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January 15, 2007

Sun Division Settles with Tech Repair Company

This item was sent in by Geri Dreiling.  Thank you Geri.  It involves a a David and Goliath situation where StorageTek, a division of Sun Microsystems, sued Custom Hardware Engineering and Consulting, Inc.  CHE repaired tape libraries manufactured by StorageTek.  These tape libraries functioned via the use of robotic arms swapping tapes in and out or readers for customers, including major companies and government agencies.

StorageTek sued CHE over patent and copyright claims, apparently not caring for the idea that another company garnered a sizable amount of repair work on their products.  CHE counter sued on antitrust grounds.  The federal court in Boston initially granted StorageTek and injunction, though that was overturned by the Court of Appeals.  The trial was in the fall of 2006 and was settled by StorageTek with a likely large but confidential payment to CHE.  The article about the case in the St. Louis Business Journal starts off with the words "Sometimes the little guy does win."  Indeed, sometimes they do.

Only the 2003 District Court opinion (not reported) is available in Westlaw.  For those interested in a copy, the citation is 2003 WL23096961.

January 15, 2007 | Permalink

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