GloFo sues IBM over IP transfers

GloFo says  that it collaborated with IBM on process development in Albany for many years and acquired the exclusive right to that technology in 2015 when IBM paid GloFo $1.5 billion to take over the ownership of IBM’s fabs.

IBM has been working with both Rapidus and Intel on developing new processes.

“IBM is unjustly receiving potentially hundreds of millions of dollars in licensing income and other benefits,” says GloFo. 

GloFo is asking for compensatory and punitive damages and court orders to stop IBM using the trade secrets and recruiting IBM engineers.

IBM responds:  “GlobalFoundries filed this meritless lawsuit after a court rejected the company’s attempt to dismiss IBM’s legitimate fraud and breach of contract claims.”

In 2021 GloFo asked for a court ruling that it had not broken the terms of the deal with IBM which transferred the fabs. IBM says GloFo broke the terms of the deal and owes it $2.5 billion. That case has not yet been decided.

IBM’s IP licensing arm has brought in $28 billion since 1996.