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Behind every great fortune," Balzac wrote, "there is a crime." That's the contention of the stunning lawsuit filed last week by Digital Equipment Corp. against microchip giant Intel. The great fortune in this case comes courtesy of the Pentium microprocessing chip, which runs 85% of the earth's personal...

Author: /time Magazine | Title: CHIP OFF THE OLD BLOCK? | 5/26/1997 | See Source »

Digital's surprise assault was impeccably timed: the previous week Intel had celebrated the launch of next-generation chip Pentium II. And the day of Digital's suit, microprocessor upstart Cyrix quietly filed its own patent-infringement claim against Intel. Digital followed a day later with full-page ads in...

Author: /time Magazine | Title: CHIP OFF THE OLD BLOCK? | 5/26/1997 | See Source »

But by week's end analysts were asking whether the Digital action was an honest plea for justice or just the bared-fang attack of a cornered and wounded animal. The tottering hardware giant had bet heavily on its $2.5 billion Alpha microprocessor to return it to prosperity. Alpha is...

Author: /time Magazine | Title: CHIP OFF THE OLD BLOCK? | 5/26/1997 | See Source »

Two months ago, rival Hewlett-Packard allied with Microsoft to push the software giant's Windows NT program into corporate servers, the machines that link large computer networks. In 1995 Digital had cut its own Microsoft deal, looking to the burgeoning NT market to fuel its growth. Instead, it is...

Author: /time Magazine | Title: CHIP OFF THE OLD BLOCK? | 5/26/1997 | See Source »

With the ramparts collapsing around him, Digital CEO Robert Palmer must have seen little choice but all-out attack. The lawsuit claims Intel infringed on 10 Digital patents related to Alpha and other chips--though Palmer doesn't claim this piracy occurred during negotiations between the companies in 1990 and...

Author: /time Magazine | Title: CHIP OFF THE OLD BLOCK? | 5/26/1997 | See Source »

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