TSMC v. SMIC
Trial
09/08/09 – 11/09/09
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 Number
- RG06286111
- Industry
- Technology
- Practice Area
- Intellectual Property, Trade Secrets, Science and Computer Technologies Law, Patents
- Lay Witnesses
- Cassidy, Mr. Richard
- Chanroo, Mr. Keith
- Chen, Mr. Steven
- Chen, CHIOUNG
- Chen, I.C.
- Cheng, Mr. Murphy
- Chi, Mr. Min-Hwa
- Chi, Chris
- Chiang , Mr. Bruce
- Chou, Mr. Chien Wei
- Chu, Mr. Wen
- Chun, Ms. Anne
- Fan, Dr. Alan
- Feng Tsai, Mr. Meng
- Fong, Joyce
- George, Thomas
- Hover-Smoot, Mr. Scott
- Hsay, Mr. Ming
- Kuan, Dr. Wen Han
- Kung, Mr. Garreth
- Lim, Mr. C.M.
- Lin, Ms. LC
- Ling, Lydia
- Liu, Dr. Yung "Arthur"
- Liu, Mr. Steven
- Liu, David
- Mora, Mr. Marco
- Paulson, Mr. Bradford
- Shih, Dr. J.R.
- Shin, Denis
- Shiui, Ms. R.Y.
- Simonton, Mr. Robert
- Sun, Dr. Jack
- Thurston, Dr. Richard
- Tsu, Mr. Robert
- Wang, Dr. Jarvis
- Wang, Dr. Samuel
- Wu, Stephen
- Yen , Mr. David
- Yih, Mr. Thomas
- Young, Dr. Konrad
- Yu, Mr. T.C.
- Zhou, Mr. Chao Feng
Sessions
Recording Disclaimer: This proceeding was recorded in full.