ams Osram Wins Trade Secrets Case After 17 Years, Loses Money

After 17 years of legal battles, ams-Osram in Austria has emerged victorious in a case against Renesas Electronics, albeit with a reduced settlement amount following an appeal. The case, which involved allegations of trade secrets theft, breach of contract, and patent infringement, was finally settled for $51.7 million after a recent appeal hearing. Originally settled in 2015 for over $58 million, the previous verdicts were set aside, leading to the revised settlement.

The contentious litigation traces back to 2008 when merger discussions between Texas Advanced Optoelectronic Solutions (TAOS) and Intersil fell through. During these discussions, TAOS shared proprietary technology with Intersil under a confidentiality agreement, including a dual photodiode array structure for filtering infrared light in sensors. The dispute escalated with accusations that Intersil utilized confidential pricing information to secure supply contracts for products like the second-generation iPhone 3G and iPod Touch, allegedly undercutting TAOS in the process.

Lead lawyer Jamil Alibhai from law firm Munck Wilson at the time remarked, “Intersil had the opportunity and ability to buy TAOS but instead chose to embark on a course of conduct that involved lying, cheating, and stealing.” The legal saga continued as TAOS was acquired by ams OSRAM in 2011, while Intersil was later acquired by Renesas in 2017. Despite Intersil certifying the destruction of confidential materials, ams-Osram contended that a competing product incorporating TAOS trade secrets led to substantial business losses, including supply contracts.

The 2015 verdict initially awarded $48.7 million in damages for trade secret misappropriation and an additional $10 million in punitive damages. However, the breach of contract claim was dismissed, prompting ams-Osram to file an appeal. “We knew this would be a fight — and we never backed down,” emphasized William Munck, global managing partner of Munck Wilson Mandala. “This case was about protecting our client’s hard-earned innovations from a party that stole and profited from them.”

Michael McCabe, lead counsel for the ams OSRAM team and co-chair of Munck Wilson Mandala’s litigation group, hailed the victory as a testament to their intellectual property expertise and collaborative efforts. Rainer Irle, chief financial officer at ams OSRAM, expressed satisfaction with the outcome, commending the legal team led by Franz Fazekas, Head of Legal Global, for their unwavering support over the lengthy legal battle. “This decision affirms our long-standing commitment to protecting innovation and upholding the integrity of our intellectual property,” Irle stated.