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IBM To Squeeze PC Manufacturers For Back Royalties

by Robin Pilgrim, LawAndTax-News.com, London

04 June 2003

According to reports in the technology media this week, IBM is now targeting small PC builders as part of its continuing campaign to enforce patents on IBM clones.

The UK's Personal Computer Association (PCA) recently revealed that one of its members had received a communication from the firm's legal office, suggesting that its PC products 'may incorporate inventions covered by one or more IBM patents', and proposing a meeting to discuss the licensing of the technology.

However, experts have warned that IBM is also likely to ask for substantial back-royalties from firms which sell own-brand PCs, which could cripple smaller organisations.

Reporting on the PCA's announcement this week, The Inquirer news service alleged that IBM has been forcing PC manufacturers to sign non-disclosure agreements about the deals reached with regard to licensing and royalties, and suggested that this 'is why, presumably, we haven't heard more of this before'.

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