Trade Secrets Make Great Messes

Trade secret disputes are the worst.  I read about a recent dispute in Texas where Texas Advanced Optoelectronic Solutions Inc. (TAOS) sued and was awarded $57 Million against Intersil Corp.  The dispute was over a technology that allows video displays to automatically adjust their brightness based on ambient light around them.

While that verdict may have settled the score, consider that the dispute arose over acquisition negotiations back in 2004.  For eleven years (seven in active litigation) the parties have been fighting.  Back in 2004, the parties entered into negotiations for Intersil to purchase TAOS and entered into a confidentiality agreement. However, the negotiations broke off.  About a year later, Intersil entered the market with its own product (and apparently, all of TAOS' confidential information).