California Computer Products, Inc.,
and Century Data Systems, Inc., vs. International Business Machines Corporation
Records, 1963-1972. Finding Aid.
Summary Information
California Computer
Products, Inc., and Century Data Systems, Inc., vs. International Business
Machines Corporation records
1963-1972
California
Computer Products
10 boxes (7.25
cubic feet)
Language: English
CBI 2
Photocopies of trial
transcripts, trial exhibits, legal memoranda, and other legal documents
relating to California Computer Products, Inc. vs. IBM Corporation. Although
some items are missing from the collection, the records yield a complete
picture of the lawsuit and issues involved. Also included is information about
IBM's and CalComp's business practices, the practices of other computer
companies in the late 1960s and early 1970s, and the "plug compatible" computer
business based on IBM computer systems. The collection is divided into three
sections: trial transcripts (1976-1977), briefs and memoranda (1970,
1976-1977), and exhibits (ca. 1963-1977). Exhibits include an EDP market share
study of computer products from 1953 through 1970.
University of
Minnesota Libraries. Charles Babbage Institute.
Access and Use
The records were given to the Charles Babbage Institute by R. George
Glaser in 1980.
Access to the collection is unrestricted.
Most of the material in the collection was presented during trial and
is a public record. However, some of the exhibits may be protected by the
copyright law (Title 17, U.S. Code). Request for permission to publish material
from the exhibits should be discussed with the archivist.
CalComp vs. IBM Records (CBI 2), Charles Babbage Institute, University
of Minnesota, Minneapolis.
Arrangement
The materials in this collection are arranged into the following
groups:
- Trial Transcripts, 1976-1977
- Briefs and Memoranda, 1970, 1976-1977
- Exhibits, ca. 1963-1977
Historical Note
California Computer Products, Inc. (CalComp) was a manufacturer of
digital plotters, disk drives and other "plug compatible" computer equipment.
It was incorporated in September 1958 and was involved primarily with the
production plotters until about 1968, when it began selling disk drives
manufactured by Century Data Systems of Anaheim, California. Total revenues for
the company were over $6 million in 1966 and $118 million by 1977. By 1970,
CalComp had acquired controlling interest in Century.
A portion of CalComp's business, particularly disk drives, was aimed
at providing peripheral equipment for other manufacturers' systems at a
substantial reduction to the manufacturers' price. On October 3, 1973, CalComp
filed a claim against IBM for preventing CalComp from competing in the disk
drive market. The company claimed that IBM had monopolized the market through
premature introduction of new central processing units and disk drives, price
cuts on existing disk products, leasing policies and other unfair marketing
practices over a period of ten years (1963 - 1972). CalComp sought treble
damages (as stipulated under section 4 of the Clayton Act) on an amount of $102
million. The claim was filed in U.S. District Court, Central District of
California, as number 73-2331-RM.
CalComp evidently requested a jury trial because the company felt that
a jury would be more sympathetic to CalComp's complaint and it would be more
difficult for an appellate court to reverse a jury decision. After three years
of discovery, the trial began on November 15, 1976 with Judge Ray McNichols
presiding. Maxwell M. Bletcher of Bletcher, Collins and Hoecker was lead
counsel for CalComp. David Boies of Cravath, Swaine and Moore represented IBM.
Testimony was given in person and through deposition by both IBM and CalComp
executives, as well as other computer manufacturers and expert witnesses.
After CalComp had presented its case, IBM moved for a directed
verdict. On February 11, 1977, Judge McNichols ruled in favor of IBM's motion,
citing that there was "not substantial evidence in the record to support a
finding of unlawful monopolization in any of the relevant markets suggested."
CalComp filed an appeal with the 9th Circuit Court of Appeals on
February 16, 1977 in San Francisco (no. 77-1563). Judge Herbert Y. C. Choy
denied the rehearing on November 16, 1979 and ruled that IBM's pricing,
marketing and design changes did not constitute an attempt to monopolize the
market.
CalComp was bought by Sanders Associates in 1980.
- California Computer Products v. International Business Machines,
613 F.2d 727 (1979).
- Fisher, Franklin M.; McKie, James W.; Mancke, Richard B. I BM and the U.S. Data Processing Industry: An Economic
History. New York: Praeger Publishers, 1983, pp. 296.
- Gardner, W. David, "The West Coast Cases: Lively Affairs to be
Tried by Juries." Datamation , July 1976, pp.
110-111.
- Myers, Edith, "A Change in Pace?" Datamation, February 1977, pp. 137-138.
- Myers, Edith, "CalComp's Next Move: Appeal."
Datamation , March 1977, pp. 161-164.
- Myers, Edith, "Two Groups Watch Antitrust Action."
