Silvaco Data Systems v. Cypress Semiconductor Corp.

The plaintiff is a maker of electronic design automation (EDA) software used to design integrated circuits (chips). The defendant is a manufacturer of chips used in a wide variety of devices, ranging from iPods to hotel door locks. In a previous matter filed by Silvaco, a court ruled that another EDA software company, CSI, had stolen Silvaco’s software, incorporated the software into its own products, and had then sold those products to chip manufacturers such as Cypress. Cypress was given notice of the court’s ruling and the settlement that gave Silvaco ownership of those CSI products. Such ownership meant that purchasers of CSI’s products containing Silvaco’s software had to obtain a license from Silvaco for continued use of those products. Silvaco alleges that Cypress has continued to use those CSI products without obtaining a license. Econ One was retained by counsel for Silvaco to evaluate Silvaco’s actual loss and any unjust enrichment received by Cypress. Jeff Leitzinger provided deposition testimony and the case is scheduled for trial in 2008.