TSMC v. SMIC

SETTLED

Trial
09/08/09 – 11/09/09

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Summary

Trade secrets jury trial in Alameda Superior Court's complex litigation division.

On August 25, 2006, Taiwan Semiconductor Manufacturing Company (TSMC), which claims to be the world's largest dedicated semiconductor foundry, sued Semiconductor Manufacturing International Corporation (SMIC) for breach of a settlement agreement, breach of promissory notes, and trade secret misappropriation.

TSMC's complaint accused SMIC of "massive corporate espionage" and claimed that SMIC "lavishly copied the information it stole from TSMC, word for word...and even typographical error for typographical error." TSMC alleged that SMIC incorporated TSMC trade secrets in the manufacture SMIC's 0.13 micron or smaller process products. TSMC further alleged that the alleged breach terminated TSMC's patent license made ineffective the covenant not to sue with respect to SMIC's larger process products.

TSMC is seeking over $1B in damages.

After the liability phase of the trial, the jury found in favor of TSMC on 61 of 65 trade secret claims.

The case settled during the damages phase, allegedly for $200M in cash and an undisclosed amount of stock.

View free video clips from the case:
Plaintiff's opening statement -- Clip 1
Direct Examination of Expert Witness, Charles Powell, by Plaintiff's Attorney, Bob Schuster -- Clip 2
Verdict Session -- Clip 3

Outcome

Settled

Case Information
Attorneys
Witnesses

Sessions

PM Session
Not in Session
0 Chapters
SEP
9
PM Session
Not in Session
0 Chapters
SEP
17
AM Session
Not in Session
0 Chapters
SEP
28
AM Session
Plaintiff Witness(es)
1 Chapters
OCT
5
PM Session
Not in Session
0 Chapters
OCT
14
AM Session
Defense Witness(es)
1 Chapters
AM Session
Defense Witness(es)
2 Chapters
AM Session
Defense Witness(es)
1 Chapters
AM Session
Defense Witness(es)
1 Chapters
OCT
19
AM Session
Defense Witness(es)
2 Chapters
AM Session
Defense Witness(es)
1 Chapters
OCT
20
AM Session
Verdict
1 Chapters
NOV
3
NOV
6
AM Session
Plaintiff Witness(es)
1 Chapters
NOV
9

Recording Disclaimer: This proceeding was recorded in full.

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