VLIW Technology, Inc. v. Hewlett-Packard Company and STMicroelectronics, Inc.

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VLIW Technology (VLIW) sued Hewlett-Packard and STMicroelectronics, alleging that they had misappropriated its trade secrets related to a compiler, which had been licensed by VLIW’s predecessor, Multiflow, to Hewlett-Packard.

Retained by Richards, Layton & Finger

VLIW Technology (VLIW) sued Hewlett-Packard and STMicroelectronics, alleging that they had misappropriated its trade secrets related to a compiler, which had been licensed by VLIW’s predecessor, Multiflow, to Hewlett-Packard. Hewlett-Packard later collaborated with STMicroelectronics on new compiler technology, and entered into a technology license and development agreement. VLIW claimed lost license revenue based on the terms of the new agreement, as well as unjust enrichment—asserting that Hewlett-Packard and STMicroelectronics would have had to repeat Multiflow’s research and development efforts to replace its compiler.

The Delaware Court of Chancery dismissed its action on summary judgment.

Counsel for STMicroelectronics retained Mary Woodford, a vice president of Cornerstone Research, to address VLIW’s damages claims. She determined lost license revenues based on Multiflow’s licenses rather than the later license and development agreement. She also rebutted VLIW’s unjust enrichment theory on the basis that Multiflow had previously licensed its compiler to Hewlett-Packard. VLIW did not appeal after the Delaware Court of Chancery dismissed its action on summary judgment.

Case Expert

Mary A. Woodford

Senior Advisor, Cornerstone Research