Varian Counter-Sues Applied Materials

Varian Associates Inc. has counter-sued Applied Materials Inc. in a patent dispute and filed a separate antitrust suit claiming the value of two business units was hurt by Applied’s charge that Varian infringed four patents. Both Varian, based in Palo Alto, and Santa Clara-based Applied Materials make equipment used to manufacture computer chips. The counter-suit seeks a court order barring Applied from trying to monopolize the market for computer-chip wafer-making equipment through patent-enforcement actions. In the separate antitrust complaint, Varian charged that Applied used monopoly power to suppress competition from Varian’s thin-film and ion-implant systems business units. The suit seeks unspecified damages for “the diminution of the value” of the thin-film systems unit, which Varian sold to San Jose-based Novellus Systems Inc. last month for $150 million. Varian shares lost 6 cents to close at $53.56 on the NYSE. Applied shares fell 88 cents to close at $75.06 on Nasdaq.