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ARTICLE · 15 AUGUST 2025

Huge Export Penalty For U.S. Technology Company

Bass, Berry & Sims PLC
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On July 28, various arms of the U.S. government announced concurrent export enforcement resolutions involving Cadence Design Systems, Inc. (Cadence), a California...

GlobalInternational Law
Faith Dibble
Faith Dibble
Thaddeus R. McBride
Thaddeus R. McBride

On July 28, various arms of the U.S. government announced concurrent export enforcement resolutions involving Cadence Design Systems, Inc. (Cadence), a California-based software and technology firm. Cadence will pay over $140 million in combined net criminal and civil penalties and forfeiture.

Involving the U.S. Attorney's Office for the Northern District of California (NDCA), the Counterintelligence and Export Control Section (CES) of National Security Division of the Department of Justice (DOJ), and the Department of Commerce, Bureau of Industry and Security (BIS), the resolutions focus on misconduct by a small number of employees at an indirectly owned and wholly controlled Chinese subsidiary of Cadence (Cadence China). The government asserted that those employees knowingly and willfully transferred hardware, software, and technology to entities in China in violation of the U.S. Export Administration Regulations (EAR). The EAR, administered by BIS, are the main

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