Apple Computer, Digital Research Reach Settlement

Dow Jones News Service

September 30, 1985

CUPERTINO CALIF. -- APPLE COMPUTER AND DIGITAL RESEARCH INC. SAID THAT DIGITAL RESEARCH WILL TAKE IMMEDIATE MEASURES TO MAKE CHANGES TO ITS GEM COMPUTER PROGRAMS TO AVOID APPLE'S CLAIMS THAT THE PROGRAMS VIOLATE APPLE'S COPYRIGHTS.

AS PART OF A COMPROMISE AND SETTLEMENT DIGITAL RESEARCH HAS AGREED TO PAY APPLE AN UNDISCLOSED AMOUNT AND TO WORK ON APPLE SOFTWARE DEVELOPMENT PROJECTS BUT DENIES ANY INFRINGEMENT OF ANY APPLE RIGHTS. DIGITAL RESEARCH AND APPLE HAVE FURTHER AGREED TO ENGAGE IN FUTURE SOFTWARE DEVELOPMENTS.

DIGITAL RESEARCH AGREED WITH APPLE THAT IT WAS BENEFICIAL TO SUBSTANTIALLY DIFFERENTIATE DIGITAL RESEARCH'S PRODUCTS AND AVOID ANY POSSIBILITY OF INFRINGEMENT OF APPLE'S COPYRIGHTS.

DIGITAL RESEARCH ALSO AGREED TO ALTER THE STYLE AND FORMAT OF ITS ADVERTISING AND NOT TO ENGAGE IN COMPARATIVE ADVERTISING WITH APPLE PRODUCTS. DIGITAL RESEARCH HAS AGREED TO DISCLAIM ANY GEM PROGRAM COMPATIBILITY WITH APPLE PRODUCTS AND TO STATE THAT GEM PROGRAMS AND APPLE PROGRAMS DO NOT PERFORM IN THE SAME MANNER.

DIGITAL RESEARCH AGREED TO PRODUCE NEW VERSIONS OF GEM DESIGNED TO BE SUBSTANTIALLY DIFFERENT FROM APPLE'S MACINTOSH PERSONAL COMPUTER IN BOTH SCREEN APPEARANCE AND OPERATION. THESE CHANGES ARE BEING REVIEWED BY APPLE TO INSURE THEY SATISFY APPLE'S REQUIREMENT THAT GEM PROGRAMS NO LONGER APPEAR TO BE SUBSTANTIALLY SIMILAR TO APPLE'S PROGRAMS.

WHEN THE NEW VERSIONS ARE MADE AVAILABLE TO DIGITAL RESEARCH'S CUSTOMERS THE OLDER VERSIONS WILL NO LONGER BE MARKETED. THE CURRENT GEM PROGRAMS WILL OPERATE IN THE NEW GEM ENVIRONMENT.