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Judge rules against Intel
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April 13, 1998: 2:33 p.m. ET
Intergraph wins preliminary injunction in federal antitrust suit
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NEW YORK (CNNfn) - Intergraph Corp. said Monday it has won a preliminary injunction against Intel Corp. as part of its federal lawsuit against the computer chip maker.
Intergraph, which makes computer graphics workstations and software, sued Intel in November for anticompetitive behavior, patent infringement and antitrust violations.
Intergraph said Intel tried to end the companies' multiyear relationship when the chip maker attempted to acquire the rights to Intergraph microprocessor patents at no cost.
Intergraph claimed Intel used "coercive tactics," including withholding vital information and technical support and delaying shipment of various Intergraph products, to obtain these patent rights.
In a statement, Intergraph said a U.S. Federal District Court judge in Alabama ruled that "Intel's refusal to supply advanced CPUs [central processing units] and essential technical information to Intergraph likely violates Section 2 of the Sherman Antitrust Act."
The court also ruled that Intel is "prohibited from terminating Intergraph's rights as a strategic customer in current and future programs."
Chuck Mulloy, an Intel spokesman, said the company was disappointed with the judge's ruling, but that it will have "little practical effect" on the company's operations.
"We never stopped shipping them products during this dispute," Mulloy said. "We stopped shipping them confidential advance product information that was under non-disclosure."
Wade Patterson, Intergraph president and chief executive officer, agreed with Mulloy's assessment. Still, he maintained that those actions amounted to Intel using its dominant market position to coerce Intergraph into signing over its patent rights.
"The significance of this ruling is that it could force Intel to change its business practices," he said. "They feel like they're not breaking the law. They don't realize that their monopoly position puts them in a different situation from other companies."
Intel's Mulloy said the company was considering filing an appeal.
Shares of Intel (INTC) rose 1 to 74-3/4; Intergraph (INGR) shares also climbed 1 to 8-3/4. 
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