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Intel Corp. lost its second patent battle against Intergraph Corp. when a Texas federal court ruled that Intel’s Itanium microprocessors infringe two Intergraph patents. But the stakes weren’t as high as they were in the previous dispute. That’s because attorneys hammered out an unusual settlement in the first case that limited the damage award to $150 million in the second case, with an additional $100 million tacked on if Intel loses an appeal. “I’m not aware of any case that proceeded this way,” said Intergraph attorney George Schwab, a partner at Townsend and Townsend and Crew in San Francisco. “The normal approach is not to have preset remedies.” Intel spokesman Chuck Mulloy said the company will probably file a motion for reconsideration of the judge’s decision. If that is denied, he said Intel plans to appeal. Intergraph’s first patent infringement suit against Intel, heard before an Alabama federal court, settled in April when Intel agreed to pay $300 million in damages. The settlement also put a liquidated cap on total damages in the case before the U.S. District Court of the Eastern District of Texas. The two suits involved separate sets of patents. In the Alabama case Intergraph claimed Intel’s Pentium microprocessors infringed its so-called Clipper chip patents. Mulloy said Intergraph was seeking upwards of $2 billion in damages. In the Texas case the company claimed Intel’s new Itanium processors infringed its patents for executing individual computer instructions in parallel. Intergraph, once a leading manufacturer of computer work stations, sold microprocessors until about 1993 when it opted to use Intel’s microprocessors. The Huntsville, Ala.-based company now makes mapping and design software. In addition to Schwab, Intergraph’s trial team included Townsend associates R. Scott Wales and Gregory Bishop, along with partners from three Texas firms. They were Franklin Jones Jr. of Marshall’s Jones and Jones; Otis Carroll of Tyler-based Ireland, Carroll & Kelley; and S. Calvin Capshaw III of Austin-based Brown McCarroll. Santa Clara, Calif.’s Intel was represented by Fish & Richardson partners Ruffin Cordell and Joseph Colaianni Jr. in the Washington, D.C., office, and Thomas Melsheimer in the firm’s Dallas office. The team also included Sam Baxter, a partner at Dallas-based McKool Smith.

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