Datamation , October 1976, pp. 138.
- Myers, Edith, "West Coast Cases: The First Is On."
Datamation , December 1976, pp. 159-161.
Collection Scope and Content Note
The collection contains photocopies of trial transcripts, trial
exhibits, legal memoranda and other legal documents relating to California
Computer Products, Inc. vs. International Business Machines Corporation.
Although some items are missing from the collection, the records yield a
complete picture of the lawsuit and issues involved. The records also include
information about IBM's and CalComp's business practices, the practices of
other computer companies of the late 1960s and early 1970s, and the "plug
compatible" equipment business based on IBM computer systems.
The collection was donated in 1980 by R. George Glaser, a consultant
for IBM. Further information about CalComp's and IBM's products may be found in
the Near-print collection at the Charles Babbage Institute. Two volumes from
the trail transcript were missing from the Glaser donation; those volumes were
duplicated from records at the National Archives.
Subject Terms
- This collection is indexed under the following headings in the catalog
of the University of Minnesota Libraries. Researchers desiring materials about
related topics, persons or places should search the catalog using these
headings.
- Century Data
Systems
- International
Business Machines Corporation
- California Computer
Products
- Computer industry--United
States
- Computer input-output
equipment
- Computer industry--Law and
legislation
- Computers
- Data disk drives
industry
Box and Folder List
| Location |
Title |
| |
Trial Transcripts, 1976-1977
Note Includes 58 photocopied volumes of verbatim transcripts. Each
volume lists individuals who represented the Plaintiffs and Defendant, the
witnesses (who appeared in person or by deposition), and a list of exhibits
offered. An index of witnesses can be found above. Among the witnesses were
Robert E. McDonald (Sperry), Robert S. Oelman (NCR), William C. Norris (Control
Data), Clarence W. Spangle (Memorex), Patrick J. McGovern (Honeywell), Thomas
J. Watson, Jr. (IBM), Max Palevsky (SDS), and Lester L. Kilpatrick (President,
CalComp). Volume 57 contains presentations in support and against IBM's motion
for a directed verdict and the court's determination in favor of IBM. Volume 58
contains Judge McNichols' remarks to and dismissal of the jury.
|
|
Box 1 |
Volumes 1 - 18, pages 1 - 4345, Nov 9 - Dec 7, 1976 Box 1, Folder 1-18
|
|
Box 2 |
Volumes 19 - 36, pages 4346 - 7590, Dec 8, 1976 - Jan 5, 1977 Box 2, Folder 1-18
|
|
Box 3 |
Volumes 37 - 54, pages 7591 - 10756, Jan 6 - Feb 7, 1977 Box 3, Folder 1-18
|
|
Box 4 |
Volumes 55 - 58, pages 10757 - 11088, Feb 9 - Feb 14, 1977 Box 4, Folder 1-2
|
| |
Briefs and Memoranda 1970, 1976-1977
Note Includes legal documents filed in the lawsuit and one document
pertaining to a 1970 bankruptcy hearing. The set of legal documents appears to
be complete except for the original and amended complaint filed by CalComp.
Also included is a copy of the CalComp appeal brief and an amicus curiae brief
from Transamerica Computer Company for the appeal.
|
|
Box 4 |
Plaintiff's Trial Brief, Sept. 7, 1976 Box 4, Folder 3-4
Note Describes CalComp's complaint against IBM and explains the legal
basis for support of its claim. Exhibit 2 in the Brief is a 173-page directory
of IBM executives from 1963 through 1971. The directory is organized
alphabetically and includes position titles and the dates that the positions
were held.
|
| |
CalComp's Final Damage Claim, Sept. 15, 1976 Box 4, Folder 5-6
Note Details the process that CalComp used to determine the amount of
damages caused by IBM. It includes five exhibits, some of which contain
photocopies of computer print-outs and are difficult to read.
|
| |
Trial Memoranda
Note The series of Trial Memoranda issued prior to the trial relates
to IBM's attempt to issue a counterclaim of damage, prevent the trial from
being heard before a jury and move for a summary judgement. The other remaining
trial memoranda concern IBM's successful motion for a directed verdict.
