US Court Denies Injunction Sought by Verigy

Court Watch Posted on

Chip testing equipment maker Verigy Ltd. said Wednesday that a U.S. district court has granted a preliminary injunction preventing Silicon Test Systems Inc. from selling its integrated circuit product for the next five months.

The U.S. District Court for the Northern California District of California, San Jose Division, issued its ruling on Friday. The preliminary injunction prevents the defendants from selling, licensing, distributing, transferring or marketing Flash Enhancer and any product based on Flash Enhancer.

According to Verigy, the court found that Flash Enhancer "is substantially based upon Verigy's trade secrets."

Verigy said defendant Romi Mayder was employed by the company until September 2006 and began developing an integrated circuit product for a new business venture while still employed by Verigy. Mayder's brother, Wesley Mayder, is also named as a defendant.

In a phone interview, Romi Mayder noted that the judge denied the absolute injunction that Verigy sought. Mayder said the information used to develop his product was publicly available and that his use of it amounted to a "five-month head start."

Verigy sued the defendants in August 2007 for breach of contract, trade secret misappropriation, statutory and common law unfair competition and other charges.

The court issued a temporary restraining order against the defendants on Aug. 24, which was still in effect when the preliminary injunction was issued.

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