Apple Computer Inc is to sue what remains of Exponential Technology Inc in an effort to reverse the now dormant chip company’s sale of key patents to graphics chip maker S3 Inc (CI No 3,341). Exponential sold the patents to S3 last year, though the details only emerged in February of this year. It used the proceeds to settle its debts, and now appears to exist only as a shell company. Apple’s suit, filed in Delaware Chancery Court, seeks to halt the disposal of the 45 or so patents, which were auctioned off to the highest bidder last year (CI No 3,217). Intel Corp was thought to have been amongst the bidders, along with Digital Equipment Corp, Advanced Micro Devices Inc and Cyrix Corp. Apple’s suit appears to be a response to the $500m suit San Jose, California-based Exponential took out against Apple last September, claiming breach of contract (CI No 3,248). Exponential, which had been developing a high performance PowerPC chip, claimed it was forced out of business due to Apple’s restrictive licensing practices. Five individuals are named in Apple’s suit, including chairman of the board Gordon Campbell, co-founder and chief executive officer George Taylor and board member Eddie Kawamura. The others mentioned are Donald Schriner and Paul Dali. Santa Clara-based S3 said it was aware that it had been named in the suit, but hadn’t enough information to know how it would be affected. It said that the matter was currently between Exponential and Apple. Exponential maintains offices in San Jose. á
