Chip Maker Loses One by Default

October 8, 2014 - photo frame

     SAN FRANCISCO (CN) – Tech workers who schemed to take controller chip record and defected to a competing company, garnering “virtually overnight” success, have mislaid a authorised conflict by default, a sovereign decider ruled Monday.
     VIA Technologies and VIA Labs sued ASUS Computer International, ASUSTeK Computer and ASMedia Technology, in Aug in San Francisco.
     Chewei Lin, VIA’s onetime president, left a association in 2007 to offer as boss and executive of ASMedia Technology.
     “Dozens of other VIA employees, including comparison product managers and RD engineers, also assimilated ASM during around a same time, including Chi Chang, who is now a conduct of investigate and growth during ASM,” VIA claimed.
     “On information and belief, a infancy of stream ASM analog designers, prolongation control staff, and product managers are from VIA. As a outcome of ASM’s mass raiding of VIA’s employees, a former employees of VIA who assimilated ASM collectively had believe of almost all of VIA’s trusted trade tip information relating to USB 3.0 Technology, including heart controller chips, horde controller chips, and device controller chips.”
     VIA claimed that an inner review suggested that former VIA employees who assimilated ASM “downloaded and printed countless circuit diagrams for high speed controller integrated circuits (ICs) from VIA’s workstations” while employed by VIA. “Prior to a emigration of VIA’s former employees to ASM in 2007, ASM had no imagination in a high-speed I/O margin during all, including with a bequest USB 1.0/1.1/2.0 technologies vicious to implementing a USB 3.0 protocol. Rather, ASM’s strange business given a first in 2004 was creation digital print frames,” a censure states.
     “Nevertheless, in 2008, shortly after luring divided VIA’s former employees, ASM announced that it would start to rise high speed I/O products, including USB 3.0 products and was means to take USB 3.0 device controller chips into mass prolongation in 2009, approximately one year later. In 2010, ASM also launched USB 3.0 horde controller chips. In Jan 2011, ASM, who formerly had usually sought heading insurance for outlines used in tie with a slight subset of digital print frame-related products and accessories, filed applications in both Taiwan and a United States to register a heading for use in tie with a far-reaching operation of ICs and high speed I/O products,” according to a complaint.
     Taiwanese investigators unclosed a intrigue in an central investigation, VIA said.
     “VIA’s inner review and rapist investigations by prosecutors in Taiwan unclosed a intrigue hatched by defendants in during slightest as early as 2007 to duplicate VIA’s important success in a growth of USB technology, and boost their possess flagging sales during VIA’s expense, by inducing several VIA employees – including a then-VIA clamp boss Chewei Lin – to take VIA’s rarely trusted and exclusive trade tip information relating to USB 3.0 controller chip technology, and forsake to high-level positions with a defendants,” a association pronounced in a lawsuit.
     The “mass burglary and defection” launched a defendants from a squalid digital print support manufacturer to builder of “complex” mechanism chips “virtually overnight,” VIA said.
     “As a outcome of this mass burglary and defection, ASM went from being a digital print support manufacturer with no USB-related products to mass writer of formidable USB 3.0 chips probably overnight, a rarely questionable business that stirred a Taiwanese prosecutors now posterior rapist charges opposite ASM and a employees to state that ‘it is intensely formidable to rise and take such chips into mass prolongation in such a brief time support [of one year between ASM’s proclamation of a vigilant to start building high-speed I/O products in 2008, and a pierce to mass prolongation in 2009].’ This sudden change in ASM’s product concentration also coincided with a noted alleviation in a financial situation, whereby it went from carrying reduction than US $10M in sales and stating net handling waste for during slightest 3 uninterrupted years starting in 2007, to some-more than doubling a sales and stating certain net handling income starting in 2010.” (Brackets in complaint.)
     VIA sought an injunction, disgorgement and costs for obvious infringement, trade tip misappropriation and astray competition.
     “By misappropriating and infringing VIA’s egghead property, defendants have willfully and maliciously disregarded VIA’s rights in a trade secrets and patents and intent in astray competition,” a association said.
     Default visualisation was entered opposite a defendants Monday. 

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