To: Eli Lauris who wrote (5757 ) 2/22/1999 8:03:00 PM From: miklosh Respond to of 14451
To All: Court Nixes Japan Computer Appealdailynews.yahoo.com By RICHARD CARELLI Associated Press Writer WASHINGTON (AP) - The Supreme Court today let stand findings that Japan's largest computer maker tried to sell four supercomputers to a U.S. research consortium at illegally low prices in 1996. The court, without comment, rejected an appeal in which NEC Corp. (Nasdaq:NIPNY - news) said it was denied a fair and impartial hearing before the Commerce Department found it in violation of antidumping laws by offering the supercomputers at prices far below their fair market value. The University Corporation for Atmospheric Research (UCAR), a consortium partially funded by the federal government, decided in 1995 that it would buy advanced supercomputers. It solicited bids from three companies, one of which offered to provide NEC products. NEC is Japan's largest PC maker and the world's second-largest computer chip maker behind Intel Corp. (Nasdaq:INTC - news) It owns more than 50 percent of California-based Packard Bell NEC, which controls about 10 percent of the world's computer market. The National Science Foundation, a federal agency, ordered UCAR to investigate whether the NEC bid involved illegal dumping. Later that year, the Commerce Department began its own investigation and determined that substantial dumping was involved. Each of the four supercomputers would cost about $13.2 million in the first year of procurement. In 1996, one of the two other companies that had bid for the UCAR contract filed an antidumping petition with the Commerce Department to complain about the NEC bid. The department responded by initiating an investigation. NEC sued in the federal Court of International Trade, contending that the Commerce Department's antidumping investigation could not be impartial because its officials already had concluded that NEC was guilty of violating federal laws. That court rejected the lawsuit, and its ruling was upheld last August by a federal appeals court specializing in commercial disputes. ''NEC can prevail on its claim of prejudgment only if it can establish that the decision-maker is not capable of judging a particular controversy fairly ... that the decision-maker's mind is irrevocably closed,'' the appeals court said. It ruled that NEC had failed to prove that. In the appeal acted on today, lawyers for NEC Corp. argued that the ''irrevocably closed'' mind standard is too difficult to prove for someone who contends they were denied an impartial hearing.