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Computer peripherals industry

Hayes and Rockwell Resolve Legal Disputes through Out-of-Court Settlement

Strategic Insights

— 1 min read

Hayes Microcomputer Products, Inc. and Rockwell International, Inc. have put their legal disputes behind them, allowing Hayes to focus on its planned merger with Boca Research, Inc. and protecting customers who utilize Hayes' patented technology. The companies have reached a mutually satisfactory out-of-court settlement, confirming the validity of Hayes' "Heatherington 302 Patent" and ensuring uninterrupted supply of modem chips and chip sets to Hayes. This agreement is expected to be approved by the U.S. Bankruptcy Court in the near term, paving the way for a long-term business relationship between the two companies.

Key Takeaways:

  • The out-of-court settlement between Hayes Microcomputer Products, Inc. and Rockwell International, Inc. has resolved all legal disputes, allowing Hayes to move forward with its planned merger with Boca Research, Inc.
  • The settlement confirms the validity of Hayes' "Heatherington 302 Patent" and protects customers who license that technology through Rockwell.
  • The supply of modem chips and chip sets to Hayes will continue uninterrupted, as indicated by attorneys for both companies.
  • The companies have reestablished a strong working relationship, which is expected to lead to the development of new technologies enhancing the overall communications marketplace.
  • Dennis C. Hayes, President and Chairman of Hayes Microcomputer Products, Inc., stated that the settlement allows the company to avoid further litigation that might have delayed its emergence from Chapter 11.
  • Dwight W. Decker, President, Telecommunications, Rockwell International, expressed enthusiasm for a long-term business relationship with Hayes, highlighting the company's significance as a Rockwell customer.

Statistics:

  • Rockwell International, Inc. has annual worldwide sales of nearly $13 billion.
  • Rockwell Telecommunications, based in Newport Beach, California, includes two principal businesses: the Digital Communications Division (DCD) and the Microelectronics Technology Center (MTC).
  • The DCD is the worldwide market leader in fax and data modem chip sets.
  • MTC is a leading supplier of gallium arsenide technology for commercial communications applications.
  • Hayes Microcomputer Products, Inc. distributes its products through a global network of authorized distributors, dealers, mass merchants, VARs, system integrators, and original equipment manufacturers.

Sources:

  • PRNewswire, July 14, 1995
  • Rockwell International, Inc.,
  • Hayes Microcomputer Products, Inc.

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