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GlobalFoundries files lawsuit against IBM over trade secrets, intellectual property

GlobalFoundries has sued IBM, accusing it of disclosing private intellectual property and trade secrets to other parties.

GlobalFoundries claims that IBM illegally divulged to Rapidus, a state-backed Japanese consortium, and Intel its valuable intellectual property and trade secrets, which it obtained after buying IBM’s microelectronics division in 2015.

According to the lawsuit, which was filed in federal court in the Southern District of New York, IBM’s top management characterized cooperation with Rapidus and Intel as depending on technology created over several decades via research at the Albany NanoTech Complex. GlobalFoundries says it believes this IP to be their own since acquiring IBM’s microelectronics unit eight years ago.

GlobalFoundries also alleged that IBM has been recruiting engineers since the Rapidus agreement was revealed in December 2022, with efforts escalating since then. As a result, it is seeking compensatory and punitive damages, as well as an order against IBM to stop utilizing the trade secrets and halt recruiting.

GlobalFoundries launched the complaint after a judge rejected IBM’s effort to dismiss valid fraud and breach of contract charges, according to IBM. It dismissed GlobalFoundries’ charges as unfounded and stated that it was certain the court would agree.

The sources for this piece include an article in Reuters.

IT World Canada Staff
IT World Canada Staffhttp://www.itworldcanada.com/
The online resource for Canadian Information Technology professionals.

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Jim Love, Chief Content Officer, IT World Canada

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