F.T.C. sues Intel, saying it violated antitrust laws; control of data is issue; chip giant says it has right to shun computer makers in disputes on patents

Article Abstract:

The FTC sued Intel for allegedly threatening and injuring three computer makers as a means to force the surrender of rights to patented technologies. The 3-1 commission vote accuses Intel of withholding chip information from DEC, Intergraph and Compaq. All three manufacturers consider the information essential in developing proprietary products that are compatible with Intel's microprocessors. Intel, meanwhile, exchanged the information with rivals of the three companies that were not disputing patents with Intel. Adding Compaq to the antitrust suit changes the dimension of the FTC's general antitrust suit strategy, which had been expected for several days. Compaq, the world's largest PC manufacturer, sued Packard Bell for allegedly using patented Compaq technologies in its computers, according to the Government suit. Packard Bell actually was using Intel-supplied components, the Government said. Intel executives verified the facts of the Government's case but defended the actions against the three companies as a legal right.

Litigation, Lawsuit/litigation

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Intel and Digital settle lawsuit and make deal

Article Abstract:

Intel has agreed to acquire DEC's semiconductor manufacturing operations for $700 million and pay royalties to DEC to settle a DEC-filed patent infringement suit. The agreement concludes a legal clash that began in May 1997. Terms would allow DEC to keep its proprietary Alpha microprocessor, which Intel agreed to produce. DEC also would develop Intel-based computer chips, and these chips will compete directly with Alpha. The companies also agreed to an undisclosed 10-year cross-licensing accord that would allow Intel and DEC to use each others' design patents. Intel would pay more than $1.5 billion until 2007, according to an executive at one of the companies. Most analysts believe the accord would benefit both companies. Intel, with more than $5 billion in 1997 earnings, avoids potentially expensive litigation and wins the opportunity to woo Digital's large customer base. DEC drops its unprofitable semiconductor operations while keeping a guaranteed source of Alpha chips.

Product development, Company legal issue, Mergers, acquisitions and divestments, Company acquisition/merger, Cooperative agreement for product development, Alliances and partnerships, Digital Equipment Corp., DEC

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Intel and Microsoft face differing antitrust paths; administrative case awaits chip maker

Article Abstract:

The FTC apparently is on the verge of filing an antitrust lawsuit against Intel, but the administrative and legal process would differ from that of the Justice Dept antitrust case against Microsoft. Agency officials who have been investigating the company will present a report to the FTC, in which they probably will recommend charging Intel with concealing key chip design information from computer manufacturers involved in disputes with Intel. Intel's lawyers and executives will have the opportunity to present their case to the five-member FTC after the panel has received the recommendation. An FTC vote, which is about equal to a civil indictment, follows. Approval represents the panel's belief of sufficient evidence for trial, advancing the case to an FTC administrative law judge. The judge, who oversees a full trial in a courtroom at the FTC's office building in Washington, has the authority to dismiss the case or uphold the charges and force the defendant to comply.

Market domination, Market share

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