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Intel banned from selling Itanic chips

But receives 30-day stay of execution
Thu Oct 31 2002, 10:03
INTEL HAS BEEN ISSUED with an injunction, banning it from "manufacturing, using selling, offering to sell or importing into the United States Intel's Itanium or Itanium 2 processors or any colorable. imitation thereof."

The chipmaker has thirty days, however, to pay Intergraph $150 million before the injunction comes into effect. It can also now appeal the decision by the Texan district court, which decided Intel had infringed Intergraph's patents in the design of the processor and earlier this week scuppered the chipmaker's petition for a re-trial.

The two companies agreed on an arrangement after an initial hearing back in April, that Intel would pay Intergraph the $150 million sum, if found to have infringed the smaller company's patents. Intel also agreed to pay a further $100 million, if it loses the appeal. This payment will also allow it to ship its Itanic chips sporting Intergraph technology.

The final ruling of the Texan court leaves mighty Intel red faced and severely embarrassed. The company has already announced its intention to appeal against the judgement and should it fail at that hurdle, the company that claims to innovate is more likely to be labelled as one that copies on the sly. µ

See also
Intergraph sues Intel over Itanic
Intel pays Intergraph $300 million to shut up
Intel faces coughing up to Intergraph again
Intel infringed Intergraph patents in Itanic designs
Intel's request for new Intergraph trial rejected
The Judgement (pdf).


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