE.O Photoshop computer software infringes patents for video graphics owned by the Quantel Ltd unit of Carlton Communications Inc CCM.L. Quantel has asked for maximum damages of $138.1 million, including $20.6 million in interest. The damages are based on Quantel's request for a royalty rate of 17.8 percent of Adobe's worldwide Photoshop sales since 1993. If the jury finds there was infringement, it can also triple any damages it awards if the infringement is thought to have been intentional. Adobe attorney James Pooley told Reuters after closing arguments before Judge Roderick McKelvie of the U.S. District Court in Delaware that, "These guys were not the inventors. It was all done by Dr Alvey Ray Smith and other American graphics pioneers long before (Quantel) arrived on the scene." Adobe has claimed that Quantel's patents are not valid because the technology for an electronic stylus used to make and retouch computer images was "obvious" and the process was general knowledge in the industry. Adobe also alleged that Quantel obtained the patents by misleading examiners in the U.S. Patent and Trademark office by failing to inform them of prior inventions and publications. But Quantel attorney Richard Mescon told Reuters after the trial, "We believe the patents we're asserting were infringed are valid and were obtained in the appropriate way." Pooley asked the jury for a royalty rate no greater than one percent should it find that Photoshop products do infringe Quantel's patent claims. He also asked that, if damages are awarded, they be based on Adobe's U.S. sales of $1.4 billion, or worldwide sales of $3.3 billion calculated from January 1996. If no decision is reached Thursday, the jury will resume deliberations at 0900EDT Friday. Quantel, of Newbury, England, sells tapeless visual effects systems and graphics equipment. Adobe, of San Jose, California and which develops computer software for electronic documents, said its third quarter earnings will exceed analyst projections REUTER Rtr 19:37 09-18-97 |