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Digital sues Intel over chips

Published on .

Digital Equipment Corp. sued Intel Corp., alleging the chip giant's Pentium lines copy Digital designs. Digital is seeking undetermined damages and an injunction to halt Intel's sales of the chips; the latter move would effectively shut down the PC industry since Pentium powers most new PCs. Intel denied the charges.

The lawsuit and timing are surprising: Digital is a major buyer of Pentium chips, and it is suing Intel four years after Pentium's introduction. The suit will generate publicity for Digital and its Alpha chips, a fast but comparatively slow-selling chip line that is threatened by Pentium II, Intel's latest model of Pentium.

Copyright May 1997, Crain Communications Inc.

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