To: Elmer who wrote (40723 ) 11/20/1997 12:01:00 AM From: Paul Engel Read Replies (1) | Respond to of 186894
Elmer & Intel Investors - Intel QUICKLY Files a Countersuit against Intergraph Paul {================================}techweb.com Intel Countersues Intergraph (11/19/97; 11:30 a.m. EST) By Kelly Spang, Computer Reseller News Intel is countersuing Intergraph, challenging the validity of the patents at the heart of Intergraph's lawsuit. "We filed a countersuit to seek judgment to rule that Intergraph's patents are invalid," an Intel spokesperson said. Intel filed the countersuit in federal court the same day Intergraph filed its initial suit in court, claiming anticompetitive behavior and patent infringement on the part of Intel, in Santa Clara, Calif. Intel officials said the Intergraph suit is "without merit." In its suit, Intergraph contends Intel wanted to integrate Intergraph technology affecting a microprocessor's cache memory management without paying for the patents. The Huntsville, Ala.-based company had licensed Intel the patents previously for the Pentium, Pentium Pro, and Pentium II chips. In addition, Intergraph is also charging Intel with breach of contract and misappropriation of trade secrets. Intergraph executives said they didn't have a better alternative to legal action after negotiating with Intel. During the past year, Intel and Intergraph struggled to work out their differences, Intel officials said. At one point, Intel determined a solution wasn't near at hand and requested the return of Intel confidential documents from Intergraph. In the suit, Intergraph also charged Intel of withholding "vital technical information necessary for Intergraph's continued workstation development efforts." "Under the legal definition [of the non-disclosure agreement], there is no reason why we can't ask for [the documents] back. That doesn't have anything to do with anticompetitive behavior," said an Intel spokesperson. The documents were never returned, and their return aren't part of Intel's countersuit, Intel officials said. However, according to Intel officials, Intergraph was not only threatening Intel with patent infringement, but also threatening other OEMs with a similar charge. This caused "confusion in the market" and prompted OEMs to be more cautious in product rollout because of Intergraph's patent infringement claims on these system OEMs, according to Intel officials. It appears Intel is the only manufacturer being sued by Intergraph to date. While the two companies slug out their issues in court, Intergraph's supplies of Intel-based processors won't be affected, according to Intel officials.