Judge Reverses Ruling In Intergraph vs. Intel

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October 13, 1999 (2:32 AM EDT)

Judge Reverses Ruling In Intergraph vs. Intel

By Mark Hachman,

In a stunning twist, a U.S. district court on Tuesday reversed its own ruling on a fundamental point of law resting at the heart of Intel's patent dispute with OEM Intergraph.

Judge Edwin Nelson ruled that National Semiconductor did indeed own the "Clipper" microprocessor patents, and, therefore, Intel is covered under its 1976 patent cross-licensing agreement with National Semiconductor. Judge Nelson granted Intel's motion for summary judgment and tossed out Intergraph's patent claims with prejudice.

Intel may now use the decision to file a motion to resolve the case before it reaches trial, the judge ruled.

A representative for Intergraph, Huntsville, Ala., could not be reached for comment.

A spokeswoman for Intergraph, Huntsville, Ala., however, said the company "believes Judge Nelson's original ruling to be correct" and will appeal the decision.

Intergraph had originally sued Intel for charges including patent infringement, fraud, and monopolistic behavior. The workstation manufacturer alleged that Intel illegally coerced Intergraph to give up its patents to the Clipper microprocessor, which it originally acquired from Fairchild Semiconductor. As part of the coercion, Intergraph charged Intel with withholding key microprocessor samples and technology.

The judge's ruling involves a legal technicality, but one that lies at the heart of the case. When Intergraph and National Semiconductor purchased separate parts of Fairchild in 1997, there was a question of who owned the Clipper patents. Judge Nelson originally ruled that the Clipper technology transferred directly to Intergraph, never passing through Intel. If it had, Intel's patent cross-license would be triggered, and Intel would legally have access to the technology.

Nelson's ruling now states exactly that.

"The court is now satisfied that National Semiconductor Corporation did, in fact, acquire 'control' of the subject patents within the meaning of the cross-licensing agreement between itself and Intel Corporation dated June 1, 1976 and that Intel was then and is now licensed to use such patents as set out in said cross-licensing agreement," the ruling says.

The case of Intergraph vs. Intel is still scheduled for trial in the northern Alabama federal court on June 12, 2000, pending any pre-trial settlements or rulings.