Original URL: http://www.theregister.co.uk/2008/08/19/intel_sues_negotiated_data_solutions/
Intel slings sue ball at N-Data
Ethernet patent skirmish
Posted in Data Networking, 19th August 2008 10:43 GMT
Free whitepaper – Fundamental Principles of Generators for Information Technology
Intel has filed a lawsuit against Negotiated Data Solutions, LLC (N-Data) in a royalties dispute about the industry standard for Ethernet computer networking.
Chipzilla wants a court to rule that N-Data's patents are invalid or were already paid under an agreement with National Semiconductor Corporation, which originally owned the patent. It hopes to protect Intel's customers – including Dell – against any royalty claims.
The chip maker filed (http://dockets.justia.com/docket/court-txedce/case_no-2:2008cv00319/case_id-111520/) the intellectual property suit with the Texas Eastern Court Marshall office last Friday. Intel has demanded a permanent injunction "barring N-Data from enforcing the Patents-in-Suit against Intel, Dell, or any other Intel customer".
Intel alleges that N-Data has deliberately impeded the firm’s prospective biz relationships and economic lead.
It also insists that N-Data’s ethernet patent claims were in fact settled way back in 1994 when the National Semiconductor Corporation made a commitment to the electronics industry standard setting organisation (IEEE) to license the technology.
According to Bloomberg (http://www.bloomberg.com/apps/news?pid=20601127&sid=aILR65eQvbeQ&refer=law), National agreed that if the IEEE adopted a standard based on National’s patented NWay tech, the group would in return offer an upfront, one-time paid royalty of $1,000 per licensee to vendors and sellers of IEEE standard products.
This is the latest legal spat involving N-Data. Earlier this year it settled a US Federal Trade Commission complaint that it was demanding high royalties from the computer industry for the Ethernet standard.
Intel and N-Data could not be immediately reached for comment. ®