To: David Lawrence who wrote (17710 ) 11/18/1998 1:50:00 AM From: Scrapps Respond to of 22053
PC-TEL Files Countersuit Against Motorola (11/17/98, 6:38 p.m. ET) By Mark LaPedus, Electronic Buyers' News PC-TEL has gotten the Comdex '98 trade show in Las Vegas off with a bang by announcing it has filed a countersuit against Motorola over software-modem chip technology. In the suit, filed in the U.S. District Court in Wilmington, Delaware, PC-TEL, based in Fremont, Calif., denies the allegations in Motorola's original suit, in which Motorola says that its software-modem chip patents were being infringed on by PC-TEL. The original suit was filed about a month ago by Motorola against PC-TEL. Both companies sell an ASIC-like product that handles 56-kilobit-per-second V.90-compatible modem functions in software. PC-TEL's countersuit alleges that Motorola engaged inmisrepresentation, tortious interference with its relationship with existing and prospective customers, and violations of federal antitrust laws and state unfair-competition laws. The countersuit also alleges that Motorola convinced the International Telecommunications Union to adopt Motorola technology in standards for modems by committing to license all essential Motorola patents on fair, reasonable, and nondiscriminatory terms. Motorola is now violating its commitment by refusing to license allegedly essential Motorola patents on those terms, according to PC-TEL. "PC-TEL intends to retain our technical leadership in software modems," said CEO Peter Chen, in a statement. "Motorola has been attempting to undermine PC-TEL's superior products by making misrepresentations to standards-setting bodies and customers. We will fight Motorola's unlawful attempts to destroy competition in the marketplace and eliminate choice for customers." Motorola officials could not be reached for comment.