To: Dave who wrote (66988 ) 10/22/1998 11:58:00 AM From: Tony Viola Respond to of 186894
Dave, we were talking about companies getting sued (Intel by S3) and throwing around expressions like:No-one sues companies that don't have two nickels to rub together. andSteve Dallas, the attorney on the comic strip Bloom County, summed it up, "Never sue poor people" Well, looky here, now Apple is being sued, and they just got their stuff back together (sort of). Another case of show some success and you're more likely to get sued.mercurycenter.com Posted at 9:49 p.m. PDT Wednesday, October 21, 1998 Harris sues Apple for dropping the Newton BY HOWARD MINTZ Mercury News Staff Writer Harris Corp. has sued Apple Computer Inc. in Santa Clara County Superior Court, complaining that it was left in the lurch by Apple's decision earlier this year to officially abandon its Newton line of hand-held computers. In a 10-page complaint filed Tuesday, the Florida-based maker of communications and technology products maintains that Apple broke a licensing agreement when it canceled the Newton technology in February. The decision cost Harris millions of dollars in contracts lined up to develop spinoffs of the device, the company says. According to the lawsuit, Harris had arranged more than $10 million in business on a deal with Ameritech Corp., a Chicago-based telephone service and communications giant, to sell Harris MessagePad 2000s, which were based on Apple's Newton technology. That deal, Harris contends in its suit, disintegrated the day Apple publicly announced it was abandoning the Newton. The suit seeks a minimum of $17 million damages, including recovery for Harris' costs in developing a product line based on its licensing agreement with Apple. That agreement, signed in 1995, was effective through June of next year, according to the suit. ''Apple deprived Harris of the basic benefits Harris reasonably expected to receive from its dealings with Apple, and which Apple understood were being conferred on Harris,'' the suit alleges. Apple officials declined Wednesday to discuss the suit. Both companies are somewhat sizable players, Apple with $5.9 billion in sales in its most recent fiscal year, and Harris with revenues of $3.9 billion. After much speculation in 1997 over the future of the Newton, Apple shut down the product in February as part of overall attempts to improve the company's flagging financial fortunes. The final version of the Newton was the MessagePad 2000, a hand-held, notepad-size computer that accepted handwritten input with a penlike stylus. Harris originally was licensed to produce a spinoff -- a more rugged version of the Newton MessagePad 120, which was a predecessor to the MessagePad 2000, the lawsuit says. When Apple upgraded to the MessagePad 2000 technology in 1996, it encouraged Harris to develop its own compatible version and even provided engineering assistance, according to the suit. But while Harris was developing its MessagePad 2000 product and striking deals with such companies as Ameritech, Apple was backing away from the Newton. The suit blames the shift within Apple on the departure of former Chief Executive Officer John Sculley, who backed the Newton, and the later arrival of Steve Jobs, who had been critical of the device. The suit says Apple broke a promise to continue supporting and marketing the Newton technology through the entire contract it had with Harris.