Out-Law / Your Daily Need-To-Know

Avant! Corporation and eight of its current and former employees, officers and directors are facing a rare criminal trial in a Californian court on charges of conspiracy to commit trade secret theft, actual trade secret theft, receiving stolen property and securities fraud.

Avant! is a major developer of software for chip designers, with 65 offices in 18 countries. The criminal case against it began four years ago and jury selection finally began on Monday. The case alleges that the company and certain employees stole several hundred lines of source code from rival software developer Cadence Design Systems and illegally used it in its products, acts that allegedly made $200 million for Avant!

On conviction, each defendant could face up to 11 years imprisonment and fines of $27 million. While civil lawsuits for trade secret theft are not uncommon (Cadence is separately suing Avant! over the same issues), criminal proceedings are very rare.

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