In 1993 Intel was asking chipset manufacturers
to cooperate with them for the introduction of the PCI bus, an invention
of Intel. The chipset manufacturers did cooperate with Intel and PCI was
available from all chipset manufacturers, which is one reason for its fast
success. It didn't take long and all the chipset manufacturers started
to disappear from the market. Now Intel is the largest chipset manufacturer
and is having the power to influence the market with its chipsets very
well.
Over the past two years, intel's
share of the chipset market has jumped to almost 72% (1997) from 27% in
1995, according to Mercury Research.
A very similar thing happened with AGP and video chipset manufacturers. Again
Intel asked video chipset companies to work closely with them for the implementation
of the AGP. The video chip manufacturers hardly have a choice because Intel
is the market leader and you can't afford not to follow it. Now Intel has
made it's own video chip ( i740 ). But the video chip market was too competitive for Intel.
Three companies, which have previously announced
what are known as "core logic chip sets" for computers using the Pentium
II processors, face legal action from the PC chip giant if they try to
market their products.
"The primary motivator
for Intel to move to the P6 bus was the competitive landscape," said Mike
Feibus, principal analyst with semiconductor market watcher Mercury Research
Inc. "The bus is completely proprietary -- no one can use it without Intel's
permission."
"To develop these chip sets
you need access to the (sixth-generation bus design)", "And that is protected
by a combination of patents and trade secrets", "(Aside from cross-licensing,)
we don't intend to license this technology to a third-party," said Intel
spokesman Chuck Malloy.
For Intel, it's simple. PC makers who want to use the Pentium II processor
in their computers must use the P6 bus, and therefore, Intel's chip sets.
This puts publishers at risk if they should
seriously offend Intel. Once the cash starts flowing, it's hard to pull
away. These advertising subsidies, which many large corporations have discovered
can be a control mechanism, are striking at the heart of free enterprise.
Recent revelations about co-op advertising in the music business uncovered
the fact that Sony and others pull lucrative ad co-op dollars away from
any store that sells CDs for a price lower than that fixed by the record
companies. Essentially it's a bribe to fix prices.
Lawsuit maintains Intel infringed Digital patented technology
to enhance performance of Pentium, Pentium Pro and Pentium II microprocessors
...WORCESTER, Mass., May 13, 1997 Digital
Equipment Corporation(NYSE:DEC) has filed a lawsuit in U.S. District Court,
District of Massachusetts, here charging Intel Corporation with willful
infringement of 10 Digital patents in making, using and selling microprocessor
products,
including its Pentium, Pentium Pro and Pentium II microprocessor
families.
The patents were issued by the U.S. Patent andTrademark
Office between 1988 and 1996.
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