|
|
Box 5 |
Trial memorandum with respect to IBM's counterclaim
case in chief, Sept. 7, 1976 Box 5, Folder 1
|
| |
Defendant's trial memorandum on the "issues" for
which Plaintiffs either claim has no impact or impact and no damage and
memorandum in support of its motions to preclude evidence and to strike the
jury, Oct. 11, 1976 Box 5, Folder 2
|
| |
Defendant's trial memorandum on the "issues" for
which Plaintiffs either claim has no impact or impact and no damage and
memorandum in support of its motions to preclude evidence and to strike the
jury, Oct. 11, 1976 Box 5, Folder 3
|
| |
IBM's memorandum in support of its motion for a
directed verdict and its motion to dismiss, Feb. 9, 1977 Box 5, Folder 4
|
| |
Memorandum in opposition to motion for dismissal,
Feb. 10, 1977 Box 5, Folder 5
|
|
Box 10 |
Appellant's brief, ca. Aug. 1977 Box 10, Folder 1
Note Describes the CalComp appeal against the verdict in their case
against IBM.
|
| |
Amicus curiae brief filed
by Transamerica Computer Corporation, Aug. 23, 1977 Box 10, Folder 1
Note Transamerica Computer Corporation filed a motion together with
an amicus curiae brief in support of CalComp.
|
| |
Two other legal documents do not have a clear relation
to the CalComp case and may have been used for reference in preparing the
litigation |
|
Box 5 |
In re IBM peripheral EDP devices antitrust litigation,
Dec. 10, 1976 Box 5, Folder 6
Note Verbatim transcript relating to antitrust litigation involving
IBM, Memorex, and Transamerica. It occurred during the CalComp trial on
December 10, 1976, and, at times, refers to the CalComp case.
|
| |
Computer Applications Incorporated, Hearing on sale
of assets, District Court, Southern District of New York, No. 70-B-775,
Oct. 9, 1970 Box 5, Folder 7
Note Concerns a 1970 hearing on the sale of assets of Computer
Applications, Inc. No connection between the bankruptcy hearing and the CalComp
case was found.
|
| |
Exhibits, ca. 1963-1977
Note Contains both Plaintiffs' (CalComp and Century Data) and
Defendant's (IBM) exhibits. They include photocopies of correspondence, memos,
internal and public reports, presentation outlines, product literature and
other related items. Many exhibits are missing and the collection does not
contain all of the exhibits referred to in the trial. A sample was used to
determine the range of dates of the exhibits so there may be documents that
date beyond 1963 through 1971. The exhibits are not limited to IBM or CalComp
records, but include records from other computer manufacturers, such as
memoranda from J. Presper Eckert, Jr. of Sperry Rand/Univac.
Included in the IBM exhibits are two sets of records represented
by Defendant's exhibits 1311, 3340 and 3381. The first is the "Computer
Installation Data File," a listing of all domestic computer installations from
1974 through 1975. The file, produced by International Data Corporation of
Newtonville, Massachusetts, is arranged by state and subdivided by city. The
collection only includes data for California, Colorado, Connecticut, Florida,
Georgia, and Idaho. Each entry gives the name and address of the site,
installation date, price, computer, major applications, languages used, type of
business and information about memory size and peripherals. The file is a
photocopy of a print- out and some pages are difficult to read. The second set,
"EDP Market Share Study," is a photocopied print-out of data about domestic
data processing markets. It is arranged by market segment and subdivided by
company and products. Thus the Control Data 3600 is found under the product
market "General Purpose / Large General / Manufacturer." Similarly, Data
General's Nova Mini is found under "Minicomputer / Very Small Specialized /
Manufacturer." No master list of the market segments is provided. The list
covers commercial computer products and services from 1953 through 1970. Each
company entry includes data on annual total product revenues for each market
segment, total product revenues as a percentage of its data processing
revenues, and percent of market share. Each product entry includes the date the
product was announced, first delivery date and annual revenue produced by the
product. The source of the study cannot be determined from the exhibit. Some
pages are extremely difficult to read and cannot be photocopied further.
|
|
Box 6 |
CalComp Exhibits 3 - 998, ca. 1963-1971 Box 6, Folder 1-17
|
|
Box 7 |
CalComp Exhibits 1064 - 2359, ca. 1963-1971 Box 7, Folder 1-5
|
| |
IBM Exhibits 2629 - 3679, ca. 1963-1971 Box 7, Folder 6-16
|
|
Box 8 |
IBM Exhibits 3703 - 6963, ca. 1963-1971 Box 8, Folder 1-3
|
| |
IBM Exhibit 1311, Computer Installation Data File,
California, pages 157 - 813, 1976 Box 8, Folder 4-7
|
| |
IBM Exhibit 3340, Computer Installation Data File,
Colorado - Idaho, pages 814 - 1411, 1976 Box 8, Folder 8-11
|
| |
IBM Exhibit 3381, EDP Market Share Study, pages 1 -
717, 1976 Box 8, Folder 12-16
|
|
Box 9 |
IBM Exhibit 3381, EDP Market Share Study, pages 718 -
1749, 1976 Box 9, Folder 1-8
|
|
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