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Intel's Merced chip employs a similar design to what is described in theExponential-S3 patent, said Belgard. The Exponential-S3 patents, however,pre-date Intel's Merced's designs, which lays the basis for a claim. Inpatent law, a patent holder does not have to show that another party copied ordeliberately infringed a design. They only need to show priority in time. Intel's interest in the Exponential patents, and the potential leverage thepatents gave S3, has been known for a while. Intel bid on the patents whenExponential auctioned them off earlier this year. S3 won the auction with abid of close to $10 million. Digital, which was locked in a heatedlegal battle with Intel at the time, also submitted bids, sources said.
The exact nature of the potential conflict, however, only came clear whenIntel showed off a block diagram of Merced at the Microprocessor Forum,said Belgard, It was then that the similarities between the Intel designand the Exponential patents, in his mind, became tangible, "When I sawthat, I almost fell off my chair," he said, Neither S3 or Intel could be reached for comment, Other sources, however,have said that the two companies have been negotiating behind the scenes onthe issue, While S3 has not filed a case against Intel, it would not oni mask 01 iphone case be the first forthe company this year, Earlier, S3 filed a patent infringement actionagainst competitor Nvidia..
Interestingly enough, if a case were to be filed against Intel, both cases would seem to fit a similar mold. Both the Nvidia case and a potential Intel case would derive from patents that S3 acquired from third parties a few months before filing suit. The patents at issue in the Nvidia case came from Cirrus Logic. Exponential, meanwhile, sold it patents after itgave up on the idea of producing its own processors. In any event, more suits are a definite possibility from S3. Walt Amaral,CFO for S3, told CNET in May the company was looking for further patentactions with regard to the Cirrus patents. "We are looking at othercompetitors," he said. "We acquired these patents in January. It takes awhile to figure out the details." Nvidia merely happens to be the firstsuit the company has lodged, he added.
Belgard has performed consulting work for S3 before but is not associatedwith any issues regarding the Exponential patents, Intel is an investor in CNET: The Computer Network, publisher of News.com, Patents that S3 acquired from a defunct chipmaker may provide the basis of a claim against the chip giant, Although S3 has primarily been known as agraphics chip vendor, the company may increasingly become associated withpatent litigation, Three patents that oni mask 01 iphone case the company acquired earlier this year in a blindauction from defunct chipmaker Exponential may provide the basis for apatent claim against chip giant Intel,according to a prominent patent analyst..
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