[Search for users] [Overall Top Noters] [List of all Conferences] [Download this site]

Conference 7.286::digital

Title:The Digital way of working
Moderator:QUARK::LIONELON
Created:Fri Feb 14 1986
Last Modified:Fri Jun 06 1997
Last Successful Update:Fri Jun 06 1997
Number of topics:5321
Total number of notes:139771

5284.0. "Digital sues Intel - topic writelocked - see .3" by WOTVAX::rasmodem40.reo.dec.com::watson (OK, whats todays long term strategy?) Tue May 13 1997 09:44

         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.

T.RTitleUserPersonal
Name
DateLines
5284.1Press releaseQUARK::LIONELFree advice is worth every centTue May 13 1997 09:5954
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-
5284.3QUARK::LIONELFree advice is worth every centTue May 13 1997 10:017
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
5284.4Message from Harry CoppermanQUARK::LIONELFree advice is worth every centTue May 13 1997 17:1462
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

Distribution:  This message was delivered to you utilizing the Reader's Choice 
delivery services.  You received this message because you are part of the 
Systems Business Unit, Networks Products Business Unit, DIGITAL Semiconductor, 
and the Printer Group organizations.  If you have questions regarding this 
message, please contact the author.