Intel wins Intergraph Antitrust case

Intel has won the antitrust lawsuit Intergraph of Alabama had filed against the chipmaker for allegedly forcing it to hand over patents in return to access to information in future Intel microprocessors. In a 2-0 ruling, a Federal Appeals court said Intel "probably didn't violate U.S. antitrust laws" when it withheld the advance product information.

Despite the victory, Intel remains under investigation by the Federal Trade Commission on other antitrust issues. Intel officials said they were pleased with the court ruling. "We are gratified they agreed with our arguments about some of the fundamental legal issues involved in this case,'' said chief spokesman Chuck Mulloy. In ruling, U.S. Circuit Judge Pauline Newman said the Appeals Court couldn't justify the "dramatic remedy'' of requiring Intel to provide its proprietary information to another company. "Intergraph has not shown a substantial likelihood of success in establishing that Intel violated the antitrust laws in its actions with respect to Intergraph,'' Newman wrote.

Newman rejected a variety of legal theories pressed by Intergraph, including allegations that Intel illegally monopolized the market for microprocessors. She said Intergraph cannot that claim, even if it were true, because the company doesn't compete against Intel in the microprocessor market. "Intel's conduct with respect to Intergraph does not constitute the offense of monopolization or the threat thereof in any market relevant to competition with Intergraph."

The court also rejected Intergraph's contention that advance information about Intel's chips was an "essential facility'' that the Santa Clara, California chipmaker was obliged to share with competitors. Intergraph provided no support for its charge that Intel's action in withholding `strategic customer' benefits from Intergraph was for the purpose of enhancing Intel's competitive position,'' Newman wrote. Intel withheld the advance chip information from Intergraph after the company asserted patent claims against it. Intel has not decided whether it will continue to supply the chip technology data to Intergraph or exercise its right to withhold the information.

The Appeals Court ruling overturns a Federal District Court ruling issued last year in which Intel was a ruled "a monopolist'' with a legal duty to make its products and intellectual property available to other companies.