Life Is Short, Litigation Is Long - Varian Associates legal battle with Applied Materials continues - Company Business and Marketing

Electronic News, August 31, 1998

Varian Associates got out of the physical vapor deposition (PVD) equipment business more than a year ago, but its legal battle over the PVD market and PVD technology with Applied Materials continues. Varian kept responsibility for twin complaints against Applied, for alleged patent infringement and antitrust violations, after selling its Thin Film Systems division in 1997 to Novellus Systems -- which has its own history of litigation with Applied.

The Federal Trade Commission reportedly took an interest in Varian's antitrust allegations against Applied, with investigators asking for a copy of the complaint, but nothing has been heard about that inquiry in months. Meanwhile, the Varian complaints are in discovery, with trials some time off. With Varian's Semiconductor Equipment business being spun off into a new public company next year (see story, page 29), it remains to be seen whether the old Varian Associates or the new equipment venture will keep paying the legal fees on these cases.