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Compaq sues RLX over recruitment

Compaq Computer Corp. has filed a lawsuit against RLX Technologies, a server start-up run by a number of former Compaq executives.
Written by ZDNET Editors, Contributor
Compaq Computer Corp. has filed a lawsuit against RLX Technologies, a server start-up run by a number of former Compaq executives.

The lawsuit, filed in the District Court of Harris County in Texas, alleges that RLX violated Compaq's trade secrets by recruiting key Compaq executives, including one-time vice presidents Mike Perez and Keith McAuliffe. These former Compaq employees, the suit alleges, then improperly divulged confidential Compaq intellectual property.

Houston-based Compaq filed the suit Wednesday. The court issued a temporary restraining order Friday that prevents RLX from recruiting more Compaq employees for a week, according to The Woodlands, Texas-based RLX.

Both companies are preparing to release power-efficient, "ultradense" servers later this year. These new types of servers will be less than an inch thick and consume less energy than standard servers. These two characteristics will permit e-commerce sites and Web hosting companies to stuff more computing power into a finite amount of space.

Compaq could not be reached for comment. Kevin Bohren, RLX's vice president of business development, called the suit groundless. -- Michael Kanellos, Special to ZDNet News

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