3Dfx Tells It to the Judge

When previously happy couples end up in court, it's rarely a pretty sight. But the court documents do often make for interesting reading.

The documents filed by 3Dfx Interactive - a complaint demanding more than US$200 million in damages from Sega Enterprises (Sega), Sega of America, and NEC Corp. - are no exception.

The document filed with Santa Clara County Superior Court on August 29, 1997 - mere allegations, the Sega lawyers would remind us - state that Sega and Sega of America intentionally misrepresented their intent to use the 3Dfx chipset in its new console system (commonly referred to as Dural), intentionally sought to acquire 3Dfx confidential information, and outright lied to 3Dfx regarding the status of the agreement entered into on February 28, 1997.

That agreement memorialized and detailed the alliance between the two companies wherein 3Dfx Interactive would develop and manufacture the chipset to be used in Sega's fourth generation console.

The suit states in part that "It is now clear that Sega has consciously attempted to deprive 3Dfx of its intellectual property and to prevent fair and honest competition in the market for 3D graphics accelerator chipsets. Sega intentionally led 3Dfx to believe that Sega was committed to the 3Dfx chipset for Sega's new game console, while knowing it would ultimately choose to use the NEC chipset. Sega received, under false pretenses of the development contract, confidential design and development information and materials, all of which were proprietary and highly confidential property of 3Dfx."

The document continues and states that "3Dfx alleges that Sega intends to use the trade secret and other confidential information obtained from 3Dfx under the false pretenses of the development contract for its benefit in developing the NEC chipset."

The NEC chipset is now the chipset of choice for Sega's new game console.

For those keeping score, the nine-count complaint alleges Breach of Contract, Breach of Covenant of Good Faith and Fair Dealing, Inducing Breach of Contract, Interference of Contract, Intentional Misrepresentation, Negligent Misrepresentation, Violation of Business & Professions Code, Common Law Unfair Competition, and Threatened Misappropriation of Trade Secrets.