( ESNUG 510 Item 6 ) -------------------------------------------- [10/02/12]

Subject: SNPS-acquires-EVE rumor confirmed plus Aart is now suing Wally

> I've recently heard from certain sources a rumor that Synopsys has made a
> bid to acquire EVE and its line of Zebu HW emulators in order to counter
> the Cadence Paladium offering in the Intel bid.  EVE pulls in $60 million
> a year.  I've heard that roughly $25 million of that is in sales to Intel.
> What better way to force Intel into your arms than by encircling them?
>
>     - from http://www.deepchip.com/items/0508-06.html


From: John Cooley <jcooley=user domain=zeroskew not calm>

Five days ago the Synopsys Legal Department confirmed this SNPS-to-buy-EVE
rumor when it filed a lawsuit in U.S. District Court in San Jose, CA with:

   "On September 27, 2012, Synopsys, Inc. entered into an agreement to
    acquire the business of EVE, including ZeBu products.  The proposed
    acquisition is expected to close in the immediate future."

I had that story 48 days ago!  Yea!

This SNPS legal filing even indirectly mentioned my SNPS-EVE story:

   "On August 20, 2012, Dr. Wally Rhines, CEO of Mentor Graphics, wrote
    to Aart de Geus, CEO of Synopsys, Inc.  In reference to a published
    rumor that Synopsys was in discussions to acquire EVE, Dr. Rhines
    stated the settlement agreement between Mentor and EVE in 2006 contains
    terms that may be considered 'material' to the acquisition, and that
    Dr. de Geus 'should ensure [his] team is aware' of them."

                  

But the SNPS Legal Department's reaction was ugly.  Their filing went on:

   "... given the terms of the 2006 settlement agreement, coupled with
    the timing of the communication, Mentor Graphics' statements were
    meant to convey an explicit threat that should Synopsys consummate its
    contemplated acquisition of EVE, Synopsys and/or EVE would thereupon
    be subject to suit by Mentor Graphics for patent infringement of
    the '531, '176, and '376 patents."

And it went on that this was a "substantial controversy" between SNPS and
MENT -- and then sought a "declaratory judgement of non-infringement and
invalidity, as set forth further herein."

Did you get that?

Aart's buying EVE (as I reported 48 days ago) and instead of waiting for
MENT to transfer the MENT-EVE patent lawsuit to SNPS, Aart's lawyers went
on the immediate offensive to:

   1.) move the lawsuit out of Oregon and into San Jose, CA
   2.) have the MENT patents involved declared invalid, and
   3.) if valid, have the court declare SNPS/EVE ZeBu doesn't
       infringe the MENT patents involved.

And, as a kicker, Aart's lawyers wants MENT to pay "attorney fees, costs
and expenses" plus that this court grant SNPS "such other relief as the
Court deems appropriate" -- which is a lawyer's way of saying "and if we
can squeeze some extra $$$ out of MENT for this, we want that, too!"

Whoa.  Even before SNPS announces its EVE acquisition, Aart has his attack
lawyers go on full attack.  Talk about aggressive.  Wow!

    - John Cooley
      DeepChip.com                               Holliston, MA
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