SGI, Back From Dead, Decides To Use Patent Litigation As New Business Strategy

from the losers-litigate dept

What were we just saying about the trend of companies who failed in the marketplace to resort to patent infringement lawsuits as a last gasp effort to stay alive? When SGI filed for Chapter 11 bankruptcy back in May, many didn't give the company much of a chance of amounting to much if it could even reorganize and come out of bankruptcy. Well, last week, the company triumphantly emerged from bankruptcy, claiming that it was "lean and mean." The company claimed it had new management, new business models and a new strategy. Of course, what they didn't mention was part of that strategy was to sue others for patent infringement. It certainly didn't take the "new" SGI long to send its lawyers after ATI for apparently infringing on a patent. Perhaps SGI has a real business strategy to become relevant again -- but to kick things off with a patent infringement lawsuit suggests that they're not convinced that actually competing with their products in the market place is going to take them very far.

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  1. identicon
    Joe Smith, 25 Oct 2006 @ 12:22pm

    Floating point

    Read the patent that is linked in the story which is linked above and your worst thoughts about the state of the patent system will be confirmed.

    It seems pretty obvious that the timing of the lawsuit is tied to the pending ATI/AMD merger in the hope that the threat of the lawsuit will extract a quick settlement.

    ATI's challenge in defending this case is going to be to get a judge and jury capable of understanding what floating point arithmetic is and why it gets used.

    If ATI can make it past that (huge) hurdle then SGI is going to get a spanking for bringing this law suit.

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