7 May 2019

ASML wins $845m in trade secrets theft suit against bankrupt Xtal

Dutch semiconductor company  ASML has been awarded an injunction and $845 million in damages in a trade secrets theft suit against US-based software company Xtal.

In a  statement on Saturday May 4, ASML said the  Santa Clara County Superior Court had finalised a verdict which was returned by a jury in November 2018.

The jury found Xtal had stolen ASML’s trade secrets, induced former ASML employees to breach their contacts and aided and abetted them to breach their fiduciary duty of loyalty.

It also found Xtal had violated California’s Computer Data Access and Fraud Act.

ASML said the award of $845 million will be uncollectible as Xtal is in bankruptcy, but under a settlement agreement it will now own “most, if not all” of Xtal’s IP.

Under the injunction, Xtal is unable to carry out any software development activities on its software products that feature ASML’s IP.

The injunction also grants ASML permission to contact Xtal’s customers and inform them of the jury’s verdict.

ASML said the settlement agreement “provides certainty and brings closure to all the proceedings between the parties, including the trial court, appellate court, bankruptcy court, and arbitrations”.

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