Nassda clarifies federal and state litigation

Nassda Corporation has commented on recent rulings and opinions in its litigation with Synopsys.

Nassda Corporation has commented on recent rulings and opinions in its litigation with Synopsys.

During the last several weeks, the courts issued orders in the cases in California federal and state courts.

In the federal action, the US Patent Office recently determined that prior art relating to one of Synopsys' products, which was not previously disclosed to or considered by the Patent Office, created a "substantial" question as to whether the patent which Synopsys is asserting against Nassda (US Patent 5,878,053) is valid.

Based on this determination, the Patent Office has decided to "re-examine" the patent.

Because the Patent Office could narrow, invalidate or otherwise change Synopsys' patent claims during the re-examination process, the Federal Court recently issued an order staying Synopsys' patent infringement action against Nassda in its entirety until the re-examination process has been completed.

With respect to the California state court action, the discovery referee recently issued orders, some of which were in favour of Nassda, some of which were not.

Nassda disagrees with certain of the discovery referee's rulings.

These rulings created "rebuttable presumptions" in favor of Synopsys on certain evidentiary issues to sanction Nassda for erasure of certain computer files requested in discovery by Synopsys.

These rulings mean that Nassda must prove at trial that it did not take or use Synopsys' source code or other confidential information, rather than the usual requirement for Synopsys to provide such proof.

However, none of these rulings resolves any of the claims made by Synopsys in the case and the trial judge or jury can reach their own conclusions based on the evidence presented at trial.

Nassda will present evidence at trial and show that it did not take or use Synopsys' trade secrets.

Synopsys' attorneys have had access to Nassda's proprietary source code to HSIM for over a year, including documentation detailing the creation of Nassda's HSIM product, and have not identified to Nassda or the court any specific evidence showing that anyone at Nassda used Synopsys source code.

"Contrary to recent reports in the press, no Synopsys source code has been found on any Nassda computer", said An-Chang Deng, President.

"No Synopsys source code has been located within Nassda or in its products because Nassda and its founders did not take or use it.

Nassda intends to vigorously defend itself and believes that the evidence at trial will show that Synopsys' claims against it lack any merit".

"Nassda is a technology leader, not a follower", said Sang Wang, CEO.

"Nassda's technologies are truly innovative and not based on any competitor's proprietary technology.

This is demonstrably true based upon any fair comparison of Nassda's products against its competition.

The industry continues to adopt Nassda's new-generation capabilities as its nanometer solutions because Nassda's technology is truly innovative, not derivative.

Synopsys' decision to use litigation and marketing tactics instead of innovations to compete will ultimately disappoint its users".

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