CHIPS AND TECHNOLOGIES WINS FIRST ROUND IN PATENT LITIGATION WITH INTEL
CHIPS AND TECHNOLOGIES WINS FIRST ROUND
IN PATENT LITIGATION WITH INTEL
SAN JOSE, Calif., March 10 /PRNewswire/ -- Chips and Technologies Inc. (NASDAQ: CHPS) announced today that the U.S. District Court in San Jose, denied Intel's (NASDAQ: INTC) request that Chips be barred from transferring its Super386 and SuperMath processor designs to others, including Texas Instruments. The court said that Intel had not sufficiently shown a likelihood of success on the merits to be entitled to a temporary restraining order. The court also allowed Texas Instruments to "intervene" or join in the lawsuit on the basis of an agreement between Chips and TI under which TI will manufacture the Super386 microprocessors and SuperMath co-processors. The patents Intel is asserting against Chips are covered by a patent cross-license TI has with Intel. The court's decision means that Chips and TI will be able to proceed with their manufacturing relationship even while the litigation is pending.
Chips' president and CEO, Gordon Campbell, applauded the court's decision today and expressed confidence in Chips' ultimately prevailing in the litigation. "By denying Intel's request," Campbell said, "the court is making it clear that it intends to proceed deliberately and will not be rushed into taking action that might impair Chips' ability to market its products. The clear purpose of Intel's seeking a TRO was to thwart Chips' way of doing business and its relationship with TI. Intel was not successful today in depriving customers of Chips' innovative processor products." Campbell continued, "With our manufacturing partner, Texas Instruments, in the lawsuit, our customers can be assured that we both are committed to continuing a successful product launch. Intel is using this baseless patent lawsuit to try to preserve its market position."
Chips' general counsel, Nancy Dusseau, noted that by intervening TI had supported Chips' view that TI's patent cross-license with Intel protected Chips and its customers from Intel's patent claims. "We were deliberate about how we went about designing and manufacturing our processors. In the first place, we took every measure to ensure that our processor designs do not infringe Intel's intellectual property rights. Then, because we want to avoid being harassed by Intel with meritless litigation, we selected a manufacturer, Texas Instruments, who has excellent process technology and is broadly licensed by Intel under the relevant patents. We believe the decision today is the beginning of what we expect will be total vindication of our design process and certainly means that our customers can continue their efforts to design in our products."
Campbell went on the say, "Chips' microprocessors and co-processors substantially outperform the equivalent Intel processors, and are rapidly gaining significant market acceptance. We continue to be pleased with customer acceptance of our SuperMath co-processor products. In addition, over 25 customers are showing Super386-based motherboards or systems at the CeBit show in Germany this week. Volume shipments will ramp up over the next several months, and another major wave of customer announcements is expected to follow in June."
Chips and Technologies Inc. is the world's leading supplier of integrated silicon, software and design services to the worldwide microcomputer industry. The company's products include CHIPSystem Architecture microprocessor-based solutions incorporating the SuperState System Management Architecture, VLSI CHIPSets, software accelerators, networking solutions, firmware, and design services. Chips common stock is traded over the counter and is listed on the NASDAQ National Market System under the symbol "CHPS."
/CONTACT: Jim Burkhardt of Alliance Public Relations, 408-748-0293; Michael Jacobs of Morrison & Foerster, 415-677-7000; or Nancy Dusseau of Chips and Technologies Inc., 408-434-0600/
(CHPS INTC) CO: Chips and Technologies; Intel ST: California IN: CPR SU:
RM -- SJ007 -- 6941 03/10/92 13:51 EST