Intel loses copyright fight
In a verdict potentially worth billions of dollars, a federal court jury in San Jose, Calif., ruled yesterday for Advanced Micro Devices Inc. in its long-running litigation with Intel Corp.
The jury found that a 1976 copyright agreement between Advanced Micro Devices and Intel granted Advanced Micro rights to sell microchips containing Intel microcode, which is software embedded in the chip. Intel said it would appeal.
Shares in Advanced Micro Devices soared on the news, closing at $28.875, up $6.125, on the New York Stock Exchange. Intel shares dropped $1.50, to $70.125, on Nasdaq.
Fleet Financial to reduce staff
Fleet Financial Group Inc. said it plans to cut 21 percent of its work force, about 5,500 workers, and reduce overhead expenses by $300 million annually by 1995 as part of a seven-month restructuring program.
About 3,000 of the job cuts will come through layoffs.
The restructuring, which is expected to boost annual revenue by $50 million, will result in a first-quarter charge of $25 million, the banking company said.
Spectrum, Sculley withdraw suits
Spectrum Information Technologies Inc. and John Sculley, who left Apple Computer Inc. to lead the wireless firm for four months and then quit in a bitter dispute, said yesterday they had agreed to withdraw their lawsuits.
The announcement drove Spectrum stock sharply higher. Spectrum closed up 50 cents, at $3.4375, in Nasdaq trading.
The suits were filed within days of Mr. Sculley's surprise departure from the wireless data company in early February.
Mr. Sculley, the former Apple chairman who joined Spectrum in October, sued for fraud, contending Spectrum Chairman Peter Caserta did not disclose financial problems at the company or disclose that Spectrum was the subject of a Securities and Exchange Commission inquiry at the time Mr. Sculley was hired.
Manhasset, N.Y.-based Spectrum then sued Mr. Sculley, claiming damages of more than $300 million. It alleged breach of contract, mismanagement and libel.
Gap unveils 40-store division
The Gap Inc. yesterday announced a new 40-store clothing division, Old Navy Clothing Co., which will carry lower-priced merchandise than the company's successful Gap sportswear chain.
Although the styles featured by Old Navy Clothing will be similar to those at the Gap, the new chain will use fabric blends, a Gap spokesman said. Gap clothing relies heavily on cotton fabrics.