2 Companies Settle Business Contract Dispute In California
On behalf of The Law Office of Lynnette Ariathurai, A Professional Corporation posted in Contract Disputes on Tuesday, September 24, 2013.
Many times a business will have their employees sign a contract to keep company trade secrets confidential as well as other information they obtain while working for the company. This allows the company to bring a lawsuit against the employee if he or she does disclose trade secrets to a competitor. Most of the time this will apply even after the employee has stopped working for the company. This may have been what recently happened in a business contract dispute in California.
The case in California state court was filed by GigOptix against the defendant company Optomai, Inc., which is a MACOM subsidiary. The complaint also named three former GigOptix employees as defendants. The three former employees founded Optomai and is being accused by their former employer of misappropriating trade secrets as well as breach of contract.
Another court case had been filed against GigOptix by MACOM in federal court. This lawsuit accuses GigOptix of patent infringement. However, instead of going through a potentially long and contentious litigation process, the parties have decided to settle their legal disputes outside of court. MACOM will make a lump sum payment of $7.25 million to GigOptix in accordance with their settlement agreement.
This case in California is just one example of how alternative dispute resolution can be utilized in order to spare all parties of a business contract dispute from legal and court fees associated with a drawn out litigation battle. However, it is still important for a company involved in a legal dispute to have a firm grasp on relevant laws. This will ensure the company understands how much legal leverage it has while negotiating a settlement agreement.
Source: semiconductor-today.com, MACOM and GigOptix announce final settlement of all pending lawsuits between them, No author, Sept. 19, 2013