AMD Accuses Former Employees of Stealing Documents, Smuggling IP to NVIDIA

From DailyTech: Advanced Micro Devices, Inc. (AMD), one of the world's two largest PC graphics card manufacturers has filed an eye-catching lawsuit in U.S. District Court for the District of Massachusetts which implicates four of its former employees and its chief rival NVIDIA Corp. (NVDA) in a stunning theft of intellectual property.

Attorneys for AMD write, "This is an extraordinary case of trade secret transfer/misappropriation and strategic employee solicitation."

AMD says former executive Robert Feldstein, who left AMD to join NVIDIA in July 2012, masterminded the scheme by illegally taking with him a number of AMD files and electronic documents. The filing claims that Mr. Feldstein was then assisted by three other employees -- Manoo Desai, Nicolas Kociuk, and Richard Hagen -- who also jumped shipped to NVIDIA last summer.

Mr. Feldstein had been a key figure at AMD, negotiating for the company's game console business unit. Thanks to his work AMD achieved hegemony in the gaming console market with contracts from Microsoft Corp. (MSFT) for the Xbox, from Sony Corp. (TYO:6758) for the PlayStation, and from Nintendo Comp., Ltd.'s (TYO:7974) for the Wii U.

In total, AMD claims that over 100,000 of its documents were stolen and transfered to electronic storage devices (e.g. external hard drives or USB sticks).

The filing states that forensic analysis of the defendants' computers revealed, "Desai and Kociuk conspired with each other to misappropriate AMD's confidential, proprietary, and/or trade secret information; and/or to intentionally access AMD's protected computers, without authorization and/or in a way that exceeded their authorized access."

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