Gateway Inc.

Phillip Adams, a 51-year-old engineer, sued Gateway computers for $150 million for allegedly infringing a patent he held that solved a problem that corrupted or destroyed software or data downloaded from old floppy disks onto personal computers. This same technology is used in CD-ROMs.

Adams contended that Gateway asked for demonstrations of his programs, and then applied the fixes to affected computers, violating both a nondisclosure agreement and Adams' patents. Gateway settled the suit for an undisclosed amount after the first day of trial. (Apr-05-06) [SEATTLE POST INTELLIGENCER]

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