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Austin company wins lawsuit over trade secret infringement

Statesman.com

An Austin-based startup, Silicon Space Technology Corp., has won an $18 million jury award in a lawsuit that accused chip maker LSI Logic Corp. of stealing its trade secrets.

After a three-week trial, a Travis County jury found that LSI had violated the Texas Theft of Trade Secrets Act when it took the Austin company's technology for hardening integrated circuits against cosmic radiation.

Protecting electronic circuits from radiation and particle bombardment is required for satellites and could become more important for advanced Earth-based systems that employ more advanced semiconductor devices. Silicon Space says its technology is less expensive than current methods.

The company claimed in its lawsuit that it had preliminary discussions with LSI officials in 2004 about licensing its technology. After those discussions broke off, Silicon Space learned that LSI had continued to try to use the technical information the Austin company had provided, despite giving assurances that it would not, the company said.

During the trial, Silicon Space was issued a U.S. patent covering part of its technology.

Attorney Jim George, who represented Silicon Space, said the jury verdict substantiates the startup's ownership of the technology and opens the way for licensing its know-how to other chip makers.

At least one other chip maker has expressed an interest in a licensing deal, George said.

LSI Logic did not return calls for comment.

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