Path: utzoo!news-server.csri.toronto.edu!cs.utexas.edu!uunet!hayes!tnixon From: tnixon@hayes.uucp Newsgroups: comp.dcom.modems Subject: Re: Hayes Microcomputer lawsuit??? Message-ID: <3823.27d23b2f@hayes.uucp> Date: 4 Mar 91 12:18:55 GMT References: <1510@public.BTR.COM> Organization: Hayes Microcomputer Products, Norcross, GA Lines: 61 In article <1510@public.BTR.COM>, cec@public.BTR.COM (Cerafin E. Castillo cec@btr.com) writes: > I recently heard that Hayes Microcomputer was in the midst of a lawsuit > in regards to technology it (Hayes) develops, sells, or licenses. I did > not catch any specifics since it was mentioned on a stock market report > and technical or company comments were not made known. > > Can anyone enlighten me on this issue? Toby, what is the company line? Of course, I have much more detail available here than you could possibly be interested in, but in a nutshell: In 1985, Hayes was granted U.S. Patent 4,549,302 entitled "Modem with Improved Escape Sequence", which covers modems which use a guard time in conjunction with a character sequence to move from online data state to command state. Most modems that claim Hayes compatibility perform such a function and make use of the patented technology. In 1986, Hayes began efforts to enforce the patent, establishing a licensing program and contacting over 170 modem manufacturers offering to license the patent. Many companies subsequently licensed the patent, and continue to do so today. Back in 1987, however, several companies brought suit against Hayes, charging an attempt to monopolize the modem industry. Hayes sued these companies for willful patent infringement. The monopolization claim was subsequently thrown out in summary judgement (it's inconceivable to me how anybody could look at the modem market and even begin to think that Hayes has a monopoly!), and the patent infringement case continued. In January of 1991, a jury trial was held in US District Court in San Francisco. The Heatherington '302 patent was found to be valid, and Everex, Omnitel, and Ven-Tel were found to have willfully infringed the patent. The total amount of damages awarded by the jury was approximately $3.5 million. Because of the willful infringement, the judge may treble these damages and also require the defendants to pay Hayes' litigation costs and interest back to when the companies were notified of the patent; a hearing on this is scheduled for April 5th. Prometheus was also a defendant, but they settled on the eve of the trial and are now a licensee. USRobotics was also a defendant at one point, but they settled some time ago and entered into a broad cross-license with Hayes at that time. A similar patent infringement trial is currently pending against Multi-Tech, and Hayes intends to actively work to enforce its intellectual property rights against other infringers. I'll try to answer any other questions you might have, but am constrained to what has been mentioned in official company press releases since the matter is still before the courts. -- Toby -- Toby Nixon, Principal Engineer | Voice +1-404-840-9200 Telex 151243420 Hayes Microcomputer Products Inc. | Fax +1-404-447-0178 CIS 70271,404 P.O. Box 105203 | UUCP uunet!hayes!tnixon AT&T !tnixon Atlanta, Georgia 30348 USA | Internet hayes!tnixon@uunet.uu.net