HP accuses Gateway over IPR

LOS ANGELES: Hewlett-Packard Co. has filed suit against Gateway Inc., charging its smaller rival with violating a range of patents on notebook, desktop and data-serving computers.

The lawsuit, which was filed after licensing talks between the two sides broke down, signals a tougher line by HP, which has made it a priority to extract more value from its patent holdings, including in areas such as personal computers.

Hewlett-Packard, the No. 1 personal computer maker based in Palo Alto, California, is seeking damages related to the alleged infringement of six patents granted from 1990 to 2003, according to a lawsuit filed on Wednesday in the U.S. District Court for the Southern District of California.

Poway, California-based Gateway, said it was confident of its position and would defend itself vigorously in court.

"The fact is that both companies are in possession of significant patent rights in the area of computer technology," said Bob Sherbin, a spokesman for Gateway. "It's premature for them not to take this into consideration before proceeding for a lawsuit."

Hewlett-Packard spokesman Dave Berman said the company turned to the courts only after talks with Gateway broke down and Gateway closed its acquisition of privately held eMachines, which specializes in PCs that cost $500 or less.

The lawsuit asks for the court to award three times the damages claimed by HP, charging that Gateway had been "reckless, willful and deliberate" in its actions.

The two sides had already been discussing licensing agreements between Gateway and Compaq, which was acquired by Hewlett-Packard in 2002.

Joe Beyers, HP's vice president for intellectual property licensing, said the patents in question cover such areas as power management, password security and cursor movements on a computer screen.

HP's board has made it a priority for the company to gain more revenue from its library of patents, establishing its licensing group in January 2003.

Beyers said HP would prefer to strike a deal with Gateway and other vendors and would only resort to the courts as a last resort. "It's not our intention to lead with litigation," he said.

© Reuters