Who Invented the Microprocessor?...Hyatt v. Patent Office
Who Invented the Microprocessor?...Hyatt v. Patent Office
In the early days of the computer industry, companies like Texas Instruments and Intel were racing to become the first to invent a microprocessor chip, the computation engine on a single wafer otherwise known as a central processing unit, or CPU.
Intel claimed victory in 1971, patented its creation and was generally regarded as the inventor of the microprocessor upon which the desktop computer industry was built. But in 1990, the U.S. Patent and Trademark Office reversed its decision and awarded that recognition to Gilbert Hyatt of La Palma, California, who had submitted a microprocessor patent application in 1970.
In anticipation of earning millions for his invention, Hyatt moved to Nevada, where the tax laws were more favorable, and in 1991 he received a $40 million payment for licensing his patent. The Franchise Tax Board (FTB), which claimed Hyatt had been a citizen of California at the time of his windfall, audited him and in 1995 said he owed substantial taxes and a huge penalty payment for fraud.
In the meantime, the patent office conducted a five-year proceeding to determine if yet another competing patent claim had any substance and in 1996 reversed its decision and recognized former Texas Instruments engineer Gary W. Boone as the inventor of the single-chip microprocessor. The patent office said Hyatt’s device as designed was not implementable with the technology available at the time. By then, Hyatt had netted at least $70 million in licensing fees and sued in federal court to overturn the patent office’s determination.
http://www.allgov.com/Controversies/ViewNews/Who_Invented_the_Microprocessor__Hyatt_v_Patent_Office_120219
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