MSI Data Corp., a Costa Mesa electronics manufacturer struggling to regain momentum after sagging sales gave it its first annual loss in a decade, has sued its major competitor for alleged patent infringement, the second lawsuit between the two hotly competing companies in the last seven months.
The MSI suit, filed Tuesday in U.S. District Court in Los Angeles, charges Telxon Corp. of Akron, Ohio, with using MSI-patented technology in the best selling of Telxon's portable inventory counting devices.
In March, Telxon sued MSI for $100 million, alleging that MSI paid a former Telxon employee $24,000 to obtain Telxon's European customer lists, marketing strategies and pricing schedules. MSI has denied the charges.
Although the amount of damages MSI is seeking in its suit was not specified, the company asked the court to order Telxon to stop making and selling devices that allegedly use MSI's technology. Telxon officials declined to comment on the suit.