California Computer Products, Inc., and Century Data Systems, Inc., vs. International Business Machines Corporation records

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.