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Dell reaches $50 million settlement with Tulip

NTUsEr   on 08 July 2003 - 10:10 · 3 comments & 585 views

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Dutch PC maker Tulip has withdrawn its patent infringement law suit against Dell following an out-of-court settlement from which the Texan hardware giant emerges as the de facto winner.

The two companies last week agreed to a deal under which Tulip will receive $49.5 million - significantly less than the $17 billion in actual and punitive damages it was originally seeking. Dell will only have to pay $10 million toward that $49.5 million - it's not clear where the rest is coming from; presumably its motherboard suppliers will have to cough up the rest - and is able to say that it didn't infringe Tulip's patent. Dell also gets a non-exclusive licence to the patent at the heart of the case: number 5,594,621, entitled 'Motherboard for a computer of the AT type, and a computer of the AT type comprising such motherboard' and which describes a way to connect PCI and ISA cards to an AT motherboard.

Back in November 2000, Tulip alleged that Dell Optiplex PCs shipped since 1997 incorporated without authorisation technology covered by that patent. The patent was filed in 1995. Cleared on all charges and paying only $10 million - a conclusive victory for Dell, we'd say. That said, Tulip doesn't do to badly out of the settlement: it wins a tidy sum of money - which it describes as "a significant improvement of its financial position"; it lost €7.2 million during fiscal 2002 - and the validity of its patent is ensured for the time being. Dell had not only claimed it did not infringe Tulip's patent but it contested that the patent was invalid and unenforceable.

News source: The Reg


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News source: Patchou's Statement

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(1 reply) #1 Mr. Black on 08 Jul 2003 - 16:31
Dell used to be a good company in my book but I feel they have become another company that just wants your money and doesn't give a damn about supporting you or anything else...their Support Satisfaction scores were WAY down this year compared to last (Source: PC World)

BTW I hate those dumb "Dell Interns" commercials...
#1.1 Jstphish on 08 Jul 2003 - 18:24
I agree, they use to have the best customer satisfaction (this coming from someone who has an older Dell). It seems that they are just apart of the corporate machine now. Although, they do offer alluringly low-priced PC's.
#2 jpcahn on 08 Jul 2003 - 23:05
I can tell you one thing that Dell did to cause their lower satisfaction scores. They were using IBM techs do repair their machines up until about two years ago . Then they decided that IBM was charging too much an hour for their techs so they switched to another company. I won't mention the other company's name but they dropped the ball big time. I think Dell either has already or is working on begging IBM to take them back lol.

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