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Wednesday 4 November 2009, 1:57 PM
US jury finds SMIC stole trade secrets
A California jury ruled on Wednesday that Semiconductor Manufacturing International Corp (SMIC) stole and used trade secrets from rival company Taiwan Semiconductor Manufacturing Co (TSMC), according to Reuters.
The news agency reported that SMIC's actions could cost the company $1bn (£608.9m) in damages.
The jury also found SMIC guilty of breaching the terms of a 2005 settlement which was drawn up after TSMC sued its rival for theft of trade secrets and patent infringement over chip sales in California in 2003. SMIC had agreed to pay $175m, surrender all TSMC documents, stop using TSMC technology and processes to make its chips and not disclose trade secrets, Reuters said.
TSMC also granted SMIC a six year patent licence on the condition that no breach of the settlement occurred. According to Reuters, SMIC did not return the documents in question and disclosed some of TSMC's trade secrets in a patent application, prompting the filing of the current lawsuit in 2006.
TSMC's lawyer, Jeffrey Chanin, told Reuters that TSMC is also asking the judge at Alameda County Superior Court to permanently bar SMIC from selling the contested products in the United States.
The jury is expected to consider damages next week, and Superior Court Judge Steven Brick will rule on the request for a permanent injunction after the jury makes a decision.
SMIC has pending claims against TSMC for misappropriation of trade secrets that will be tried in a separate case.
The news agency reported that SMIC's actions could cost the company $1bn (£608.9m) in damages.
The jury also found SMIC guilty of breaching the terms of a 2005 settlement which was drawn up after TSMC sued its rival for theft of trade secrets and patent infringement over chip sales in California in 2003. SMIC had agreed to pay $175m, surrender all TSMC documents, stop using TSMC technology and processes to make its chips and not disclose trade secrets, Reuters said.
TSMC also granted SMIC a six year patent licence on the condition that no breach of the settlement occurred. According to Reuters, SMIC did not return the documents in question and disclosed some of TSMC's trade secrets in a patent application, prompting the filing of the current lawsuit in 2006.
TSMC's lawyer, Jeffrey Chanin, told Reuters that TSMC is also asking the judge at Alameda County Superior Court to permanently bar SMIC from selling the contested products in the United States.
The jury is expected to consider damages next week, and Superior Court Judge Steven Brick will rule on the request for a permanent injunction after the jury makes a decision.
SMIC has pending claims against TSMC for misappropriation of trade secrets that will be tried in a separate case.
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