Apple sued over Newton drop
Hardware vendor Harris, which licensed the Newton OS and other technology, seeks $17.2 million for alleged breach of contract.
Hardware vendor Harris Corporation filed suit in the Superior Court of Santa Clara, California, asking for at least $17,200,000 in restitution and damages for the alleged breach of contract.
Harris' negotiations to sell its product to Ameritech and Telecom Italia fell through as a direct result of Apple's decision to back away from the platform. Apple's course of action breached the licensing agreement between the two companies, according to the complaint.
This type of bad news is unusual for Apple of late, which is currently coasting on the success of its recent earning announcement and strong sales of its iMac. Apple's current momentum may not be derailed so easily, analysts say.
"It would be somewhat surprising if it was an enforceable agreement," said Daniel Kunstler, an analyst at JP Morgan, who doubted the suit would affect Apple's progress over the last year. "It does not strike me as a slam dunk for the plaintiff."
Apple declined to comment on the merits of the suit or the specifics of the licensing arrangement.