Gateway Acquisition Gives Acer More to Fight HP With

By Scott M. Fulton, III | Published November 1, 2007, 11:37 AM

Setting up more guns on its side in its all out brawl against global #1 PC seller Hewlett-Packard, global #3 Acer - now with Gateway under its belt - filed amendments to its countersuit on Tuesday, alleging HP infringed on patents held by Acer. It's a serious battle, as Acer fights to prevent a federal judge from imposing an injunction against the importation of Acer PCs from Taiwan into the US.

Acer completed the transition of Gateway into its portfolio on October 17, so the timing of this countersuit is probably not coincidental. A check of the US Patent and Trademark Office database this morning revealed no fewer than 323 patents were assigned to Gateway, Inc. of Irvine, California. Though the amended lawsuit filing has not yet been made public, so the new patents in question have not been revealed outside of court, Gateway's patent portfolio included chip designs such as digital audio controllers, and practical designs such as a slot for holding a stylus on a portable PC.

Another Gateway patent covers "a method for recovering from a failure of an information handling system." It's described as follows: "Failure of at least one item of software utilized by the information handling system is detected and an application level component of a recovery utility to correct the detected failure is initiated." While it's unknown at present whether this is one of Acer's new weapons, there's no question that HP's depth of involvement in improving the PC system BIOS may make it vulnerable to attack now.

There's no way Acer hasn't thought of using Gateway's portfolio as ammunition, in a battle which goes to the heart of the company's business.

HP fired the first round back in March, alleging among other things that Acer's PC design willfully infringed upon technology HP created back in 1994 for use with the EISA 16-bit bus. Another sore point for HP involves the way system services detect the current screen resolution, probably for displaying BIOS information during the boot sequence.

Acer countersued in July, asserting claims with regard to HP's use of dual-frequency antennas and unlicensed DVD-ROM reader heads. By evening the stakes - at least as much as possible - a defendant is often seeking a solution where the parties resolve out of court to cross-license their patent portfolios to one another perpetually. A DVD-ROM reader head complaint may not have been enough to compensate for a bus signal sequencing complaint, which goes way deeper.

Anyone who may have been wondering what Acer stood to gain by purchasing Gateway, may have just gotten his answer.

Comments

View comments by with a score of at least

Acer is notorious for loading their systems with tons of crapware. My latest Acer purchase had 13% of the main drive loaded with garbage I'll never use. Some of it is impossible to remove. I may have to take it offline.

If you haven't bought one, do yourself a favor, don't.

Score: 0

|

Even with the acquisition of Gateway, I don't think that their products come close to HP. In the past 10 years, HP has put a lot into their products and they have shown that their company is here to stay. Many changes have taken place and they have been in this business for a long time.

If anything, Dell has shown that just because you sell the most products doesn’t mean you are number one. Consumers are not idiots(not all anyways) and they have seen that Gateway has done a poor job with their products over the past 5+ years. Even with their acquisition of e-machines, they weren’t able to save the company.

Good luck to you – Acer! I sure hope you have more than Gateway as your plan in being a top seller of PCs.

Score: 0

|

after selling consumer PCs for about a year i still dont recommend them to anyone. Dell still makes the best pre-built PCs of any of the major top5 MFGs and Apple makes the best total computer packages in terms of the quality of hardware and support.

HP and Dell have FAR better tech support than Gateway ever did and Acer is the last company on earth from which i'd purchase. their RMA process is painful, tech support is basically nonexistant, and their website could have been coded by a 3rd grader. i never liked Gateway/Emachines much before and i certainly like them less now.

Acer products are usually good bang for the buck, but their horrible support, lack of included software (many dont come with MS Works or even a TRIAL of Office), and poor RMA service makes me stay far away.

my knowledge of retail PCs is pretty extensive, but obv i wouldnt buy any prebuilt PC for myself. a laptop i'd have no choice, and all of my opinions would directly affect a laptop purchase for anyone. Apple makes the best notebooks, period, but for PCs, Dell, Asus, and Fujitsu make exceptional units.

Score: 0

|

honestly, who the hell in the modern world we live in needs a trial of microsoft office? seriously.

Score: 0

|

Microsoft's Bob Muglia and Ray Ozzie on Silverlight vs. standards

Bob Muglia: "We're trying to provide people with an environment that has capabilities that you just simply can't do today in the standards-based world."

Uh-oh, netbooks -- not Windows 7 -- will lift 2009 PC sales

Santa may bring a lump of coal to the Windows PC industry this holiday season. Netbook sales will sap PC margins, while weak Windows 7 PC sales could further drive down average selling prices.

Google's value proposition for Chrome OS: Should we feel insulted?

For a search engine that has direct access to all the world's online history, it appears to have taught Google nothing about selling a machine.

PDC 2009: What have we learned this week?

There was the freebie that no one will forget, the heebie-jeebies courtesy of Scott Guthrie, and a teensy bit clearer picture of how this cloud thingie should work.

Where there's smoke: Apple warranty stance raises troubling questions

Carmi Levy | Wide Angle Zoom: Smoking can be dangerous not only for your lungs, it appears, but for your Apple hardware warranty.

Microsoft's .NET Micro Framework is now free and open source

The latest version of Microsoft's .NET Micro framework is now in the hands of the FOSS community.

E-book readers will be in short supply this holiday season

E-readers are hot this year, and a lot of compelling new products have been released, but are there enough electrophoretic displays to go around?

Sony looks to finally open a single storefront for downloads

Sony has had many different download portals for movies, music, e-books, and games, and now it's looking to make a single shop for all of it.

Tuning out the tablet: Time to give the endless speculation a rest

Wide Angle Zoom: Wishing and hoping and thinking and praying....won't put an iTablet on the market.

Five improvements for IT managers in 2010

If businesses are to improve their efficiency for next year, they need to stop and reassess the basic tenets of their job.

Live report: Will Google Chrome OS change Linux?

The mysteries of just what Chrome OS is, and how much of an operating system it truly is, may be resolved today.