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GlobalFoundries Files Lawsuit Against IBM to Protect its Intellectual Property and Trade Secrets

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GlobalFoundries (GFS) has filed a lawsuit against IBM for alleged trade secret misappropriation, claiming IBM unlawfully disclosed GF's confidential intellectual property to partners including Intel and Japan's Rapidus. This lawsuit, filed in the Southern District of New York, stems from a 2015 sale of IBM's microelectronics business to GF. GF argues that IBM is unjustly profiting from licensing income exceeding hundreds of millions by leveraging technology that GF claims to exclusively own. The complaint also highlights IBM's recruitment efforts aimed at attracting GF's engineering talent, intensifying post the IBM/Rapidus partnership announcement. GF seeks compensatory and punitive damages, alongside an injunction against further disclosures of its trade secrets.

Positive
  • GlobalFoundries is taking a strong legal stance to protect its intellectual property, potentially strengthening its position in the semiconductor market.
  • The lawsuit may deter other companies from attempting similar unlawful disclosures of GF's technology.
Negative
  • The lawsuit may lead to prolonged legal battles, diverting resources and focus away from core business operations.
  • Recruitment of GF's engineering talent by IBM could impact GF's operational capabilities and innovation potential.

Accuses IBM of unlawful disclosure to Intel, the Japanese consortium Rapidus and others

MALTA, N.Y., April 19, 2023 (GLOBE NEWSWIRE) -- GlobalFoundries (NASDAQ: GFS) (GF) today sued IBM for trade secret misappropriation. The complaint asserts the former semiconductor manufacturing company has unlawfully disclosed GF’s confidential IP and trade secrets, after IBM sold its microelectronics business to GF in 2015. The technology at issue was collaboratively developed, over decades, by the companies in Albany, New York and the sole and exclusive right to license and disclose that technology was transferred to GF upon the sale.

In the legal action filed in federal court in the Southern District of New York, GF asserts that IBM unlawfully disclosed GF IP and trade secrets to IBM partners including Intel and Japan’s Rapidus, a newly formed advanced logic foundry, and by doing so, IBM is unjustly receiving potentially hundreds of millions of dollars in licensing income and other benefits.

The complaint notes that IBM’s executives have described the Intel and Rapidus partnerships as based on decades of technology derived from research conducted at the Albany NanoTech Complex, technology that they had no right to disclose. It also raises concerns over the extent to which IBM may have unlawfully disclosed GF’s IP and trade secrets beyond these two heavily publicized partnerships.

GF is asking for compensatory and punitive damages as well as an injunction against IBM preventing further unlawful disclosure and use of GF’s trade secrets.

In addition, GF’s complaint asserts that IBM is targeting and recruiting GF’s world-class engineering talent at the company’s manufacturing facility, which is located near the Albany NanoTech Complex. In the complaint, GF asks the court to end the unlawful recruitment efforts, which have accelerated since the IBM/Rapidus announcement in December 2022.

GF has made significant investment in research and development to advance its feature-rich technology and is one of the world’s leading semiconductor foundries with a global footprint and more than 13,000 employees, 2,500 of whom are based at the company’s headquarters in upstate New York. GF will aggressively defend its investments in technology against those who violate them, as the complaint demonstrates IBM has repeatedly done.

About GF
GlobalFoundries (GF) is one of the world’s leading semiconductor manufacturers. GF is redefining innovation and semiconductor manufacturing by developing and delivering feature-rich process technology solutions that provide leadership performance in pervasive high growth markets. GF offers a unique mix of design, development and fabrication services. With a talented and diverse workforce and an at-scale manufacturing footprint spanning the U.S., Europe and Asia, GF is a trusted technology source to its worldwide customers. For more information, visit www.gf.com

©GlobalFoundries Inc., GF, GlobalFoundries, the GF logos and other GF marks are trademarks of GlobalFoundries Inc. or its subsidiaries. All other trademarks are the property of their respective owners. 

Forward-looking Information
This news release may contain forward-looking statements, which involve risks and uncertainties. Readers are cautioned not to place undue reliance on any of these forward-looking statements. These forward-looking statements speak only as of the date hereof. GF undertakes no obligation to update any of these forward-looking statements to reflect events or circumstances after the date of this news release or to reflect actual outcomes, unless require by law. 

Media contact
Erica McGill
erica.mcgill@gf.com
518-795-5240


FAQ

What are the allegations against IBM made by GlobalFoundries in the lawsuit?

GlobalFoundries alleges that IBM unlawfully disclosed GF's confidential intellectual property and trade secrets to partners including Intel and Rapidus.

What is GlobalFoundries seeking from the lawsuit against IBM?

GlobalFoundries is seeking compensatory and punitive damages as well as an injunction to prevent further unlawful disclosures of its trade secrets.

How could the lawsuit affect GlobalFoundries' operations and market position?

The lawsuit could either enhance GlobalFoundries' position by protecting its intellectual property or lead to distractions and resource allocation issues due to prolonged legal battles.

What is the basis of GlobalFoundries' claims against IBM regarding technology?

The basis of the claims is that the technology at issue was collaboratively developed and transferred exclusively to GlobalFoundries upon the sale of IBM's microelectronics business in 2015.

What impact could IBM's recruitment of GlobalFoundries’ talent have?

IBM's recruitment efforts could potentially diminish GlobalFoundries' operational capabilities and innovation by attracting key engineering talent away from the company.

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