Motorola Faces Sales Ban on Microchip
Motorola faces an immediate ban on its ability to sell its most popular computer chip, the 68030 microprocessor, under a tentative ruling handed down late Monday in the acrimonious patent infringement lawsuits between the U.S. firm and Japan’s Hitachi Ltd.
Three months ago, U.S. District Judge Lucius D. Bunton in Austin, Tex., ordered Motorola to stop selling its flagship microprocessor as long as it infringed on Hitachi’s patent. However, Bunton immediately stayed the effect of his ruling to allow for appeals.
On Monday, Bunton signaled his intention to lift the stay in a formal decision expected today. That would effectively prevent Motorola from selling the chip until the suits over the chip’s patents are resolved. Analysts have said that Bunton, who has publicly reprimanded both parties for failing to settle their dispute out of court, has used his rulings to spur a speedier agreement over the conflicting patents.
The 68030 microprocessor is the brains of many of Apple’s Macintosh personal computers, as well as systems made by Sun Microsystems and Hewlett-Packard. An Apple spokesman said late Monday that it was too early to know how the latest development would affect its operations. Other companies could not be reached for comment.
Although Motorola does not release sales figures for individual products, analysts have said that the 68030 is probably its largest single source of semiconductor revenue, contributing about $100 million in annual sales.
A Motorola spokesman said late Monday that the company intends to immediately appeal the latest decision and seek a new delay of its effect. “We are dismayed that Judge Bunton made this decision knowing full well that the two parties have been engaged in earnest attempts to settle this matter,” the company said in a prepared statement.
The legal wrangling started in January, 1989, when Motorola sued Hitachi, claiming that the Japanese company was using Motorola secrets in developing a series of chips. Hitachi countersued, claiming that Motorola infringed on some of its patents in the design for the 68030 microprocessor.
In his initial ruling in March, Bunton ruled that both parties had infringed on the other’s patents and levied fines against both. Bunton also ordered the companies to stop selling the offending chips. Later he stayed the effect of the ruling.
