<<< HUMANE::DISK$SCSI:[NOTES$LIBRARY]DIGITAL.NOTE;1 >>> -< The Digital way of working >- ================================================================================ Note 5284.0 Digital sues Intel - topic writelocked - see .3 3 replies WOTVAX::rasmodem40.reo.dec.com::watson "OK, whats t" 69 lines 13-MAY-1997 08:44 -------------------------------------------------------------------------------- DIGITAL files suit against Intel for patent infringements (Following is a letter to employees from DIGITAL Chairman Bob Palmer. If you have any additional questions, please talk them over with your manager.) Late yesterday, DIGITAL filed a lawsuit in U.S. District Court, District of Massachusetts, charging Intel Corporation with willful infringement of 10 DIGITAL patents in making, using and selling microprocessor products, including the Pentium, Pentium Pro and Pentium II microprocessor families. Intel's patent infringement has caused economic injury and, if left unchallenged, would cause DIGITAL irreparable harm. We are seeking an injunction that would prohibit Intel from using DIGITAL's patented technology in its present and future microprocessor products, as well as monetary damages, including triple damages. We took this legal action because it is the right thing to do for our shareholders, customers, partners and employees. They depend on us to protect our intellectual property rights and the benefits of our industry-leading research and development efforts. Bringing fresh new ideas and innovative technology to market that benefit our customers has been the proud legacy of DIGITAL for 40 years. This action is about fair competition and integrity, the first of DIGITAL's core values: "We choose to be honest in all our business interactions and remain steadfast when challenged." A significant portion of the performance improvements Intel has achieved over the past few years is a direct result of using DIGITAL technology. This has enabled Intel to strengthen its monopoly in the x86 market, which it is now seeking to extend to higher-performance microprocessors. Such conduct not only threatens the competitive environment, it also threatens DIGITAL because it reduces our competitive advantages. Your management team is determined to stay the course until we win. This legal action must not be a distraction for us, but rather a bold reminder of what DIGITAL really stands for. In my April 29 progress report to you about our sales and marketing realignment, I stated that building the DIGITAL brand was one of our top priorities. Historically, the DIGITAL brand has meant a passion for innovation and for providing technology-based solutions to customers' business problems. Today's legal action points directly at the essence of the DIGITAL brand. While this action is being resolved in the courtroom, we need to focus our energy on strengthening our business. Let's start by delivering a strong Q4 and by building a winning spirit for FY98. One of the keys to our success is our x86 business. We are fully committed to delivering the leadership products and services our customers demand. Just last week, DIGITAL announced a powerful new line-up of desktop PCs and personal workstations based on x86 technology. The necessary contracts are in place to ensure that we will retain competitive access to x86 technology from Intel. While our competitors are talking about their plans to ship 64-bit platforms, DIGITAL is shipping two major 64-bit environments -- DIGITAL UNIX and OpenVMS -- and we plan to be the first to ship 64-bit Windows NT. For customers looking at a Windows NT solution, our Alpha and x86 platforms, and our alliance with Microsoft, uniquely position us as the most experienced and best qualified Windows NT vendor. With our heritage of networking products, global multivendor services and innovative technology like AltaVista, DIGITAL is already winning in the Internet market. While I hope that today's action to protect our intellectual property will be applauded by others, there will be some who do not fully understand our motives and underestimate our resolve. Don't shrink from the negative response that Intel will no doubt throw at us. When questioned about this by family, friends, customers or colleagues, tell them that DIGITAL is standing up for the freedom of innovation -- DIGITAL engineers worked hard to earn those patents. I have never felt better about working for DIGITAL, and I hope that you feel the same way. Thank you for your continued support.