Jury Finds in TSMC's Favor in TSMC vs. SMIC Trade Secrets Trial
TSMC has won a nearly complete victory in the trade secrets trial ongoing in Oakland, Calif. After deliberating for several days, the 12-member jury delivered a verdict Tuesday morning, finding in TSMC's favor on the major issues. The damages phase of the trial begins Thursday and is expected to go to the jury early next week.
David Lammers, News Editor -- Semiconductor International, 11/3/2009
The jury in the two-month-long TSMC vs. SMIC trade secrets trial ruled in TSMC's favor this morning after several days of deliberation. The jury found that SMIC has been misappropriating TSMC's trade secrets since a 2005 legal settlement was reached between the two foundries.
Jeffrey Chanin, lead attorney for the law firm representing Taiwan Semiconductor Manufacturing Co., said that the jury found that Semiconductor Manufacturing International Corp. (Shanghai) breached the settlement "in all the ways that TSMC has alleged, and that TSMC did attempt in good faith to resolve SMIC's breaches before filing this lawsuit," claiming breach and misappropriation. "SMIC's cross-claims for breach of the settlement and bad faith were rejected. The jury was polled and was unanimous in its decision," he said.
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The second phase of
the trial to determine harm and damages begins on Thursday. Chanin said the
damages claim is expected to go to the jury next Monday or Tuesday.
Brian Ferrall, an attorney at Keker and Van Nest (San Francisco) representing TSMC, said the jury ruled in TSMC's favor on 19 of 20 questions, with the jury unanimous on nearly all questions. "The jury was not unanimous as to all questions it answered. As to Question 9, two of the 12 jurors were not in agreement with the rest of the jury's decision," Ferrall said. TSMC had claimed that 65 different trade secrets were misappropriated by SMIC, and the jury ruled in TSMC's favor on 61 of the 65 trade secrets contested in the trial. The jury had deliberated since last Wednesday.
The jury trial is being broadcast by the Courtroom View Network (CVN, New York), largely on a pay-per-view basis.
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