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Thursday's announcements by GlobalFoundries (NASDAQ:GFS) and IBM (NYSE:IBM) revealed that a protracted intellectual property litigation dispute had been settled. A joint statement says that the settlement closes a case GlobalFoundries started in April 2023 and opens the path for possible cooperation in fields of mutual interest.IBM's 2015 sale of its microelectronics company to GlobalFoundries set off a legal tussle. According to the lawsuit, IBM illegally shared intellectual property and trade secrets with Intel (INTC) and the Japanese semiconductor company Rapidus, therefore compromising sensitive data. GlobalFoundries also charged IBM with trying to attract technical personnel from its Albany NanoTech Complex in New York and unfairly benefitting from license payments.
Leaders of both companies expressed hope about upcoming cooperation ventures even if the specifics of the deal are yet unknown. Arvind Krishna, chairman and CEO of IBM, called the fix "a major step forward" and said it lets both businesses concentrate on innovation. Likewise, GlobalFoundries CEO Dr. Thomas Caulfield stated the partnership will "further strengthen the semiconductor industry."
This article first appeared on GuruFocus.