GlobalFoundries Charges IBM For Leaking Trade Secrets To Partners Like Intel, Rapidus - GLOBALFOUNDRIES (NASDAQ:GFS), IBM (NYSE:IBM)

On April 19, GlobalFoundries Inc GFS prosecuted International Business Machines Corp IBM for trade secret misappropriation.
IBM unlawfully disclosed GF's confidential IP and trade secrets after IBM sold its microelectronics business to GF in 2015, per the complaint.
The technology at issue was collaboratively developed, over decades, by the companies in Albany, New York.
GF alleged that IBM disclosed GF IP and trade secrets to IBM partners, including Intel Corp INTC and Japan's Rapidus, thereby receiving potentially hundreds of millions of dollars in licensing income and other benefits.
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 sought compensatory and punitive damages and 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 near the Albany NanoTech Complex.
GF asks the court to end the unlawful recruitment efforts, which have accelerated since the IBM and Rapidus announcement in December 2022.
In 2022, IBM and Rapidus announced a joint development partnership to advance logic scaling technology as part of Japan's initiatives to become a global semiconductor research, development, and manufacturing leader.
Rapidus and IBM planned to further develop IBM's breakthrough 2-nm node technology for implementation by Rapidus at its fab in Japan.
On April 19, IBM reported mixed first-quarter financial results.
IBM said first-quarter revenue increased 0.4% year-over-year to $14.25 billion, which missed average analyst estimates of $14.35 billion.
The company reported first-quarter earnings of $1.36 per share, beating consensus estimates of $1.26 per share.
Price Action: IBM shares traded higher by 1.20% at $127.84 on the last check Thursday.

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