Computer Rivals Sue Each Other

Packard Bell Electronics Inc. filed a countersuit against rival Compaq Computer Corp. on Tuesday charging unfair competition, defamation and false advertising.

The lawsuit filed in federal court in Delaware followed a suit by Compaq against Packard Bell earlier this year.

Compaq, based in Houston, is the world’s largest maker of personal computers. Packard Bell, of Sacramento, is No. 1 in personal computer sales in the U.S. market.

Compaq attorney William Coston said the Packard Bell suit has no factual or legal merit.

“It’s a diversionary tactic to distract the public from Packard Bell practices that have been exposed,” Coston said.

Packard Bell accused Compaq of falsely describing both firms’ policies regarding various practices, including returned computers. Packard Bell is seeking reimbursement for loss of income, punitive damages, and a court order requiring Compaq to run corrective advertising.