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Technology Stocks : Intel Corporation (INTC) -- Ignore unavailable to you. Want to Upgrade?


To: wanna_bmw who wrote (143144)9/9/2001 12:07:09 PM
From: Dan3  Read Replies (2) | Respond to of 186894
 
Re: which patents Intel is in violation of breaking?

Which specific patents? I don't know. I've posted some links you could start with.

The bottom line is, there are patents that Intel is having some trouble with. Over all, this isn't a huge issue for Intel, since their gross margins are high. This is very different from the position the memory makers found themselves facing with Rambus demanding 25%+ of the their (much lower) margins.

But, particularly in these times of uncertainty, heightened competition, and very poor industry sales, a negative settlement for Intel could certainly move the stock.

The problem for Intel is that VIA now owns the patents at issue from the following settlement:

INTEL, S3 SETTLE PATENT DISPUTE
Intel Corp. and graphics chipmaker S3 have agreed to end their dispute over microprocessor patents, and instead will cross-license the patents for the next 10 years. The settlement frees Intel to proceed with development of its next-generation Merced microprocessor without fear of infringing on S3's patents, and means S3 can go forward with plans to integrate graphics technology into a chip set that routes data through a computer. "We have an agreement that leaves the door open for future partnerships," says S3's CEO. "This does show that Intel is making its technology available." The agreement no doubt will be cited by Intel lawyers still wrangling over Federal Trade Commission antitrust allegations that the company's control over key patents has stymied innovation, particularly among chip set makers. (Wall Street Journal 18 Dec 98)

ee.surrey.ac.uk

From this article, it looks like Intel is probably OK if they just dump Itanium/IA-64. Of course, there is also this ongoing feud:
al.com

Rather than in a courtroom, the unfolding case of Intergraph Corp. vs. Intel Corp. might be better suited to a green baize-covered poker table.

The game has two experienced players, one slightly battered from some lean days, the other flush with cash and a string of victories.

The table is covered with money as the two sides up the stakes, neither blinking.

After an uncertain draw, Intergraph is now holding what some think could be a winning hand. Intel has had to put its most valuable chips on the table and Intergraph has warmed to the game.

Observers are newly optimistic about the Huntsville company's chances in its 4-year-old lawsuit against Intel, which seeks royalties from Intel's hugely successful Pentium line of processor chips. Intergraph contends the Pentium line was developed using technology from Intergraph's patented Clipper chip, and is seeking a share of an estimated $100 billion in Pentium sales, between 1 and 3 percent.