Seagate Technology, the largest maker of computer hard drives, Smade a pre-emptive strike against an emerging competitor on Monday when it filed a lawsuit in federal court accusing STEC Inc. of patent infringement. In the suit, Seagate contends that STEC’s solid-state drive products violate four Seagate patents covering how such drives interface with computers.
It’s not a big financial issue yet because the market is just taking off,” said William D. Watkins, chief executive of Seagate, which is based in Scotts Valley, Calif. “But that’s why we want to set things straight now.
Mr. Watkins said the goal of the suit was to promote the kind of cross-licensing and partnerships that have always been part of the hard-drive market.
Shares of Seagate declined 57 cents a share on Monday to close at $19.97, just after the suit was disclosed, then rose slightly in after-hours trading. STEC shares closed up 13 cents, to $6.94, then declined in late trading.
Seagate has fought to remain the largest producer of computer hard drives, swallowing up its nearest competitor, Maxtor, just two years ago.
