PC giant Hewlett-Packard has sued Taiwanese PC manufacturer Acer Inc. for infringement of five patents. The patents cover several proprietary technologies, including power management and clock switching. H-P's suit, filed yesterday in Texas, aims to ban Acer from selling certain "desktops, notebooks, media centers and related products for home and business use" in the U.S. The company will also be seeking cash compensation. "This action was necessary because HP believes Acer has been selling computer products that use HP's patented technologies without permission," the company said in a statement. "H-P respects the intellectual property rights of others and expects the same treatment in return." In Q4 2006, H-P held a world-leading 18.1% share of the global PC market to Acer's fourth-place, 7.1% share.
Sources: MarketWatch, Bloomberg
Commentary: Hewlett-Packard: Back in the Game • The Decline of the PC: Computers No Longer a Growth Industry • Report: Gateway May Be Acer Target - Shares Climb
Stocks/ETFs to watch: Hewlett-Packard Co. (HPQ), Acer Inc. [TPE:2353]. Competitors: Dell Inc. (DELL), International Business Machines (IBM). ETFs: Internet Architecture HOLDRs (IAH), Vanguard Information Technology ETF (VGT), iShares S&P Global Technology (IXN)
Conference call transcripts: Hewlett-Packard F1Q07 (Qtr End 1/31/07)
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