Federal Trade Commission Ruling Validates Open Standards Process; Vesa Prevails Against Dell's Anti-Trust Move.

SAN JOSE, Calif.--(BUSINESS WIRE)--Dec. 1, 1995--The Video and Electronics Standards Association (VESA) announced today that the Federal Trade Commission (FTC) backed the computer industry's open standards setting initiatives via its ruling against Dell Computer regarding Dell's attempt to assert patent rights against VESA's Local Bus (VL-Bus) standard.

In a settlement agreement, Dell has agreed to drop all infringement claims on this widely-used computer standard, settling the FTC findings that it unfairly restricted competition. In the settlement, Dell agreed not to enforce its patent against manufacturers who use the VL Bus design.

"This ruling by the FTC is aimed directly at ensuring fair competition in the industry," said Hans van der Ven, VESA's Chairman of the Board, "It underscores the importance of VESA's efforts to promote impartial and open standards that will ensure compatibility among all computer manufacturers' products."

In 1992, Dell became a member of VESA, a non-profit standards-setting organization consisting of most of the major U.S. computer hardware and software manufacturers. Dell participated with other computer companies in a VESA committee which developed the design specifications for a computer bus design known as the VESA Local Bus or VL-Bus.

VL-Bus is a component that transfers instructions from a computer's central processing unit to disk drives, video displays, and other equipment. The VL-Bus specification was created to standardize the hardware interface of peripheral devices to a low cost, high speed bus, and to ensure compatibility among a wide variety of graphics boards, monitors, and system software.

During their participation in the standards setting process, Dell certified that the company knew of no patent claims that would be violated by the design that was to be adopted by all manufacturers. The VL-Bus standard was released in August 1992, and was installed in over 1.4 million computers shipped in the eight months immediately following adoption of the standard.

In 1993, Dell asserted that the VL Bus technology violated a patent held by Dell. As a result of Dell's patent claims, the FTC concluded that industry acceptance of this standard was hindered because some manufacturers delayed use of the standard until the patent issue was clarified; that costs of implementing the VL-Bus design were raised, as well as the costs of developing competing bus designs. The FTC also concluded that Dell's claims have undermined the industry's willingness to participate in standards-setting efforts.

VESA is an international organization that sets and supports industry-wide video, audio, graphics and electronic standards designed to support the PC, workstation, and other computing environments. It is committed to developing open, interoperable and international standards for the global marketplace, thus ensuring worldwide market growth.

VESA is a non-profit organization, established in 1989, and headed by a Board of Directors representing a membership of 260 corporations worldwide. For more information or to arrange an interview, please call Janet Courtenay at the VESA office, 408/435-0333.

CONTACT: Video Electronics Standards Association 

Janet Courtenay, 408/435-0333

email: [e-mail]

or

Panasonic Industrial

Hans van der Ven, 201/392-6581