Texas Instruments Sues Compaq Computer Over Trade Secrets

Dow Jones News Service

February 11, 1983

HOUSTON -- TEXAS INSTRUMENTS INC. FILED SUIT IN FEDERAL DISTRICT COURT HERE AGAINST COMPAQ COMPUTER CORP ALLEGING THAT COMPAQ MISAPPROPRIATED TRADE SECRETS INFRINGED PATENTS AND RAIDED TEXAS INSTRUMENTS FOR KEY EMPLOYEES.

THE SUIT NAMED AS DEFENDANTS 10 FORMER TEXAS INSTRUMENTS EMPLOYEES WHO ARE NOW WITH COMPAQ AS WELL AS COMPAQ A HOUSTON-BASED SMALL- COMPUTER MAKER. THE SUIT ALLEGES THAT COMPAQ USED TEXAS INSTRUMENTS TRADE SECRETS TO AID IN THE PRODUCTION OF COMPUTER SYSTEMS SIMILAR TO TEXAS INSTRUMENTS PRODUCTS COMPAQ SAID.

TEXAS INSTRUMENTS OFFICIALS DECLINED TO COMMENT ON THE SUIT. AS REPORTED LAST MONTH TEXAS INSTRUMENTS INTRODUCED A SMALL COMPUTER SIMILAR IN MANY RESPECTS TO INTERNATIONAL BUSINESS MACHINES CORP.'S POPULAR PERSONAL COMPUTER. COMPAQ'S CHIEF PRODUCT IS A SMALL COMPUTER THAT ALSO IS SIMILAR TO THE IBM PERSONAL COMPUTER.

COMPAQ SAID THE SUIT RESEMBLES A SUIT FILED IN A TEXAS STATE COURT LAST APRIL BY TEXAS INSTRUMENTS AGAINST COMPAQ AND THAT COMPAQ ALREADY FURNISHED 'THOUSANDS OF DOCUMENTS TO TEXAS INSTRUMENTS' RELATING TO THE CHARGES. COMPAQ SAID THE TEXAS INSTRUMENTS SUITS' ALLEGATIONS 'ARE TOTALLY GROUNDLESS AND WILL HAVE NO EFFECT ON COMPAQ'S PRODUCTION AND SHIPMENT' OF COMPUTERS.

AN OUTSIDE ATTORNEY REPRESENTING TEXAS INSTRUMENTS SAID THE DALLAS-BASED ELECTRONICS CONCERN ASKED IN ITS SUIT FOR AN INJUNCTION AGAINST ALLEGED INFRINGEMENT OF PATENTS BY COMPAQ AND DAMAGES IN EXCESS OF $1 MILLION.