Intel's bold steps to thwart foe in patent case
Article Abstract:
Intel Corp. is attempting to counter a rival's patent-infringement case against it with an unusual legal tactic. The semiconductor giant is using Maelen Ltd., a shell company in the Cayman Islands, to counter the suit by a law firm called TechSearch LLC. At the same time, Intel used Maelen to argue on its behalf in federal bankruptcy case of International Meta Systems Inc., a computer-chip-design firm located in California. The roots of the case go back to IMS's attempts to design a microprocessor to match the fastest chips of Intel. After IMS ran out of money in 1997 and sold TechSearch its patent in 1998, TechSearch agreed to pay IMS $50,000 plus 10% of whatever it could recoup in patent-infringement suit it filed against Intel in March of 1998. In January 1999, Maelen asked bankruptcy judge to void sale of IMS's patent to TechSearch, saying that the patent had been sold for too little. TechSearch objected to Maelen's motion, suspecting that it was a front firm for Intel. Intel did not initially disclose its connection to Maelen but was eventually forced to admit it. The judge in the bankruptcy case rejected the motion to rescind IMS's patent sale, questioning the ethics of Intel's tactics.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1999
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AMD's first-period net exceeds expectations despite 28% decline
Article Abstract:
Advanced Micro Devices Inc (AMD) reports net income for 1st qtr 1993 of $61.5 million, or 63 cents per share, down 28 percent from $84.9 million, or 90 cents per share, in 1st qtr 1992. Sales remain constant at $407.4 million. Despite the drop in earnings, the results beat Wall Street predictions that AMD's profit would range from $47 million to $52 million. As a result, the company's stock jumps $1.25 to $23.50 in New York Stock Exchange trading on Apr 6, 1993, the day the results are announced. The drop in AMD's earnings was fueled by a higher tax rate on the company and severe price pressure on its AM386 microprocessor. Still, the AM386, a clone of Intel's 80386, did better than expected, especially in Europe and the Pacific Basin. AMD also reports a 66 percent jump in sales of flash memory chips, to $39.2 million from $23.6 million in 4th qtr 1992.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1993
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