"Our response is that there was no patent infringement," said Sim.
Cray's court response further states ISR's patent is invalid because it wasn't new or unique.
Attorney Mark Hendricksen, representing ISR, said a trial set for early 2004 will determine the amount of damages.
He also said Cray's contention that ISR's patents are invalid is a standard defense in such lawsuits.
"A defendant (in a patent suit) without exception always states that the patent is invalid," said Hendricksen.
The suit alleges that Cray is using technology that ISR had earlier shared with Silicon Graphics Inc. SGI, based in California, makes high-performance computers.
In 2000, a Seattle company, Tera Computer, bought the Cray Research Division from SGI, then renamed itself Cray Inc. It began selling super-fast computers to the U.S. government and other large agencies.
The suit says, "Cray has moved forward with an evaporative spray cooling system which includes pre-existing technology protected by the patents of ISR."
That product development, according to the suit, only occurred because former SGI workers used ISR's processes in building the Cray X1.
There have been talks about a settlement, Hendricksen said. But both sides are moving forward, anticipating a trial next March, he said.