Conference ricks::dechips

695.0. "DIGITAL files suit against Intel for patent infringements" by RICKS::PHIPPS (DTN 225.4959) Tue May 13 1997 11:52

From:	GRIMLY::LWIRE_SRV "13-May-1997 1051 -0400" 13-MAY-1997 10:48:13.15
To:	ricks::phipps
CC:	Everyone
Subj:	LIVE WIRE - 116.TXT - VTX Document

 Worldwide News                                                       LIVE WIRE
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 DIGITAL files suit against Intel for patent ...              Date: 13-May-1997
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          DIGITAL files suit against Intel for patent infringements
 
         (Following is a letter to employees from DIGITAL Chairman Bob
   Palmer.  If you have any additional questions, please talk them over
   with your manager.)
 
         Late yesterday, DIGITAL filed a lawsuit in U.S. District Court, 
   District of Massachusetts, charging Intel Corporation with willful 
   infringement of 10 DIGITAL patents in making, using and selling 
   microprocessor products, including the Pentium, Pentium Pro and 
   Pentium II microprocessor families.  Intel's patent infringement has 
   caused economic injury and, if left unchallenged, would cause DIGITAL 
   irreparable harm.  We are seeking an injunction that would prohibit 
   Intel from using DIGITAL's patented technology in its present and 
   future microprocessor products, as well as monetary damages, 
   including triple damages.
         We took this legal action because it is the right thing to do 
   for our shareholders, customers, partners and employees.  They depend 
   on us to protect our intellectual property rights and the benefits of 
   our industry-leading research and development efforts.  Bringing fresh 
   new ideas and innovative technology to market that benefit our 
   customers has been the proud legacy of DIGITAL for 40 years.  This 
   action is about fair competition and integrity, the first of DIGITAL's 
   core values: "We choose to be honest in all our business interactions 
   and remain steadfast when challenged."
         A significant portion of the performance improvements Intel has 
   achieved over the past few years is a direct result of using DIGITAL 
   technology.  This has enabled Intel to strengthen its monopoly in the 
   x86 market, which it is now seeking to extend to higher-performance 
   microprocessors.  Such conduct not only threatens the competitive 
   environment, it also threatens DIGITAL because it reduces our 
   competitive advantages.  Your management team is determined to stay 
   the course until we win.
         This legal action must not be a distraction for us, but rather 
   a bold reminder of what DIGITAL really stands for.  In my April 29 
   progress report to you about our sales and marketing realignment, I 
   stated that building the DIGITAL brand was one of our top priorities.  
   Historically, the DIGITAL brand has meant a passion for innovation and 
   for providing technology-based solutions to customers' business 
   problems.  Today's legal action points directly at the essence of the 
   DIGITAL brand.
         While this action is being resolved in the courtroom, we need 
   to focus our energy on strengthening our business.  Let's start by 
   delivering a strong Q4 and by building a winning spirit for FY98.
         One of the keys to our success is our x86 business.  We are 
   fully committed to delivering the leadership products and services our 
   customers demand.  Just last week, DIGITAL announced a powerful new 
   line-up of desktop PCs and personal workstations based on x86 
   technology.  The necessary contracts are in place to ensure that we 
   will retain competitive access to x86 technology from Intel.
         While our competitors are talking about their plans to ship 
   64-bit platforms, DIGITAL is shipping two major 64-bit environments -- 
   DIGITAL UNIX and OpenVMS -- and we plan to be the first to ship 64-bit 
   Windows NT.  For customers looking at a Windows NT solution, our Alpha 
   and x86 platforms, and our alliance with Microsoft, uniquely position 
   us as the most experienced and best qualified Windows NT vendor.  With 
   our heritage of networking products, global multivendor services and 
   innovative technology like AltaVista, DIGITAL is already winning in 
   the Internet market.  
         While I hope that today's action to protect our intellectual 
   property will be applauded by others, there will be some who do not 
   fully understand our motives and underestimate our resolve.  Don't 
   shrink from the negative response that Intel will no doubt throw at 
   us.  When questioned about this by family, friends, customers or 
   colleagues, tell them that DIGITAL is standing up for the freedom of 
   innovation -- DIGITAL engineers worked hard to earn those patents.
         I have never felt better about working for DIGITAL, and I hope 
   that you feel the same way.  Thank you for your continued support.