• Jul 18 2018
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  • Category: CAFC Updates

Texas Advanced Optoelectronic Solutions, Inc., (TAOS) and Intersil Corporation each develop and sell ambient light sensors, which are used in electronic devices to adjust screen brightness in response to incident light. In the summer of 2004, the parties confidentially shared technical and financial information during negotiations regarding a possible merger. The parties ultimately went their separate ways, but soon after, Intersil released new sensors with the technical design TAOS had disclosed in the confidential negotiations. TAOS then sued Intersil for patent infringement, as well as for trade secret misappropriation, breach of contract, and tortious interference with prospective business relations under Texas state law. A jury returned a verdict for TAOS and awarded damages on all four claims. The court ruled on the parties’ post-trial motions and entered final judgment, and both parties appealed. The CAFC affirms liability for trade secret misappropriation and liability for patent infringement for certain claims, reverses the verdict of infringement for other certain other claims, vacates the monetary awards, and remands.

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