Editing MOS Technology 6502 (section)

===Motorola lawsuit===
[[File:MCS6500 Datasheet May 1976 cover.jpg|thumb|upright|The May 1976 datasheet omitted the 6501 microprocessor that was in the [[:File:MCS650X Datasheet Aug 1975 cover.jpg|August 1975]] version.]]
The 6501/6502 introduction in print and at Wescon was an enormous success. The downside was that the extensive press coverage got Motorola's attention. In October 1975, Motorola reduced the price of a single 6800 microprocessor from {{US$|long=no|175}} to {{US$|long=no|69}}. The {{US$|long=no|300}} system design kit was reduced to {{US$|long=no|150}} and it now came with a printed circuit board.<ref name="MC6800 price reduction">{{Cite journal |last=Motorola |title=All this and unbundled {{US$|long=no|69}} microprocessor |journal=Electronics |volume=48 |issue=22 |page=11 |publisher=McGraw-Hill |date=October 30, 1975 |url=http://commons.wikimedia.org/wiki/File:Motorola_MC6800_microprocessor_ad_1975.jpg |access-date=August 8, 2010 |archive-date=December 15, 2011 |archive-url=https://web.archive.org/web/20111215093452/http://commons.wikimedia.org/wiki/File:Motorola_MC6800_microprocessor_ad_1975.jpg |url-status=live}} The quantity one price for the MC6800 was reduced from {{US$|long=no|175}} to {{US$|long=no|69}}. The previous price for 50 to 99 units was {{US$|long=no|125}}.</ref> On November 3, 1975, Motorola sought an injunction in Federal Court to stop MOS Technology from making and selling microprocessor products. They also filed a lawsuit claiming patent infringement and misappropriation of trade secrets. Motorola claimed that seven former employees joined MOS Technology to create that company's microprocessor products.<ref name="Electronics Nov 13 1975 2">{{Cite journal |last=Waller |first=Larry |title=News briefs: Motorola seeks to stop microprocessor foe |journal=Electronics |volume=48 |issue=23 |page=38 |publisher=McGraw-Hill |location=New York |date=November 13, 1975}}"Motorola said last week it would seek an immediate injunction to stop MOS Technology Inc., Norristown, Pa., from making and selling microprocessor products, including its MCS6500." (This issue was published on November 7.)</ref>

Motorola was a billion-dollar company with a plausible case and expensive lawyers. On October 30, 1974, Motorola had filed numerous patent applications on the microprocessor family and was granted twenty-five patents. The first was in June 1976 and the second was to Bill Mensch on July 6, 1976, for the 6820 PIA chip layout. These patents covered the 6800 bus and how the peripheral chips interfaced with the microprocessor.<ref>Motorola was awarded the following US Patents on the 6800 microprocessor family: 3962682, 3968478, 3975712, 3979730, 3979732, 3987418, 4003028, 4004281, 4004283, 4006457, 4010448, 4016546, 4020472, 4030079, 4032896, 4037204, 4040035, 4069510, 4071887, 4086627, 4087855, 4090236, 4145751, 4218740, 4263650.</ref> Motorola began making transistors in 1950 and had a portfolio of semiconductor patents. Allen-Bradley decided not to fight this case and sold their interest in MOS Technology back to the founders. Four of the former Motorola engineers were named in the suit: Chuck Peddle, Will Mathys, Bill Mensch and Rod Orgill. All were named inventors in the 6800 patent applications. During the discovery process, Motorola found that one engineer, Mike Janes, had ignored Peddle's instructions and brought his 6800 design documents to MOS Technology.<ref>Bagnall (2010), p. 53–54. "He [Mike Janes] had all his original work from the 6800 and hid it from Motorola…</ref> In March 1976, the now independent MOS Technology was running out of money and had to settle the case. They agreed to drop the 6501 processor, pay Motorola {{US$|long=no|200}},000 and return the documents that Motorola contended were confidential. Both companies agreed to [[Cross-licensing|cross-license]] microprocessor patents.<ref name="Electronics April 1, 1976">{{Cite journal |title=Motorola, MOS Technology settle patent suit |journal=Electronics |volume=49 |issue=7 |page=39 |publisher=McGraw-Hill |location=New York |date=April 1, 1975}} "MOS Technology Inc. of Norristown, Pa. has agreed to withdraw its MCS6501 microprocessor from the market and to pay Motorola Inc. {{US$|long=no|200000}} ..." "MOS Technology and eight former Motorola employees have given back, under court order documents that Motorola contends are confidential." "…both companies have agreed to a cross license relating to patents in the microprocessor field."</ref> That May, Motorola dropped the price of a single 6800 microprocessor to {{US$|long=no|35}}. By November, [[Commodore International|Commodore]] had acquired MOS Technology.<ref>Bagnall (2010), pp. 55-56</ref><ref name="Mini-Micro Nov 1976">{{cite journal |title=Mergers and Acquisitions |journal=Mini-Micro Systems |volume=9 |issue=11 |page=19 |publisher=Cahners |date=November 1976}}" Commodore International … is buying MOS Technology (Norristown, PA). This saves the six-year-old semiconductor house from impending disaster."</ref>