Atari strikes back
22-Jul-93 12:30:13
Sb: #107825-Atari strikes back
Fm: Steve Ahlstrom 76703,2006
To: Christian Busse 100121,1360
Christian,
That's not exactly the story…
Amiga Corp. had a cash problem. They'd negotiated a deal with (Warner
owned) Atari that would give them x amount of money (it's been too long
and I don't remember the actual figure) in return for Atari's use of the
Amiga chip set in a "non-computer" product (meaning a game machine).
There was an out in the contract … if Amiga Corp repaid the investment
in full within a certain period of time the contract was null and void.
When Tramiel purchased Atari from Warner he thought he had the rights to
the Amiga chip set. He did, but the but the time period for the
cancellation of the contract had not expired. With less than a week
remaining before the contract was to go into force, Commodore purchased
Amiga Corp outright and repaid Atari.
There were multiple lawsuits over this action and the accusation of former
Commodore employees taking proprietary info with them when they join
Tramiel at Atari. Eventually this was all worked out with the outcome
going against both companies. Part of the settlement called for the
nondisclosure of damages.
-sja