Federal Court Rules Intel Has No License To Use Intergraph's Clipper Patents; Says Intel's License Defense is Fundamentally Flawed.HUNTSVILLE, Ala.--(BUSINESS WIRE)--June 7, 1999-- The Federal District Court which is hearing Intergraph Corporation's (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :INGR) lawsuit against Intel Corporation (company) Intel Corporation - A US microelectronics manufacturer. They produced the Intel 4004, Intel 8080, Intel 8086, Intel 80186, Intel 80286, Intel 80386, Intel 486 and Pentium microprocessor families as well as many other integrated circuits and personal computer networking has struck down one of Intel's principle defenses by ruling that Intel has no license to use Intergraph's "Clipper clipper, type of sailing ship, designed for speed. Long and narrow, the clipper had the greatest beam aft of the center; the bow cleaved the waves; and the ship carried, besides topgallant and royal sails, skysails and moonrakers—a veritable cloud of sails. patents" as Intel had claimed. Intergraph sued Intel for patent infringement patent infringement n. the manufacture and/or use of an invention or improvement for which someone else owns a patent issued by the government, without obtaining permission of the owner of the patent by contract, license or waiver. , illegal coercive behavior, and antitrust violations of the Sherman Act. Whether Intel is guilty of patent infringement will be determined at trial next year. The current court ruling, however, silences Intel's claim to have carte blanche CARTE BLANCHE. The signature of an individual or more, on a while. paper, with a sufficient space left above it to write a note or other writing. 2. In the course of business, it not unfrequently occurs that for the sake of convenience, signatures in blank are license to use the patents under an old business agreement with National Semiconductor Corporation. "NSC NSC abbr. National Security Council Noun 1. NSC - a committee in the executive branch of government that advises the president on foreign and military and national security; supervises the Central Intelligence Agency Had No Legal Authority" In defending its use of Intergraph patented technology in Intel's Pentium family of processors, Intel argued that it had rights to the patents through a longstanding cross-license agreement between Intel and National Semiconductor Corporation (NSC). In 1987, Intergraph and NSC each bought parts of Fairchild Semiconductor Corporation ("Fairchild") in concurrent transactions. Intergraph bought Fairchild's Advanced Processor Division, the original developer of the Clipper microprocessor. Intel later claimed that Fairchild's Clipper patent applications were captured under the cross-licensing agreement between Intel and NSC. Federal District Judge Edwin Nelson disagreed, however, in a ruling issued late Friday. "The undisputed facts establish that NSC had no legal authority to grant a license, as the patents at issue belonged not to NSC but to a legally distinct corporation - Fairchild. Intel thus never received a license from any entity with the power to grant one," Judge Nelson wrote in a Memorandum of Opinion accompanying his Order. "The fundamental flaw in Intel's license defense is that the alleged license would have originated from NSC, while the Clipper patents quite clearly belonged not to NSC but to Fairchild, a separate corporation," the Judge added. In considering this "dispute between two claimants to a property right," Nelson said, "it is the court's view that Intergraph - the claimant CLAIMANT. In the courts of admiralty, when the suit is in rem, the cause is entitled in the Dame of the libellant against the thing libelled, as A B v. Ten cases of calico and it preserves that title through the whole progress of the suit. who obtained the property from its legal owner - must prevail." In conclusion Judge Nelson wrote, "...the court concludes that no license passed to Intel, and Intergraph is entitled to summary judgment on Intel's license defense." The case, filed in November 1997, is being heard in the U.S. District Court for the Northern District of Alabama. Trial is scheduled for early next year. Cross-license Agreement Excludes Subsidiaries Directly citing provisions of the Intel-NSC cross-license agreement, Judge Nelson noted that the "plain language of the license ... excludes subsidiaries ... unless and until they consent to the addition of their patents to the cross-license pool. In the absence of Fairchild's consent, the terms of the license did not cover Fairchild's Clipper patents." Commenting on the court ruling, Intergraph CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. and Chairman Jim Meadlock stated, "Intel repeatedly has made a big issue about the `fact' they have a license to the Clipper patents. The court affirms they don't have such a license. We believe the entire Pentium family infringes on our patents." Case Background In a lawsuit filed November 17, 1997, in the U.S. District Court, Northern District of Alabama, Intergraph alleged that Intel was using its dominant market position in an attempt to coerce the workstation manufacturer into giving up certain key patent rights. These coercive tactics include the withholding of essential design and defect information for released Intel products and the intentional interference with Intergraph customers and suppliers. These actions delayed shipment of various Intergraph Computer Systems products and have damaged Intergraph's business, according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. Intergraph's lawsuit. (Intergraph Computer Systems is a wholly owned subsidiary Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. of Intergraph Corporation.) On June 17, 1998, Intel filed a Motion for Summary Judgment motion for summary judgment n. a written request for a judgment in the moving party's favor before a lawsuit goes to trial and based on recorded (testimony outside court) affidavits (or declarations under penalty of perjury), depositions, admissions of fact, answers on Its License Defense against Intergraph's claim of patent infringement. In response, on September 15, 1998, Intergraph filed a Cross-Motion For Summary Adjudication The legal process of resolving a dispute. The formal giving or pronouncing of a judgment or decree in a court proceeding; also the judgment or decision given. The entry of a decree by a court in respect to the parties in a case. Of Intel Corporation's License Defense. The text of the court's April 10, 1998, "Memorandum of Opinion and Preliminary Injunction A temporary order made by a court at the request of one party that prevents the other party from pursuing a particular course of conduct until the conclusion of a trial on the merits. A preliminary injunction is regarded as extraordinary relief. " is available at (www.intergraph.com/intel/order.htm). Other extensive background information is at (www.intergraph.com/intel/). Intergraph Background Information A computer industry pioneer, Intergraph Corporation provides comprehensive engineering, mapping/GIS, and IT solutions for the process and building, utilities and transportation industries, and local and national governments. For desktop or enterprise solutions, Intergraph offers software, computers, support, consulting, and training services. Industry analysts consistently rank Intergraph as a top solutions provider in the markets the company has served for three decades. Intergraph common stock trades on The NASDAQ Stock Market Nasdaq stock market The first electronic stock market listing over 5000 companies. The Nasdaq stock market comprises two separate markets, namely the Nasdaq National Market, which trades large, active securities and the Nasdaq Smallcap Market that trades emerging growth companies. under the symbol: INGR. Visit our web site at www.intergraph.com for more information about Intergraph Corporation. Intergraph and the Intergraph Logo are registered trademarks of Intergraph Corporation. Intel is a registered trademark of Intel Corporation. Other brands and product names are trademarks of their respective owners. Timeline Concerning Clipper Patent Applications and Patents September 15, 1987 Intergraph signs Letter of Intent with National Semiconductor Corporation (NSC) to buy Advanced Processor Division (APD APD atrial premature depolarization (see atrial premature complex, under complex ); pamidronate. ) of Fairchild Semiconductor. September 30, 1987 Intergraph signs Purchase Agreement with NSC to buy APD of Fairchild Semiconductor. October 8, 1987 Fairchild assigns entire interest in Clipper patent applications directly to Intergraph -- simultaneous with the transfer of all of its outstanding stock to NSC. August 22, 1989, November 28, 1989, February 6, 1990, June 12, 1990, and February 25, 1992 Clipper patents issued to Intergraph by U.S. Patent Office. |
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion