Court Finally Awards ASML $845 Million in Damages and an Injunction

On May 3, 2019, following a jury verdict rendered months earlier, a California court entered a final judgment for $845 million in favor of semiconductor maker, ASML, in its suit against rival, XTAL, for stealing trade secrets related to ASML’s lithography technology.

This judgment followed a jury award last year, which had included the potential for punitive damages because the jury found XTAL’s conduct to be malicious. The final judgment, which also reimbursed AMSL for costs relating to its investigation of XTAL’s theft, was delayed until now because XTAL filed bankruptcy before the trial court could enter judgment. Although XTAL is in bankruptcy, impairing AMSL’s ability to collect on this large judgment, AMSL will receive most, if not all, of XTAL’s intellectual property under a settlement agreement arising out of the bankruptcy. 

Damages aside, ASML also obtained an injunction prohibiting XTAL from conducting any software development activities on products contaminated by ASML’s stolen trade secrets; authorizing ASML to contact XTAL’s potential or existing customers to notify them of the outcome of the case, and prohibiting XTAL from working in this field for some time. 

TIP: Damages in trade secret cases can be significant, as demonstrated by this case, which underscores the importance of companies taking proactive steps to be ready to effectively respond if theft occurs.