A California jury found that Semiconductor Manufacturing International Corporation (SMIC) breached its 2005 settlement agreement with Taiwan Semiconductor Manufacturing Company (TSMC) and misappropriated TSMC trade secrets. TSMC dates the verdict to November 4, 2009, after a two-month trial. The companies later settled; the reported $200 million was part of that settlement, not a jury damages award.
What the jury decided
In TSMC’s California action against SMIC, the jury found that SMIC breached the parties’ 2005 settlement agreement and misappropriated TSMC trade secrets. TSMC’s 2009 annual report says the verdict came on November 4, 2009, following a two-month trial. TSMC’s 2009 annual report records the company’s account of the verdict.
![Book of Secrets,the [Deluxe]](https://m.media-amazon.com/images/I/41MEAB1KR2L._SL160_.jpg)
Secondary case coverage from Courtroom View Network reports that TSMC prevailed on 61 of 65 trade-secret claims. The exact verdict form was not located, so that count should be treated as secondary reporting rather than a breakdown of the jury’s individual findings.
Why the $200 million figure was not a jury award
The verdict concerned liability. Afterward, the parties reached a negotiated settlement covering their California and Beijing matters. In its November 10, 2009 announcement, TSMC said SMIC would make $200 million in additional cash payments, plus provide other consideration. TSMC said this amount was on top of $135 million previously paid under the 2005 settlement. Those are settlement terms, not a damages figure awarded by the jury. TSMC’s settlement announcement describes the agreement.
Quick wins for a faster PC:
Scan for outdated or missing drivers - takes under a minuteDriver Scan →Clear out junk files and repair common Windows errorsFree Scan →Fix the driver behind crashes, sound loss and screen glitchesFind Drivers →#1 Best Overall
The agreement also provided for a stipulated judgment in TSMC’s favor in the California case, dismissal of SMIC’s Beijing appeal, and termination of the 2005 patent cross-license. The available sources do not establish a separate jury-assessed damages award before settlement.
How the dispute reached the verdict
- January 30, 2005: TSMC announced an earlier settlement with SMIC that included a $175 million payment and a patent cross-license through December 2010. TSMC said that agreement did not license SMIC to use TSMC trade secrets. TSMC’s 2005 announcement describes those terms.
- 2006: TSMC brought the California action concerning alleged misappropriation and breach of the 2005 settlement.
- November 4, 2009: The jury found for TSMC on breach of the settlement agreement and trade-secret misappropriation, according to TSMC’s annual report.
- November 10, 2009: TSMC announced the later settlement of the California and Beijing matters, including the additional payments and other agreed terms.
What TSMC said about the settlement
TSMC chairman Dr. Morris Chang said the company was pleased to have “amicably resolved all of our pending litigation with SMIC in California and Beijing” and to have “fully protected TSMC’s valuable trade secrets and technologies.” That statement is TSMC’s characterization of the settlement, not a separate court finding.
Quick Recap
Best Value
- Used Book in Good Condition
Rank #3
Rank #2
Product prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on Amazon at the time of purchase will apply.
