Digital Sues Irvine Firm Over Product Similarities
Digital Equipment Corp., America’s second-largest computer maker, has sued an Irvine computer terminal manufacturer for selling a line of products that Digital charged looked too much like its products.
The lawsuit against CIE Terminals Inc., filed last month in New Jersey federal court, contends that CIE’s CIT-220-plus model mimics Digital’s own wedge-shaped video monitor, set-up screen formats and keyboard layout.
“This is the first time we have taken action against a company based on the appearance of a product,” said Joe Codispoti, a Digital spokesman. “But it is certainly not the first time we have protected our rights. We have a policy of vigorously protecting our rights and our interests.”
He said in a phone interview that Digital also contends that CIE’s instruction manual is almost identical to its own, thus violating Digital’s copyrights.
In recent years, the nation’s computer makers, including IBM and Apple, have aggressively gone to court to protect copyrights and trademarks. In most cases, the companies are trying to thwart efforts to copy their electronics.
Digital’s action is unusual because it is aimed at protecting the external design of a piece of equipment, rather than the internal circuitry.
Although the U.S. District Court in Newark failed to grant Digital’s request for a preliminary injunction against CIE Terminals Inc. last Dec. 28, Digital officials said Friday that they expect a hearing to be set in late February.
CIE Terminals is a unit of C. Itoh Electronics in Los Angeles. Their parent company, C. Itoh & Co., is based in Tokyo.
CIE officials said Friday that the company intends to continue selling CIT-220-plus terminals while the case is pending.
‘A Complete Surprise’
“It is not the intention of our company to violate the legitimate rights of any company,” said Mike Fujiwara, executive vice president and general manager of CIE Terminals. He said Digital’s lawsuit “came as a complete surprise” because another line of CIE terminals, compatible with Digital equipment, has been on the market for more than four years.
Digital reported net income of $329 million on revenue of $5.6 billion for the 1984 fiscal year ended June 30.
C. Itoh does not report separate figures for its U.S. subsidiary. But Datamation, a computer industry journal, reported in June that the Japanese company’s U.S. electronics operation sold $360.3 million worth of computer equipment in 1983.
