Texas Instruments Target Of Countersuit In Dispute

The Wall Street Journal

March 25, 1983

HOUSTON -- COMPAQ COMPUTER CORP. FILED A RESPONSE TO AND A COUNTERSUIT AGAINST TEXAS INSTRUMENTS INC., WHICH HAS ALLEGED THAT COMPAQ MISAPPROPRIATED TRADE SECRETS, INFRINGED PATENTS AND RAIDED TEXAS INSTRUMENTS FOR IMPORTANT EMPLOYEES.

COMPAQ IS A CLOSELY HELD COMPANY BASED THAT MAKES A PORTABLE COMPUTER SIMILAR TO INTERNATIONAL BUSINESS MACHINES CORP.'S PERSONAL COMPUTER. TEXAS INSTRUMENTS ALLEGED IN A SUIT FILED IN JANUARY THAT COMPAQ USED TEXAS INSTRUMENTS' TRADE SECRETS TO HELP PRODUCE THE COMPUTER.

A NUMBER OF COMPAQ EMPLOYEES ONCE WORKED FOR TEXAS INSTRUMENTS, AND IN ITS SUIT, TEXAS INSTRUMENTS ALLEGED THAT COMPAQ INDUCED ITS EMPLOYEES TO JOIN IN AN EFFORT TO APPROPRIATE THE DALLAS-BASED CONCERN'S TRADE SECRETS.

IN ITS RESPONSE TO THE SUIT, COMPAQ DENIED THAT IT INFRINGED TEXAS INSTRUMENTS' PATENTS OR LURED TEXAS INSTRUMENTS' EMPLOYEES AWAY IN AN ATTEMPT TO STEAL ITS TRADE SECRETS.

COMPAQ ALSO FILED A COUNTERSUIT ALLEGING THAT THE TEXAS INSTRUMENTS SUIT IS PART OF A SCHEME TO DRIVE COMPAQ OUT OF BUSINESS. COMPAQ CHARGED THAT TEXAS INSTRUMENTS KNEW ITS ALLEGATIONS WERE INVALID WHEN IT FILED THE SUIT.

COMPAQ ASKED FOR MORE THAN $60 MILLION IN DAMAGES IN ITS SUIT AND REQUEST A JURY TRIAL.

TEXAS INSTRUMENTS DECLINED TO COMMENT ON COMPAQ'S COUNTERSUIT.