By Eric Lai

Ratcheting up the already hard-fought competition in the instant-on market, Phoenix Technologies Ltd. is suing next-door rival DeviceVM Inc. for trade secret theft and a former employee now at DeviceVM for breach of contract.

Milpitas, Calif.-based Phoenix claims that San Jose-based DeviceVM is using Phoenix's proprietary information in the latter's popular Splashtop software, which allows PCs to skip the Windows boot-up and run software within seconds via Splashtop.

Phoenix, which offers the competing HyperSpace platform, claims that trade secrets were passed to DeviceVM via an employee, Benedict Chong.

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