NEW YORK (CNNfn) - Xerox Corp. gained a victory Thursday in its legal battle against rival copier maker Hewlett Packard Co. as a federal judge ordered HP to turn over thousands of computer chips Xerox had previously purchased.
Xerox (XRX) had purchased the chips containing Hewlett Packard 's (HWP) TrueRes technology for production of the Xerox DocuPrint NC60 color laser printer.
HP sued Xerox in June, claiming the company had breached its licensing agreement and refused to sell additional chips to Xerox.
Thursday, however, a U.S. District judge in Kansas ordered HP to turn the chips over to Xerox.
"This is a victory for the dealers and resellers who want to sell this Xerox product, and for the thousands of customers who increasingly turn to Xerox quality and innovation for their office-based color printing," said Nancy K.M. Rees, vice president and general manager, Xerox Workgroup Products Business Unit. "It is clear HP felt threatened by Xerox and tried to use the courts -- unsuccessfully -- to eliminate its most serious competitive challenge."
The original lawsuit, filed in Boise, Idaho, continues, as well as four other patent-infringement cases between the two companies.
Xerox shares fell 2-3/16 to 44-7/16 in afternoon trade. HP shares plunged 5-1/2 to 103-7/8.