The bitter trade secrets case between TSMC and its lawyers at Keker & Van Nest and SMIC and its lawyers at Wilson Sonsini settled!
SMIC has agreed to pay TSMC $200 million and an undisclosed amount of stock and warrants, Keker partner Jeff Chanin told Legal Pad just now.
TSMC and Keker had won resoundingly during the liability phase with the jury finding that SMIC stole trade secrets and broke a previous settlement agreement. Chanin said that pursuant to stipulations by both parties a judgment was entered in favor of his client TSMC on all claims and counterclaims.
The two sides were in the midst of the damages phase when the court announced the settlement this morning, which you can see for yourself on the handy dandy Courtroom View Network, which was carrying the trial live.
It’s a big win for Keker and TSMC, especially considering that SMIC agreed to pay TSMC $175 million in 2005 to settle trade secret claims. The current suit was brought when TSMC accused SMIC of breaching the settlement agreement by continuing to use the trade secrets in question.
At the same time, $200 million is a lot less than $2 billion, the damages number that was bandied about by TSMC earlier on in the case. Of course, the $200 million doesn’t include the value of the SMIC stock and warrants. We’ll have a full story on this in Tuesday’s Recorder, and online at CalLaw.
— Zusha Elinson