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TECHNOLOGY - Jan. 19, 1996

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Times Staff and Wire Reports

Compaq, Intel Patch Things Up: Compaq Computer Corp. will rejoin Intel Corp.’s “Intel Inside” marketing campaign, ending a dispute with the chip maker that flared in 1994. The arrangement was part of a broad patent-cross-licensing deal announced by the companies. Financial terms were not disclosed. Compaq is the largest customer of Intel’s microprocessors, the “brains” of a personal computer, but it dropped out of the “Intel Inside” promotion in 1994. Compaq Chief Executive Eckhard Pfeiffer publicly criticized the promotion for causing customers to think that a PC with an Intel chip is like any other. But Compaq Senior Vice President John Rose said consumers’ brand awareness has grown since then. The companies’ agreement allows them to freely share technology advances.

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