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Patent infringement suits ramp up for the holiday season

In what appears to be a bit of a shocker in the industry, Silicon Graphics Inc. this week filed a patent infringement lawsuit against ATI Technologies Inc. Current details on the patent infringement is short but SGI is claiming that ATI infringed on SGI U.S. Patent No. 6,650,327, which covers some technical aspect of graphics processing. Details on what exactly the patent is about was also omitted.

Silicon Graphics Inc. (SGI) is also seeking damages at an unspecified amount and an injunction, stopping ATI from developing and shipping graphics processors that infringe on SGI's patents. At this time, it's not clear what ATI has done, or if ATI will respond with its own lawsuit since both companies have been developing graphics technologies for quite a number of years.

"The Company's technology covered by the '327 patent is an important resource in achieving enhanced graphics processing demanded by today's computer systems," said Dennis McKenna, chief executive officer of Silicon Graphics. The company also indicated that whatever patent 327 was, it also licensed it for use with a number of ATI's competitors -- although the company did not indicate which companies were using the patent.

ATI itself recently completed the final stages of its merger with AMD. ATI shareholders approved of the merger in a recent meeting and both companies are now one. Neither AMD nor it's ATI division had anything to say about SGI's lawsuit.

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By othercents on 10/25/2006 12:00:22 PM , Rating: 5
Wasn't an issue until after the merger was finished. I guess SGI things they can get more money out of AMD/ATI than if they had sued ATI by itself.


RE: Figures
By Behlal on 10/25/2006 12:10:37 PM , Rating: 3
Interesting thought, but I imagine the wait has more to do with the fact that they only just came out bankruptcy protection and re-floated their stock on a new stock exchange. This move is to show to investors that there is something worth investing in.

RE: Figures
By othercents on 10/25/2006 12:12:07 PM , Rating: 2
Well their press release was on the 23rd, so they sued before the merger was over. Also the patent is about using floating point for graphics processing application.


RE: Figures
By deeznuts on 10/25/2006 1:01:13 PM , Rating: 2
If they had sued them months ago they wouldn't have an award anyway for years, so I don't see how waiting to file right before or during a closure of a merger announced months ago makes a difference.

RE: Figures
By marvdmartian on 10/25/2006 3:07:56 PM , Rating: 1
What AMD should do is look at SGI, and say, "I'm sorry.....ATI no longer exists. If you'd like to talk to our lawyers, we'd be happy to entertain whatever argument you have." LOL

THEN AMD should buy out SGI!!

RE: Figures
By patentman on 10/25/2006 8:17:08 PM , Rating: 4
what you stated does not comport with the law of corporations. In mergers, liabilities of the absorbed company are generally imputed to the company resulting after the merger.

"The whole principle [of censorship] is wrong. It's like demanding that grown men live on skim milk because the baby can't have steak." -- Robert Heinlein
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