Intel Corporation, Intel Microelectronics Asia Ltd., and Intel Semiconductor Ltd. were complained by Via Technologies, Inc. for statements made during interviews and subsequently published in the media in possible violation of the Fair Trade Act

Chinese Taipei

Case:

Intel Corporation, Intel Microelectronics Asia Ltd., and Intel Semiconductor Ltd. were complained by Via Technologies, Inc. for statements made during interviews and subsequently published in the media in possible violation of the Fair Trade Act

Key Words:

chipsets, warning letter, media, microprocessors

Reference:

Fair Trade Commission Decision of April 3, 2003 (the 595th Commissioners’ Meeting); Letters Kung Er Tzu No. 0920002986 and 0920002987

Industry:

Manufacture and Repair of Electronic and Semiconductor Production Equipment (2548)

Relevant Law:

Article 24 of the Fair Trade Law

Summary:

1. This case resulted from a complaint filed by Via Technologies, Inc. (Via) against Intel Corporation, Intel Microelectronics Asia Ltd. and Intel Semiconductor Ltd. (Intel) for statements made to the media by their representative Chen Chun-sheng on 9 August 2001 at the CeBIT computer exhibition in Shanghai. Mr. Chen stated that Via’s P4X266 chipset could not be shipped until they were licensed by Intel. The subsequent release of these statements by reporters created blockages in the marketing channels for the aforementioned chipsets. Via asserted that the statements in question should be considered "other means by which one's own or other businesses' current or potential trading partners become informed of matters" and thereby constitute a warning letter.

2. Issuance of a warning letter by a business refers to any business who informs ones own or other businesses' current or potential trading partners of matters by warning letter, letter of notification, attorney letter, public letter, advertisement, or any other sufficient means. In this case, the information released by Intel was that another business had infringed upon their patent rights. The phrase "other means by which ones own or other businesses' current or potential trading partners become informed of matters," however, is a generalized provision and should refer to intentional and premediated press releases and press conferences. The Fair Trade Commission’s (FTC’s) investigation into the brief interviews Mr. Chen Chun-sheng gave to Chen Chia-jui of Digitimes, Tu Chi-hao of the China Business Times and Chen Ling-hsuan of the Economic Daily at the 9 August 2001 CeBIT computer exhibition in Shanghai, revealed that they were not specifically arranged by Intel, nor was there a specific press release to be issued and that these interviews consisted of random questions and answers. The aforementioned three reporters each published their own individual interpretations based on the content of their discussions with Mr. Chen, and it is difficult to verify whether or not, on the day in question, the statements made by Chen Chun-sheng were misinterpreted. Moreover, as the interviewee himself later disputed the content of the media reports, there is some discrepancy between this and the issuance of warning letters referred to as "other means by which one's own or other businesses' current or potential trading partners become informed of matters."

3. The FTC also found that, before Chen Chun-sheng made the statements in question, Intel and Via entered into negotiations regarding the license to produce chipsets for Pentium 4 microprocessors. Furthermore, this dispute and related information were continuously reported by the media. Therefore, it is quite likely that both Intel and Via's trading counterparts and potential trading counterparts were aware of the licensing dispute. As such, it is difficult to establish that the statements made by Mr. Chen were obviously unfair or were sufficient to affect the trading order, in violation of Article 24 of the Fair Trade Act. Although the disputed statements made by Mr. Chen Chun-sheng do not constitute the issuance of a warning letter, in the spirit of maintaining the trading order, the FTC issued a letter to Intel requesting that they pay attention to the content of statements made by employees or representatives of their company when interviewed by the media so as to avoid any misinterpretation that might be in violation of the Fair Trade Act.

Appendix:
Via Technologies, Inc.’s Uniform Invoice Number: 86870786
Intel Corporation’s Uniform Invoice Number: N/A
Intel Microelectronics Asia Ltd.’s Uniform Invoice Number: 16432460
Intel Semiconductor Ltd.’s Uniform Invoice Number: N/A

Summarized by Chen, Shu-Hua; Supervised by Shih, Chin-Tsun