Digital Sues for Alleged Patent Infringement : Technology: Computer firm seeks to bar Anaheim-based Micro Technology from manufacturing some equipment.
Digital Equipment Corp. said Tuesday that it has filed a lawsuit against a much-smaller rival, Micro Technology Inc., accusing the Anaheim company of infringing on DEC patents for certain computer storage technology.
The suit is the second filed by DEC against companies that make data storage products for DEC minicomputers. DEC, based in Maynard, Mass., also makes storage products for its computer line. DEC settled a similar suit filed against Systems Industries Inc., of Milpitas, in December.
Dallas Kirk, a DEC spokesman, said the company’s suit claims that Micro Technology is infringing on four patents covering the way in which data is stored and retrieved in DEC minicomputers. The suit--filed in federal court in Denver--specifically names Micro Technology’s MA series of tape drives and its MDI series of disk drives.
Thomas Raimondi, director of product marketing, said the company expected the suit after DEC’s earlier action against Systems Industries. He said the company denies the charges.
“We are in total disagreement with all their claims and will vigorously defend ourselves,” he said. “It is their standard procedure to sue a company if they can’t beat the competition.”
Sales of equipment for the DEC market accounted for 65% of Micro Technology’s sales of $85 million for its year ended March 31, the company said.
“Obviously, we would prefer that companies like MTI voluntarily agree to stop infringing,” Charles F. Christ, a DEC vice president, said in a statement. He said Micro Technology rejected attempts to settle the matter without litigation.
DEC’s suit seeks to bar MTI from manufacturing the products that allegedly infringe on patents. It also seeks to recover an undisclosed amount of lost profits.
“DEC’s legal eagles have been busy lately,” said Michael Vizard, news editor of Digital Review, a Newton, Mass., trade magazine. “DEC is hurting financially these days, and so they’re more likely to look down on companies that make money off of them. Micro Technology is the next biggest player to Systems Industries.”
DEC sued Systems Industries two years ago and settled the case for an undisclosed sum six months ago. Kirk said DEC tried to persuade competitors to phase out production of products that it considered to be infringing on company patents.
Costa Mesa-based Emulex Corp. also manufactures storage products for DEC computers that use similar technology as involved in the Micro Technology suit. But JoAnne Martz, a company spokeswoman, said Emulex does not believe that it is infringing on any patents. She said the company has discussed the issue with DEC but declined to say if the issue has been resolved.
