Case Analysis: Taiwan Semiconductor Manufacturing Co. v. Semiconductor Manufacturing International Corporation Name: Po-Lin Chiang
MBA 511: Law for Global Business
Instructor: Robert Richards
Date: March 7, 2013
Every trade act can cause many different issues. As a result, every company needs laws to protect their right when they are doing with other. In addition, every country has different law for these business acts. People need to deeply understand the causes and consequences of these problems, in order to avoid breaking the law during their business act. Here I’m going to analysis a case happened in the US District Court of Northern California.
In December 2003, A Taiwan Semiconductor Manufacturing Co.’s (TSMC) terminated employee, a suspected who transferred the wafer processing of confidential information to Semiconductor Manufacturing International Corporation (SMIC). SMIC was registered to conduct business in California; also TSMC had a subsidiary in the state. As a result, TSMC was sued SMIC in U.S. court because it was violated the trade secrets. In this pleading, TSMC was sued SMIC because SMIC was violated trade secrets’ improperly by the job-hopping employee. Also, TSMC was filed for an injunction sanction and indemnification (Mcguiness, 2008). First of all, TSMC and SMIC were resolved those action in 2005 in a comprehensive settlement agreement. In this settlement agreement, SMIC should indemnify one hundred seventy-five million U.S. dollars to TSMC. Secondly, TSMC did not grant the right to use trade secrets for SMIC. TSMC agree with no longer prosecute about SMIC improper use of trade secrets. Then TSMC will revoke this litigation in the U.S. federal courts, the U.S. District Court in California, the United States International Trade Commission and the Hsinchu District Court. TSMC also remains a right of litigation if TSMC breach of contract (Clendenin, 2004). Intellectual property rights
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