New Lawsuit Rekindles Intel, Broadcom Fight | eWeek

New Lawsuit Rekindles Intel, Broadcom Fight

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eWEEK EDITORS
Nov 20, 2001
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Broadcom Corp. has filed a new lawsuit against Intel Corp., accusing the giant chipmaker of infringing on its patents. The suit marks the latest in a series of legal skirmishes between the two rivals.

In the latest squabble, Broadcom, a manufacturer of chips used in networking equipment and servers, accuses Intel of illegally using its proprietary graphics technology in the Intels chip sets.

The suit, filed Monday in U.S. District Court in Texas, seeks triple damages, as well as interest on the damages awarded and attorney fees.

Intel, based in Santa Clara, Calif., did not return calls seeking comment on the case.

Since early last year, Broadcom and Intel have been embroiled in high-profile court battles in which they have accused one another of stealing trade secrets.

In the biggest case, Intel filed suit in March 2000 to block Irvine, Calif.-based Broadcom from hiring three former Intel employees, alleging its rival had recruited the workers to obtain confidential information. Broadcom countersued, asking the court to halt the sale of two types of Intel networking chips that it claimed utilized technology stolen from Broadcom.

Testimony in the case by senior executives of both companies drew widespread media attention, in large part because of its focus on intellectual property rights in an industry where companies often recruit employees away from rival firms.

In perhaps the most damaging development in the case, the court called the testimony of Broadcom CEO Henry Nicholas III “unpersuasive and not credible.”

The two companies settled in November 2000 before the court issued a final ruling. Details of the settlement were not disclosed.

In addition to that case, Intel last year filed suit in U.S. District Court in Delaware accusing Broadcom of violating five Intel patents. That case has yet to be resolved.

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