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Elmer Phud

09/21/03 6:20 PM

#13700 RE: spokeshave #13697

Spokeshave -


It occurred about the same time as the first Intergraph case:

I see no mention of a Compaq suit in the FTC link you provided but it does confirm that Intel was not found to be in violation of any laws.

The settlement [in Digital vrs Intel] amount was undisclosed, but I have seen estimtes as high as 1.6 billion.

The general cost was disclosed but not the details. I was wrong about it being $500Million, it was $700Million. About 1/3 the cost of a new fab and all the other goodies were thrown in to boot!

http://news.com.com/2100-1023_3-204668.html

Who took who to the cleaners?

No, it's not. There are two cases involving Intergraph. Intel settled the first one for $300,000,000.00. The second one has yet to be decided.

Yes, you're right, there were 2 and as a shareholder I think they did the right thing settling the first and limiting the second as it's still in court. You just can't leave the fate of your company in the hands of a non technical jury in a hostile state. That's not an admission of wrong, just a realistic analysis of the risks involved. They did the smart thing.

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Windsock

09/21/03 10:43 PM

#13717 RE: spokeshave #13697

The core claims the Digital and Intergraph suits against Intel were patent. And that was the settlement $$ were for patent licenses. In addition, in the Digital case, Intel bought Digital's fab and the Strong Arm design.

All of the antitrust claims of Intergraph were thrown out of Court before a trial, Because the antitrust claims were found without merit, the FTC entered a settlement with Intel that said Intel could withold confidential technology if a company sued it for patent infringement.

The settlement basically allowed Intel to do what it had done with Intergraph, ie refuse to deliver confidential information on its processors. The FTC claimed a victory but in reality Intel signed a consent decree that said Intel's conduct was lawful. In other words, Intel received the FTC's seal of legal approval and its conduct was insulated from attack.