| DIGITAL EQUIPMENT CORPORATION SUES INTEL CORPORATION
FOR VIOLATING MICROPROCESSOR ARCHITECTURE PATENTS
...Lawsuit maintains Intel infringed Digital patented technology
to enhance performance of Pentium, Pentium Pro
and Pentium II microprocessors...
WORCESTER, Mass., May 13, 1997 -- Digital Equipment Corporation
(NYSE:DEC) has filed a lawsuit in U.S. District Court, District of
Massachusetts, here charging Intel Corporation with willful infringement
of 10 Digital patents in making, using and selling microprocessor
products, including its Pentium, Pentium Pro and Pentium II
microprocessor families.
Alleging that Intel's patent infringement has caused Digital
economic injury and, if not stopped, would cause irreparable harm, the
company seeks both an injunction and monetary damages, including triple
damages for Intel's willful violation of the patents. The injunction
would prohibit Intel from using Digital's patented technology in its
present and future microprocessor products.
"Over the years, Digital has made substantial investments in
developing computing architectures and microprocessor technology," said
Digital Chairman Robert B. Palmer. "It is our duty to our shareholders,
customers, partners and employees to protect our intellectual property
rights and the benefits of our industry-leading research and
development efforts."
The patents cited in Digital's lawsuit protect Digital's
innovations in high-performance computing architecture and
microprocessor technology. The patents relate to technologies -- cache
management, branch prediction and high-speed instruction processing --
which are vital to state-of-the-art microprocessor design. The patents
were issued by the U.S. Patent and Trademark Office between 1988 and
1996.
"In developing its VAX and Alpha products, Digital significantly
advanced computer architectures and microprocessor design," Palmer said.
"Intel's unauthorized use of Digital's technology to significantly
enhance the performance of its microprocessors violates Digital's legal
rights.
"As a result of its infringement of our patents," Palmer
continued, "Intel has strengthened its monopoly in the X86 market and
is seeking to extend its monopoly to higher-performance microprocessors.
This conduct threatens the competitive environment essential for
continued innovation and growth in the computer industry."
Thomas C. Siekman, Digital vice president and general counsel,
said, "This lawsuit is essential to protect the billions of dollars
Digital and its shareholders have invested in the development of
leading-edge computing and microprocessor technology."
Digital Equipment Corporation is a world leader in open client/
server solutions from personal computing to integrated worldwide
information systems. Digital's scalable Alpha and X86 platforms,
storage, networking, software and services, together with industry-
focused solutions from business partners, help organizations compete
and win in today's global marketplace.
-End-
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| I have been asked by Corporate Communications to remind everyone here that
discussion of pending litigation is not allowed, as anything said here is
"discoverable". The moderators will rigorously enforce this. I know how
tempting it is to want to discuss the issues, but we'll all just have to
restrain ourselves. This topic is write-locked.
Steve
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| Date: 13-MAY-1997 12:17:53.01
From: SALES::SALES::MRGATE::"A1::COPPERMAN.HARRY"
Subj: DIGITAL sues Intel for violating ... patents 1
From: NAME: Harry Copperman
FUNC: VP & GM Systems Business Unit <COPPERMAN.HARRY@A1@SALES@PKO>
To: See Below (Distribution List Truncated)
To: All Employees of the Systems Business Unit, Networks Products Business
Unit, DIGITAL Semiconductor, the Printer Group
Subject: DIGITAL Sues Intel for Violating Microprocessor Architecture Patents
Today, DIGITAL has taken legal action against Intel Corporation for the
deliberate infringement of ten DIGITAL patents in the design of its Pentium,
Pentium Pro and Pentium II microprocessor products.
This difficult decision was not made easily. We have a responsibility to our
shareholders, our customers and to DIGITAL employees to protect the company's
assets.
Technology is the very definition of DIGITAL. It is our lifeblood. Our
technology is the culmination of the innovation and creativity of our patent
holders, supported by thousands of DIGITAL colleagues. To unlawfully use our
technology is unconscionable.
Our game plan does not change. We will continue to aggressively execute our
strategy of providing network solutions across the enterprise. We will build
on our success in our 64-bit environment - UNIX and OpenVMS. We will grow our
strong position in Windows NT solutions, including Alpha and x86-based
platforms. We have long-standing supply agreements with Intel and we will
retain competitive access to the company's x86 technology. We will continue to
meet the growing demand for our networking products. We are committed to
strengthening our Alpha chip volumes in the marketplace. We are the
acknowledged leader in high-performance technology and will remain so.
When our customers and partners ask how this action will affect them, you can
say with confidence that we will continue to provide products, services and
solutions without interruption, including our X86 line. Ultimately, DIGITAL
believes that upholding intellectual property rights is critical to
technological advancement and resulting solutions for our customers, and to
innovation and growth in the industry.
I ask all employees of the Systems Business Unit, DIGITAL Semiconductor and
the Network Products Business Unit to focus on the business. As this suit
plays out, we must deliver on our goals for Q4 and gear up for a successful
FY98.
I am more confident than ever in DIGITAL and the innovative technology
solutions we have developed for our customers. I look forward to working with
you as we continue to grow our business.
Sincerely,
Harry Copperman
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