Packard Bell sues CTX
The firm and its subsidiary Vantus Technologies file a lawsuit against CTX International for alleged patent infringement.
The lawsuit, filed in the U.S. District Court for the Central District of California, seeks to prevent CTX from making, selling, or importing its desktop and portable computers, in addition to "substantial monetary damages," Packard Bell said.
CTX could not be reached for comment.
CTX International is a subsidiary of Chuntex Electronics, a publicly traded company in Taiwan. Chuntex says it is one of the top ten monitor manufacturers in the world. The company, although not widely known, offers inexpensive PCs that are popular items at retailers such as Circuit City and CompUSA--areas where it competes directly against Packard Bell.
Packard Bell claims computers manufactured by CTX infringe on five separate patented technologies invented either at Packard Bell or Vantus Technologies, a holding company for patents granted to Zenith Data Systems, which is a Packard Bell subsidiary now.
"CTX was (sued) because they recently adopted an aggressive consumer market strategy and are selling systems below the prevailing rates in the marketplace," said Mal Ransom, senior vice president of marketing for Packard Bell NEC, Consumer Division. CTX is able to do this, he says, because they aren't paying the same development costs in regards to licensing technology, and therefore Packard Bell decided to enforce patents it holds.
Some of the patent rights being asserted wouldn't appear to be at the cutting edge of technology--one patent involves putting a notebook into a power saving mode when the lid is closed--but increasingly companies are using their patent portfolios in a variety of ways. Other patents cover an interface for connecting different peripheral devices to the computer through a serial or parallel port--the technology allows a device to be recognized by the computer.
In July, CTX had a 7 percent share of the retail PC space and Packard Bell had between 8 to 10 percent market share, according to Aaron Goldberg, executive vice president of ZD Market Intelligence.