FTC launches first lawsuit against Intel

In what is expected to be the first of at least two legal actions againstthe chipmaker, the U.S. Federal Trade Commission (FTC) has sued IntelCorporation for anti-competitive practices. Intel, which owns a monopoly ofthe microprocessor industry, was charged with violating U.S. antitrust lawsbecause it denied customers access to technical information when thosecustomers were involved in disputes with the company. The three customersthat were named in the lawsuit--Digital, Intergraph, and Compaq--were eachcut off from Intel technical information when they separately filed patentlawsuits against the chip giant.

Intel defended itself Monday, saying that it has a right to protect itsintellectual property and that it is "not prudent" to continue doing business with companies that are suing it.

The FTC disagrees.

"If Intel can use its monopoly position in the market for microprocessorsto prevent other firms from enforcing their own patents, other firms will have little incentive to invent new features to challenge Intel's dominance," said William Baer, the director of the FTC's antitrust division. "The case the commission is bringing today seeks to prevent Intelfrom repeating this conduct in the future."