Aptix demands 'public domain' status for Quickturn patents

Electronic News, Nov 11, 1996 by Judy Erkanet

Aptix Corp. pulled Quickturn Design Systems, Inc. into court, demanding that all of Quickturn's 14-plus acquired emulation technology patents be "dedicated to the public."

The antitrust violation complaint was filed in the U.S. District Court here, and alleges Quickturn has monopoly power in the hardware emulation market.

The lawsuit was said by some to be an offensive move, defending against Quickturn's assertions that Aptix' products infringe Quickturn's patents.

"Aptix is accusing Quickturn of monopolistic practice, implying control of a market," said Raymond K. Ostby, VP, finance and administration, and CFO at Quickturn. "There is a $350 million design verification technology market out there with thousands of technological alternatives, besides other emulators being sold by Mentor (Graphics), Synopsys and IKOS. We don't monopolize this market and are bewildered by these charges, to say the least."

Aptix said Quickturn monopolizes more than 80 percent of the emulation market, giving it the power to set prices and elbow out competitors, because of Quickturn's acquisitions and other anticompetitive acts.

The filing requests an order from the court requiring all patents acquired by Quickturn be made available to the public for a nominal purchase price and an order prohibiting Quickturn from buying any more emulation-related patents. It also asks the court to prevent Quickturn from enforcing its patents in the marketplace against competitors.

"In this Wild West era of EDA, anyone entering the corral should have to turn their lawyers in to the sheriff," said Gary Smith, principal electronic design automation (EDA) analyst at Dataquest.

"This was a preemptive strike by Aptix, which thought Quickturn was about to sue it."

Further allegations were made that, by buying patents and other competitive assets, Quickturn was ensuring its continued monopoly to exclude existing and bar new competition.

"Quickturn has informed and continues to inform potential customers that its patents cover all possible hardware emulation systems, that Quickturn does not license its patents, and that potential customers will risk losing both a supply and of, and support for, hardware emulation systems if those customers select a competitor's product," alleges Aptix in its court filing.

The concentrated hardware emulation market was said in the filing to include Quickturn; Integrated Circuit Applications Ltd. (InCA), now owned by Zycad Corp.; PiE Design Systems, Inc. (PiE), acquired by Quickturn in 1993; Meta Systems, acquired by Mentor Graphics this year; and Aptix. Although Synopsys, after acquiring Arkos in June, 1995, and IKOS Systems, which acquired Virtual Machine Works, Inc. earlier this year, are ready to enter the market, Aptix complained little of potential competition there.

Aptix had yet to assess total damages, but put the end figure at not less than $5 million.

Mr. Smith saw some similarities between this legal skirmish and Quickturn's patent infringement suit against Mentor with the International Trade Commission (EN, July 15; Aug. 12).

Amr Mohsen, chairman, president and CEO of Aptix, did not wish to comment on the lawsuit.