Local technology firm sues Intel

Andrew Edwards

The subsidiary of a Newport Beach company that licenses patents has

sued Intel Corp. and Texas Instruments Inc., alleging that the

technology firms infringed on a patent for a computer processor.

Acacia Research Corp. announced Tuesday that its subsidiary,

Microprocessor Enhancement Corp., had filed suit in federal court.

The filing, dated April 7, stated that Intel and Texas Instruments

have received written notice of the 1995 patent and offers to license

the technology.

Intel spokesman Chuck Mulloy said his company had analyzed the

complaint and found no merit in the lawsuit.

“We plan to launch a vigorous defense,” he said.

Texas Instruments spokeswoman Gail Chandler said it was too early

for her company to elaborate on the filing.

“We will review the complaint and take appropriate action,” she

said.

The plaintiffs allege Intel used patented technology in its line

of Itanium processors and that Texas Instruments used the technology

in a line of products.

Acacia chief operating officer Robert Berman said his company,

which acquires and licenses patents, purchased the processor patent

in January. The patented technology is designed to increase processor

speed.

Acacia routinely files lawsuits to enforce patents, Berman said.

A Securities and Exchange Commission filing from March shows

Acacia filing patent infringement litigation against a number of

companies including Charter Communications Inc., EchoStar

Communications Corp., and Sony Electronics Inc. Acacia spokesman Rob

Stewart said those cases are still open.

“We have several big lawsuits against several big companies,”

Berman said. “That’s what we do. That’s our business.”

The lawsuit seeks damages for alleged patent infringement and an

injunction against future use of the patented technology. Most patent

lawsuits, Berman said, are settled so that license holders allow

other companies to pay royalties to use technology.

“Our business is licensing and enforcement. We get revenue from

the patents we license and enforce,” Berman added.

“It’s not in our best interests to stop Intel from selling them,”

he said. “It’s in our best interests, and our shareholders’ best

interests, to collect revenue.”