Alcatel-Lucent settles patent suit with Acer's Gateway

Alcatel-Lucent SA, the world's largest telecommunications equipment maker, settled patent infringement claims against Acer Inc's Gateway yesterday that were part of a larger dispute with Microsoft Corp and Dell Inc.

Financial terms of the agreement were not disclosed, Alcatel-Lucent spokeswoman Mary Ward said. A trial against Microsoft, the world's largest software maker, and Dell was scheduled to begin next week in federal court in San Diego.

"We have signed an agreement with Gateway," Ward said in a telephone interview. "We are pleased to be able to put this issue between our two companies behind us."

Alcatel-Lucent claimed computers made by Dell and Gateway, and containing Microsoft's operating system, infringed five patents, including ones for video signals and displays as well as operating a computer with a stylus. Microsoft said in a Jan. 14 court filing that Alcatel-Lucent demanded a total of more than US$3.49 billion from the three companies.

Alcatel-Lucent was seeking as much as US$309.6 million from Gateway and US$119.8 million more from Gateway and Microsoft together, Microsoft said in the filing. The amount Paris-based Alcatel-Lucent is seeking has since changed as the trial neared.

Officials with Irvine, California-based Gateway and Taipei-based Acer did not immediately return messages seeking comment.

Lucent Technologies Inc, which Alcatel acquired in 2006, sued Dell and Gateway in 2002. Microsoft in turn sued Lucent, after the computer makers said Microsoft would have to reimburse them for any damages they might have to pay in the suits. The cases were combined and then split by the different technologies.

In the first trial with Redmond, Washington-based Microsoft, a jury awarded Alcatel-Lucent US$1.52 billion. The judge later threw out the verdict and the case is now on appeal.

Alcatel-Lucent American depositary receipts, each representing one ordinary share, fell US$0.12 to US$6.07 on the New York Stock Exchange.