Chip design software provider Cadence Design Systems has settled
an eight-year legal battle over allegations that a rival, Avant
Corporation, stole source code from the chip design software
company and used it to develop rival products. Cadence will be paid
the sum of £265 million and the companies will enter into
reciprocal licences for the disputed software.
Cadence sued Avant after a 1994 criminal investigation into Avant employees concerning the alleged source code theft. In 2001, a deal was struck with prosecutors which resulted in jail terms for some former Avant employees in addition to fines. However, in its civil suit, Cadence originally sought damages of $1 billion.
Avant was acquired by Synopsis, another chip design software company, in June. The settlement will be paid out of insurance taken out at the time of the acquisition.
