GlobalFoundries is suing IBM for infringement of intellectual property rights and trade secrets


What just happened? GlobalFoundries acquired IBM’s chipmaking business in 2014, and the two companies have been working together for a while. Now, the multinational says that Big Blue is manipulating intellectual property and has no rights to give it to anyone. The New York company sued.

GlobalFoundries recently sued IBM, saying the company illegally shared trade secrets and confidential intellectual property with Rapidus. Big Blue is working with a Japanese consortium to develop cutting-edge microchip technology in a two-nanometer manufacturing process. GlobalFoundries says IBM is violating its IP.

GlobalFoundries advertiser IBM “unfairly receives hundreds of millions of dollars in licensing income and other benefits.” Initially, IBM collaborated with Intel on new-generation chip technology in 2021, which, according to GlobalFoundries, is yet another infringement of their intellectual property rights.

In a written statement sent to Reuters, IBM denied its former partner’s allegations saying that GlobalFoundries had filed a “baseless lawsuit” after the court had previously rejected the company’s attempt to “dismiss fraud claims and breach of IBM’s legitimate contracts.” Intel and Rapidus, the other two companies involved in the GlobalFoundries lawsuit, did not provide comment.

GlobalFoundries and IBM They worked together It has controlled the chip technology for decades, and the former has had exclusive licensing rights over the IP since 2015. The company is seeking monetary compensation, punitive damages, and an injunction against IBM. Moreover, besides divulging its trade secrets to competitors, IBM is apparently trying to recruit GlobalFoundries engineers at an accelerated pace after partnering with Rapidus in December 2022.

Rapidus is a joint initiative of Sony, NEC and other major technology companies backed by Japanese state authorities. It is a national strategic effort for Tokyo to regain its position in the chip manufacturing business by cooperating with American players in the industry. Japan aims to ensure that automakers and IT companies have enough components in their supply chain to avoid new chip shortages in the future.

GlobalFoundries already tried to sue IBM in 2021, when Big Blue claimed the chip foundry owed $2.5 billion in damages. GlobalFoundries asked the judge to dismiss the breach of contract charge. That lawsuit is still ongoing.


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