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Tuesday, Jul. 14, 1998

Intel denies tactics against rivals were illegal

FTC's antitrust lawsuit alleges abuse of market influence

By TED BRIDIS
Associated Press

   WASHINGTON -- Intel Corp. fired back Monday against the Federal Trade Commission's antitrust case, describing the company's hard-hitting tactics against other high-tech rivals as ``reasonable, measured steps'' to protect its business.
   Intel, whose computer chips run about 80 percent of the world's computers, denied key allegations in the FTC's lawsuit that it abused its market influence to freeze out and punish competitors.
   ``Intel has an absolute right to refuse to license or share its intellectual property, including confidential information,'' the company said in court papers.
   The FTC, which sued Intel last month, accused the company of denying three of its competitors access to important technical information about upcoming Intel computer chips. It said Intel sought to punish them for refusing to license key patents on Intel's terms.
   ``In none of these cases did Intel deny anyone a supply of microprocessors or any other product,'' the company said. ``Intel's actions did not and could not harm competition in any relevant market.''
   The FTC did not allege that Intel actually denied any company a supply of computer chips but that it threatened to cut off that supply.
   In its response Monday, Intel said the case ``is not an appropriate matter for action by the FTC'' because it involves intellectual property disputes between Intel and three other major high-tech companies -- Digital Equipment Corp., Intergraph Corp. and Compaq Computer Corp.
   The company described its disputes with those companies as ``a matter of private controversy (that) does not tend to adversely affect the public interest.''
   Intel has complained that the FTC is pursuing it for actions against its customers. Some legal experts are doubtful that a judge could extend antitrust law, which protects competitors, to cover an allegation that a dominant company was unwilling to deal with its customers.
   The antitrust case against Intel was filed shortly after the Justice Department sued Microsoft Corp. Together with Microsoft, Intel wields enormous influence over the computer industry.
   The antitrust trial was originally scheduled to begin next Jan. 5 but has since been moved to Jan. 12.

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