Compaq files lawsuit after top staff go to Transmeta server start-up

RLX accused of trade secret violation

By John Leyden • Get more from this author

Posted in Business, 26th February 2001 12:38 GMT

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Compaq has filed a lawsuit against RLX Technologies, the server start-up that's using Transmeta Crusoe chips to create low-power "dense" servers.

Q alleges that RLX poached a number of former senior executives has violated its trade secrets. RLX was founded by Gary Stimac, formely a Compaq server exec.

According to the lawsuit, RLX recruited other key Compaq executives, including former vice presidents Mike Perez, Kevin Bohren and Keith McAuliffe, who went on to improperly disclose key Compaq technologies and strategies to their new employer.

A Texas court considering the case has made a temporary restraining order against RLX forbidding it from recruiting further staff from Compaq.

The Transmeta-powered RLX servers, codenamed "Razor", are expected to be revealed by the summer.

Last week RLX Technologies announced that it had secured $40 million in fresh funding from IBM and Soros Private Equity Partners, among others. ®