Philadelphia Daily News from Philadelphia, Pennsylvania • Page 25

Philadelphia Dally Nawa Friday, July 13, 1984 25 Brass Line Up for Bonuses. BusinessNEWS Commodore claims ex-employees stole computer plans Tho Latest Stocks Begin Slow Comeback Stock prices were slightly higher early this afternoon as the market tried to snap out of a threc-dny slump, but equities were running into competition from htgh-ylclding bonds. Brokers said investors were encouraged by government reports that showed inflation had remained in check while the economy production and sales were Increasing. The Dow Jones industrial average, up 7 at the outset after falling 29.48 the previous three sessions, was ahead 4 09 to 1,108.66 at 1 p.m. dent's job at Commodore in January, last week bought Atari, which is based in California.

Meanwhile, the Chester County district attorney said he is investigating equipment theft at a Commodore plant He said the case does not appear to involve stolen trade secrets. The employees named in the civil action are Shiraz Shivji of Airedire Court in Paoli; Arthur S. Morgan, of Princeton Road in Exton; John E. Hoenig, of Valley Green Drive in Coatesville; and Douglas L. Renn, of Goshen Road in West Chester.

Renn By GARY THOMPSON Daily News Staff Writer Commodore Business Machines attorneys went to court today to choke off what they contend is a drain of trade secrets. West Chester-based Commodore filed a civil suit Tuesday against four former employees, claiming they stole plans for top-secret Commodore computers, equipment and programs. The complaint charges that the individuals took the secrets to Atari, where they now work. Jack Tramiel, who quit the presi THE NEWS antic ciimmed crimm Vi A LIVELIER LEARNING EXPERIENCE IBM Earnings Up 20 IBM reported today that its second-quarter earnings rose 20.8 percent, largely because more customers are buying equipment Instead of renting it. In the quarter ended June 30, the computer giant's earnings climbed to $1.62 billion, or $265 a share, from $1.34 billion, or $2.22 a share, In the same span last year.

Spare PE, Report Says Philadelphia Electric Co. customers should not have to pay $29 million for a one-month outage last year at New Jersey's Salem Unit 1 nuclear power plant, the Public Utility Commission staff said today in liar-rlsburg. "Imprudent management" by the Public Service Electric Gas Co. of New Jersey, co-owner of the reactor, Is to blame for the shutdown, the staff said In a recommendation to the five-member commission. The PUC is studying a PE request for a rate boost of $106 million, Including the cost of the Salem outage.

Ransome Drops Site Ransome Airlines, the nation's largest regional airline, on Sept. I will discontinue flights to Worcester, Mass. Ransome said the Worchester traffic from Philadelphia and other cities failed to meet expectations. Jack Tramiel, the former Commodore chief, heads Atari, where the defendants now work was a project manager; the others were engineers. An Atari spokesman said, "Commodore's civil action involves only the four people named in the suit There are no charges against Atari whatsoever." Commodore declined comment Chester County Judge M.

Joseph Melody Jr. issued a preliminary injunction against the defendants Tuesday. The injunction prohibits them from disclosing secrets and from trying to duplicate or destroy any proprietary data they possess. The company is seeking a permanent injunction at a bearing before Melody today. In a separate development, Chester County District Attorney James P.

MacElree 2nd said yesterday he has been investigating equipment theft at a Commodore plant since April. "I wouldn't be surprised if charges are filed soon," he said. "I expect that within a month or so, we'll have something." He said he could not disclose any more details without harming the investigation, but he indicated Commodore's civil suit was not related to his case. The alleged theft of trade secrets was described in sworn affidavits filed by three current Commodore employees. The documents state that "beginning in May 1984, while still employed by Commodore and also after terminating employment, de-fendent Shivji sought to employ defendants Renn, Morgan, Hoenig and others in the anticipated new business with Tramiel." Tramiel bought Atari's home computer operation from Warner Communications last week.

In May and June, the defendants obtained "highly sensitive and confidential" material regarding a prototype Commodore business computer, two kinds of experimental disk drives and Commodore software still on the drawing board, the company charged. The documents reveal rare insights into the technology behind a new Commodore computer that could place the home computer king in a lucrative niche of the business market. Tramiel, analysts suspect, wants to get there first. Tramiel quit the Commodore presidency in January after a row with the company's board. Commodore executives have voiced suspicions that Tramiel wants to build an Atari machine that will compete head-to-head with Commodore.

Both firms are racing to fill a void in the market for low-priced business computers. Home computers prices have fallen rapidly in recent months. However, the prices of machines such as the Apple Macintosh and the IBM personal computer have stayed doggedly high well above $2,000. Analysts say Atari and Commodore want to develop a powerful business machine that will sell for about $1,500. Several months ago, Commodore bought production rights to the Zilog 8000 series microprocessor.

The Zilog is designed to run powerful business Broker Pleads Guilty A stockbroker pleaded guilty to crimial charges that he profited illegally from information leaked by a former Wall Street Journal reporter before publication. Peter Brant, formerly of Kidder, Peabody agreed to pay back $454,000 and to cooperate with the government In the probe of securities violations involving tips allegedly provided by reporter K. Foster Wlnans. Brant and Winans also are among five defendants In a civil suit by the Securities and Exchange Commission. computers.

In April, the company showed off a prototype business personal computer at the Hannover Fair in West Germany. At the time. Commodore said it might begin selling a finished model by late 1984 or early 1985. The court documents Indicate that blueprints allegedly lifted from Commodore files pertain to the Z-8000 machine. According to the court records, the stolen documents Include "the product of ongoing research and development efforts into the 'Z-8000 computer system, a state-of-the-art computer with potential for home and business use currently scheduled to be introduced by Commodore in early 1985." Also allegedly stolen were "design proposals, schematic diagrams and other material associated with the 'Z 8 a unique product developed by Commodore with the capacity of maximizing the ability of owners of computers to retrieve information stored in the format of numerous computer manufacturers." Analysts said the Z-8 disk is apparently a device built to allow Commodore machines to "read" any kind of floppy disk Apple, IBM and others.

"Everyone has been expecting Commodore to test the business computer market," said Mark Man-son, computer industry analyst with Donaldson, I.ufkin 8r Jcnrette in New York. "This apparently is one of the Commodore candidates. But I'm sure there are others." Your students are there because they want to sharpen their basic skills, accelerate, lighten their workloads in the fall. Help them achieve their goals with the Daily News. The Daily News- in the classroom is an easily understood source of information that will capture their interest, broaden their knowledge and bring positive results.

It covers so many areas of interest that it fits easily into your summer school curriculum. It will surely stimulate discussion, encourage participation and instill a special sense of self-esteem in your students. Call Daily News Educational Services for information on- receiving the Daily News in your school this summer. (215) 854-5537 In Suburban Pennsylvania 1-800-222-2765 5537 In New Jersey and Delaware 1-800-523-9068 5537 Judge: Let 'Em Vote A judge in Los Angeles has refused to block a vote on Carter llawtcy Hale Stores proposal to reincorporate in Dcleware. The Limited which has been seeking to take over Carter Hawlcy, the parent company of John Wanamakcr stores, had sought an injunction against the move, which is to be voted on by shareholders July 26.

Carter llawley is now incorporated In California. tM llADElPMIA DA I IV NEWS.