Apple Sues San Francisco Canyon Company Over Intellectual Property Theft and Breach of Contract

Strategic Insights -

Apple, the California-based computer manufacturer, has filed a lawsuit against the San Francisco Canyon Company, a small software developer, alleging theft of intellectual property and breach of contract. The dispute revolves around the use of software developed for Apple's Quicktime program, which was allegedly used in video software tools developed for Intel. Apple has obtained court authorization to subpoena evidence from Microsoft and Intel in connection with the suit. The company is seeking an injunction against the licensing, sale, or distribution of the disputed software, as well as unspecified monetary damages.

Key Takeaways:

  • Apple has filed a lawsuit against the San Francisco Canyon Company, accusing it of stealing intellectual property and breaching contracts related to the development of Quicktime.
  • The dispute centers around the use of software developed for Apple's Quicktime program in video software tools developed for Intel.
  • Apple has obtained court authorization to subpoena evidence from Microsoft and Intel in connection with the suit.
  • The company is seeking an injunction against the licensing, sale, or distribution of the disputed software, as well as unspecified monetary damages.
  • Apple has a history of intellectual property disputes, including a $5.5 billion copyright infringement suit against Microsoft and Hewlett-Packard that was later dismissed.
  • The San Francisco Canyon Company's president, Fred Gault, has disputed the allegations, stating that the suit is intended to punish his company for angering Apple's engineers.
  • Apple and Microsoft have a long history of competition and intellectual property disputes, with Apple accusing Microsoft of copying its Windows software from the Macintosh operating system in the 1988 lawsuit.

Statistics:

  • $5.5 billion: The amount of the copyright infringement suit Apple filed against Microsoft and Hewlett-Packard in 1988.
  • 1992 and 1993: The years in which Apple signed contracts with San Francisco Canyon Company to develop Windows-based versions of Quicktime.
  • 1999: The year in which the United States Court of Appeals for the Ninth Circuit refused to reinstate Apple's $5.5 billion copyright infringement suit against Microsoft.
  • 2000: The year in which Apple obtained court authorization to subpoena evidence from Microsoft and Intel in connection with the current lawsuit.

Sources:

  • Apple Computer Inc. vs. San Francisco Canyon Company, Federal District Court, San Jose, CA.
  • The San Jose Mercury News, "Microsoft Among Companies Sued by Apple", January [no date mentioned].
  • United States Court of Appeals for the Ninth Circuit, decision in Apple Computer Inc. vs. Microsoft Corporation and Hewlett-Packard Company, September 1999.
  • Apple Computer, press release, "Apple Files Suit Against San Francisco Canyon Company", December 1999.