Sun Sees Red, Sues Azul

Sun Microsystem's acquisition of Cobalt Networks in September 2000 has made it back into the headlines, as Sun files a lawsuit against former Cobalt and current Azul CEO Stephen DeWitt over theft of trade secrets and violation of a non-compete agreement. When Cobalt announced its Qube device, a small blue box that could act as a server appliance and provide easy home or small-office networking, it impressed then-high flying Sun to pick up the company in a stock for stock merger. DeWitt came along and became a Sun employee. Fast forward to 2002, when in October of that year DeWitt ditched Sun to be CEO of reported. That didn't work out very well. "Azul has spent the last year negotiating with Sun while they have threatened us with belligerent requests to be granted a significant ownership in Azul, in addition to cash and royalty payments," Bob Haslam, an Azul attorney, said in a statement. In March, Azul sued Sun and tried to gain declaratory relief from its demands. In turn, Sun has countersued, and claimed infringement and violation of non-compete agreements. Sun also alleges the DeWitt and Azul have lured workers away from Sun; Azul VP of marketing Shahin Khan formerly worked for Sun, as did several other Azul employees. Linux Electrons Del.icio.us") | Yahoo! My Web |