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Compaq settles with Transmeta server start-up

Legal shave puts Razor in lather

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Compaq has dropped its legal action against Transmeta-based server maker RLX Technologies.

The Big Q acQused RLX, a company founded by former Compaq PC server chief Gary Stimac and erstwhile Compaq VPs Mike Perez, Kevin Bohren and Keith McAuliffe of gaining knowledge of Compaq's product plans.

Stimac has raised $60 million in VC funding to build the super dense, Transmeta-powered servers, and turned to his former employer for staff.

Or as the corporate FAQ puts it: "In a series of meetings held this past November at a Houston-area barbeque restaurant, Stimac called former team mates, alerting each that he was 'putting the band together again' with a new business opportunity. From Florida to Washington State, from California to Colorado, they all came. No one turned him down."

Compaq has its own plans for super-dense, low power servers based on Intel processors. RLX's Razor boxes are due to be unveiled by mid-year. Neither party disclosed the terms of the settlement. ®

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