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Tuesday, August 29, 2000
3dfx Replies to NVIDIA Challenge
3:48 PM | Michael Eilers | Comment on this story

In response to the lawsuit filed yesterday by chipmaker rival NVIDIA, graphics card maker 3dfx has issued a statement in response. As expected in a legal duel of this sort, 3dfx denies the charges, and finds an interesting twist on the situation -- apparently they believe this suit is an attempt to derail a previous suit 3dfx filed against NVIDIA. Those lawyers don't get $200 an hour for twiddling their thumbs.

In any case, this is simply another move on the chess board. As we have noted, these things take months -- perhaps years -- to resolve. The fact that NVIDIA has been unsuccessful in their previous suit seems to cast doubt upon this stratagem as a way to force 3dfx out of the field.

Here is the 3dfx response:

3dfx Interactive Inc. (NASDAQ:TDFX) stated today that it would vigorously defend against claims of patent infringement made by NVIDIA Corporation in a lawsuit filed August 28, 2000. The lawsuit was filed in the United States District Court for the Northern District of California and concerns five NVIDIA patents. NVIDIA seeks an injunction restraining the Company from manufacturing, selling or importing certain of its products, as well as monetary damages.

The Company previously filed suit against NVIDIA on September 21, 1998 alleging patent infringement of patents owned by the Company relating to NVIDIA's use of multi-texturing technology. Several hearings have been held with respect to this matter and a decision is expected shortly as to claim interpretation regarding those patents.

"NVIDIA's filing of a suit is clearly an attempt to force a settlement of our existing patent infringement lawsuit against NVIDIA, and we believe demonstrates a lack of confidence in their current defense," said Alex Leupp, president and CEO of 3dfx Interactive. "We anticipate receiving rulings as to claim interpretation issues in our existing lawsuit shortly, and are committed to protecting our intellectual property and maximizing the financial benefits of our technology for our shareholders. We regret that NVIDIA feels compelled to resort to these kinds of tactics as a defense of the pending litigation. 3dfx intends to vigorously defend itself against this litigation."

We have no doubts about that. We're sure there will me more developments shortly. Meanwhile, feel free to post your comments on this issue in our forums and on the comments thread of this article.

NVIDIA Sues 3dfx
3dfx Response to NVIDIA at Blue's News

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