Applied Materials Employment Contract Invalid: Court

Law360, New York (May 29, 2009, 12:00 AM EDT) -- A federal judge has ruled that the employment agreements at the center of a trade secrets dispute between semiconductor rivals Applied Materials Inc. and Advanced Micro-Fabrication Equipment Inc. are invalid and constitute unfair competition under California law.

Judge James Ware of the U.S. District Court for the Northern District of California granted summary judgment to AMEC after concluding that a provision in Applied's employment agreements related to the assignment of intellectual property was unnecessarily broad.

San Jose, Calf.-based Applied sued AMEC in October 2007 after several...
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