Apple Computer Inc filed suit against low-cost PC maker eMachines Inc yesterday, accusing the company of illegally copying the industrial design of the iMac. Filed at the US Federal Court in San Jose, California, the complaint seeks to stop eMachines from distributing computers illegally copying its design, and asks for actual and punitive damages. The suit follows two similar complaints filed on July 1 against Santa Clara-based Future Power Inc and its chief backer Daewoo Telecom Ltd. Emachines’ parent Trigem Computer Inc wasn’t named in the latest suit.
Emachines introduced its first iMac look-alikes earlier this month through Circuit City Stores Inc. The eOne PC incorporates the processor unit and monitor in an all-in-one, translucent blue case, and costs $799, with the option of a $400 rebate for those who buy a three-year subscription to America Online Inc’s Compuserve 2000 Internet service. It uses a 433MHz Celeron chip. Future Power’s E-Power 466MHz Celeron-based systems were launched last month at PC Expo, with a similar all-in-one design and five colors – amethyst, ruby, topaz, emerald, and sapphire – just like the iMac. They were due to ship in September for $799. Both machines are undeniably similar to the IMac, though the eOne boxes use a single color rather the iMac’s duotones, and E-Power has its colors named after jewels rather than fruits.
In an official statement, Apple’s permanently interim CEO Steve Jobs chose almost the exact same words to explain the action as he did for Future Power in July. There is an unlimited number of original designs that eMachines could have created for their computers, but instead they chose to copy Apple’s designs, he said. We’ve invested a lot of money and effort to create and market our award-winning computer designs, and we intend to protect them under the law.
Apple is facing a threat from other iMac imitators from the so- called beige brigade. Gateway Inc has already released an all- in-one design, and Sony Corp has been trying out different colors. Even Intel Corp has been showing off prototypes of re- thought system designs. Pat Gelsinger, VP and general manager of Intel’s Desktop Products Group admitted last February that the appearance of the iMac had acted as a kick up the backside that finally got the PC industry thinking about possibilities beyond the standard beige box (CI No 3,605). Many of the prototypes shown so far, however, use flat panel monitors and don’t resemble the iMac too closely. Such systems are unlikely to be a threat at the lower-end of the market until flat panel monitor prices come down.
EMachines, meanwhile, is also facing a suit from Compaq Computer Corp for 13 alleged patent infringements ranging from passport functions to display features (CI No 3,711). Parent company Trigem accused Compaq of bringing out the suit as an attempt to stave off competition from the low-end of the market.
According to the latest PC Data figures, Compaq was still the top seller in the retail market in June with a 29.1% unit share, followed by Hewlett-Packard Co (24.7%), Apple (11.2%), IBM Corp (9.9%), and Emachines (9.7%). Apple enjoys an average price $500 above the average Wintel PC and nearly twice that of eMachines, and has shipped over 2 million units since the iMac’s introduction on August 15 last year. Emachines says it also expects to ship 2 million units this year.
