Uniram Technology, Inc. v. Taiwan Semiconductor Manufacturing Co.

617 F. Supp. 2d 938, 2007 U.S. Dist. LEXIS 67863, 2007 WL 2572225
CourtDistrict Court, N.D. California
DecidedSeptember 5, 2007
DocketC-04-1268 VRW
StatusPublished
Cited by13 cases

This text of 617 F. Supp. 2d 938 (Uniram Technology, Inc. v. Taiwan Semiconductor Manufacturing Co.) is published on Counsel Stack Legal Research, covering District Court, N.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Uniram Technology, Inc. v. Taiwan Semiconductor Manufacturing Co., 617 F. Supp. 2d 938, 2007 U.S. Dist. LEXIS 67863, 2007 WL 2572225 (N.D. Cal. 2007).

Opinion

ORDER

VAUGHN R. WALKER, Chief Judge.

This is a trade secret misappropriation dispute between plaintiff UniRAM Technology, Inc (“UniRAM”) and defendants Taiwan Semiconductor Manufacturing Company LTD and TSMC North America (collectively “TSMC”). In its original complaint, UniRAM also sued Monolithic Systems Technology, Inc (“MoSys”), but that defendant has since settled. TSMC now seeks summary judgment that (1) Uni-RAM’s claims are barred by the statute of limitations and (2) TSMC did not misappropriate UniRAM’s trade secrets. For the reasons that follow, TSMC’s motion is GRANTED in part and DENIED in part.

I

The trade secrets at issue concern a new method of manufacturing dynamic random access memory (“DRAM”) invented by Dr. Jeng-Jye Shau. DRAM is a type of memory that stores data within a circuit. The DRAM memory cells must be embedded into the chip during the manufacturing process. One method of doing this is the EmbDRAM process, while another method is called a logic process. Shau claims that embedding the DRAM by using the logic process was one of his ideas. In 1996, Shau approached TSMC, a foundry of computer chips and circuits, to manufacture his new circuits. Shau decl. at ¶ 5. As part of the process, Shau discussed the invention with TSMC and disclosed “tape outs” of his invention, which included different “features” for manufacturing his device. Id. at ¶¶ 11, 17. Among these features are circuit architecture characteristics such as “EDRAM macro,” “small block,” “hidden refresh,” “SRAM interface,” “planar capacitors” and “standard logic” to name a few. Doc. # 375 at 8 (chart). UniRAM contends its DRAM trade secrets consist of particular combinations of these features. UniRAM asserts that Shau disclosed to TSMC a total of twelve DRAM trade secrets and that TSMC transferred these secrets to MoSys and to Matsushita, which then began to produce similar products.

TSMC attacks the merits of the misappropriation claim. TSMC disputes that it ever acquired knowledge of UniRAM’s trade secrets, asserting that the information in the tapeouts was insufficient as a matter of law to constitute disclosure of trade secrets. Id. at 4. TSMC contends the tapeouts presented only hundreds of thousands of possible combinations of features, and TSMC could not have known the specific combinations which UniRAM claims are secret. Id. at 6. TSMC then argues that it never communicated any alleged secrets to MoSys or Matsushita and accordingly did not misappropriate trade secrets as a matter of law. Id. at 10. TSMC further contends that a number of allegedly infringing products do not use one of the trade secret elements at issue. Id. at 11. Lastly, TSMC claims that Uni-RAM knew or should have known of any alleged misappropriation prior to a time within the statute of limitations period. The court addresses these contentions in turn.

II

In reviewing a summary judgment motion, the court must determine whether genuine issues of material fact exist, resolving any doubt in favor of the nonmov *941 ing party. “[SJummary judgment will not lie if the dispute about a material fact is ‘genuine,’ that is, if the evidence is such that a reasonable jury could return a verdict for the nonmoving party.” Anderson v. Liberty Lobby, 477 U.S. 242, 248, 106 S.Ct. 2505, 91 L.Ed.2d 202 (1986). “Only disputes over facts that might affect the outcome of the suit under the governing law will properly preclude the entry of summary judgment.” Id. The burden of establishing the absence of a genuine issue of material fact lies with the moving party. Celotex Corp. v. Catrett, 477 U.S. 317, 322-23, 106 S.Ct. 2548, 91 L.Ed.2d 265 (1986). Summary judgment is granted only if the moving party is entitled to judgment as a matter of law. FRCP 56(c).

The nonmoving party may not simply rely on the pleadings, however, but must produce significant probative evidence, by affidavit or as otherwise provided in FRCP 56, supporting the claim that a genuine issue of material fact exists. TW Elec. Serv. v. Pacific Elec. Contractors Ass’n, 809 F.2d 626, 630 (9th Cir.1987). Conclusory, speculative testimony in affidavits and moving papers is insufficient to raise genuine issues of fact and defeat summary judgment. Thornhill Publishing Co., Inc. v. GTE Corp., 594 F.2d 730, 738 (9th Cir.1979). The evidence presented by the nonmoving party “is to be believed, and all justifiable inferences are to be drawn in his favor.” Anderson, 477 U.S. at 255, 106 S.Ct. 2505. “[T]he judge’s function is not himself to weigh the evidence and determine the truth of the matter but to determine whether there is a genuine issue for trial.” Id. at 249, 106 S.Ct. 2505.

Ill

A

California trade secret law governs UniRAM’s misappropriation claim. See Doc. # 375 at 4. Under the California statute, trade secret misappropriation is defined, in part, as:

(2) Disclosure or use of a trade secret of another without express or implied consent by a person who:
(B) At the time of disclosure or use, knew or had reason to know that his or her knowledge of the trade secret was:
(ii) Acquired under circumstances giving rise to a duty to maintain its secrecy or limit its use; or
(iii) Derived from or through a person who owed a duty to the person seeking relief to maintain its secrecy or limit its use; * * *.

Cal. Civ. Code § 3426.1(b). UniRAM claims its trade secrets consisted of particular combinations of features and that Uni-RAM communicated these secrets to TSMC through tape outs Shau shared with TSMC who then disclosed these secrets to MoSys. TSMC denies that the secrets were ever communicated to TSMC and that the court can make this determination as a matter of law.

TSMC primarily argues that UniRAM’s disclosures to TSMC consist of tape outs which merely list dozens of different possible circuit “features” and do not specify the unique combinations of features that make up the trade secrets at issue. According to TSMC, summary judgment is appropriate because “not a single document UniRAM relies on to support disclosure of its alleged trade secrets recites all of the features for a given combination secret.” Doc. # 375 at 7. Moreover, according to TSMC, none of Shau’s oral disclosures to TSMC ever identified specific secret combinations. Id. at 9.

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Bluebook (online)
617 F. Supp. 2d 938, 2007 U.S. Dist. LEXIS 67863, 2007 WL 2572225, Counsel Stack Legal Research, https://law.counselstack.com/opinion/uniram-technology-inc-v-taiwan-semiconductor-manufacturing-co-cand-2007.