[misc.headlines] Xerox sues Apple!!!

eickmeye@girtab.usc.edu (Biff Henderson) (12/16/89)

The following article is from the Los Angeles Times, Friday, 
December 15, 1989, page D3.

Xerox Sues Apple Over Graphics Software

by Carla Lazzareschi
Times Staff Writer

     Xerox slapped Apple Computer with a $150-million lawsuit on 
Thursday, contending that Apple is illegally using the software 
that created the revolutionary graphics display on its highly 
popular Macintosh personal computer.

     The suit, filed late Thursday in federal court in San 
Francisco, is a bizarre turn in an already twisted tale 
surrounding the visual display currently used in Apple's 
Macintosh models.  The display resembles a desk top and allows a 
user to manipulate data and issue instructions by using a set of 
pictures, or "icons."

     The Macintosh display, which has become an industry 
standard, is a key reason for the machine's popularity since its 
introduction in early 1984.  Last year, Apple sued two computer 
industry heavyweights, Microsoft and Hewlett-Packard, for 
allegedly infringing on its copyrighted display.

     However, Xerox claims in its suit that the Macintosh display 
"stems from work originally done by Xerox" and has been used by 
Apple without Xerox permission.  The suit noted that the display 
was first used by Apple in its now discontinued Lisa model 
introduced in 1982, as well as in the Macintosh.

     Xerox said it has held a copyright on the display, which it 
first introduced on its now discontinued Star computer system, 
since 1981.

     A Xerox spokesman said the suit was filed now because recent 
changes in software protection and intellectual property laws 
make it easier to assert its position.  He declined to specify 
those changes.

     An Apple spokeswoman said the company believes that the suit 
is without merit and that Xerox is attempting to assert its right 
to copyright an idea, rather than merely an expression of an 
idea.

     The spokeswoman said Apple has long acknowledged that its 
display was inspired by work done by others in the computer 
industry.  But, she said, Apple claims that the display is its 
own through its investment of "time, people and effort" to create 
the software.

     Xerox said in the suit that Apple's use of the display and 
its licensing of it to other computer companies has allowed Apple 
to "unjustly" receive royalties and fees of more than $100
million.  The suit also asks for at least another $50 million
because Apple's actions constitute "unfair competition and unfair 
business practices."

     Xerox Chairman and Chief Executive David T. Kearns said 
efforts to reach an amicable settlement, including a proposal for 
Apple to license the involved software from Xerox, were rebuffed 
after Xerox approached Apple last week with a proposal.