Avanti Corporation
Encyclopedia
Avanti Corporation was an electronic design automation
company, purchased by Synopsys
in 2002. (See wikt:avanti for the meaning of the word.)
, of which BusinessWeek
said "The Avant! case is probably the most dramatic tale of white-collar crime
in the history of Silicon Valley
." In this case, Cadence and the district attorney claimed that Avanti was founded on stolen Cadence code, and Avanti denied it.
The case started when a Cadence engineer noticed that the Avanti code exactly reproduced a particular bug that Cadence code exhibited earlier. After finding more similarities, Cadence called the district attorney
, Julius Finkelstein. Finkelstein, who was a computer science major and interested in white collar crime, got a warrant
. A search revealed considerable Cadence code on Avanti computers and those of consultants it had hired.
The ensuing legal battle lasted for more than six years. Cadence would get an injunction
against a particular Avanti product, and Avanti would promptly replace it with one with a new name. Cadence would claim this new product was still tainted, and the battle continued.
However, this was also a criminal case as well as a civil case, and eventually it came to trial. At this point the Avanti executives (Gerald Hsu and six others) pled no contest
to charges of trade secret theft
, conspiracy to commit trade secret theft, receiving stolen property, and securities fraud
. Avanti and the executives paid at this point about $195 million in restitution to Cadence with an additional $40+ million in fines personally to the State. Of the six defendants,
This cleared the way for the civil suit to proceed. During this litigation, Avanti was bought by Synopsys, which paid Cadence about $265 million dollars more to end all litigation. Soon after the settlement, in Cadence Design Systems, Inc. v. Avant! Corp., 29 Cal. 4th 215, 57 P.3d 647, 127 Cal. Rptr. 2d 169 (2002), the California Supreme Court upheld the lower court's earlier decision.
Synopsys then paid an additional $26.1 million to Silvaco
to settle two of three Silvaco's suits against Meta Software, earlier purchased by Avanti, and its president. The lawsuits were filed in 1995 and inherited by Avanti.
Electronic design automation
Electronic design automation is a category of software tools for designing electronic systems such as printed circuit boards and integrated circuits...
company, purchased by Synopsys
Synopsys
Synopsys, Inc. is one of the largest companies in the Electronic Design Automation industry. Synopsys' first and best-known product is Design Compiler, a logic-synthesis tool. Synopsys offers a wide range of other products used in the design of an application-specific integrated circuit...
in 2002. (See wikt:avanti for the meaning of the word.)
Legal issues
Avanti was a defendant in a long running legal battle with Cadence Design SystemsCadence Design Systems
Cadence Design Systems, Inc is an electronic design automation software and engineering services company, founded in 1988 by the merger of SDA Systems and ECAD, Inc...
, of which BusinessWeek
BusinessWeek
Bloomberg Businessweek, commonly and formerly known as BusinessWeek, is a weekly business magazine published by Bloomberg L.P. It is currently headquartered in New York City.- History :...
said "The Avant! case is probably the most dramatic tale of white-collar crime
White-collar crime
Within the field of criminology, white-collar crime has been defined by Edwin Sutherland as "a crime committed by a person of respectability and high social status in the course of his occupation" . Sutherland was a proponent of Symbolic Interactionism, and believed that criminal behavior was...
in the history of Silicon Valley
Silicon Valley
Silicon Valley is a term which refers to the southern part of the San Francisco Bay Area in Northern California in the United States. The region is home to many of the world's largest technology corporations...
." In this case, Cadence and the district attorney claimed that Avanti was founded on stolen Cadence code, and Avanti denied it.
The case started when a Cadence engineer noticed that the Avanti code exactly reproduced a particular bug that Cadence code exhibited earlier. After finding more similarities, Cadence called the district attorney
District attorney
In many jurisdictions in the United States, a District Attorney is an elected or appointed government official who represents the government in the prosecution of criminal offenses. The district attorney is the highest officeholder in the jurisdiction's legal department and supervises a staff of...
, Julius Finkelstein. Finkelstein, who was a computer science major and interested in white collar crime, got a warrant
Warrant (law)
Most often, the term warrant refers to a specific type of authorization; a writ issued by a competent officer, usually a judge or magistrate, which permits an otherwise illegal act that would violate individual rights and affords the person executing the writ protection from damages if the act is...
. A search revealed considerable Cadence code on Avanti computers and those of consultants it had hired.
The ensuing legal battle lasted for more than six years. Cadence would get an injunction
Injunction
An injunction is an equitable remedy in the form of a court order that requires a party to do or refrain from doing certain acts. A party that fails to comply with an injunction faces criminal or civil penalties and may have to pay damages or accept sanctions...
against a particular Avanti product, and Avanti would promptly replace it with one with a new name. Cadence would claim this new product was still tainted, and the battle continued.
However, this was also a criminal case as well as a civil case, and eventually it came to trial. At this point the Avanti executives (Gerald Hsu and six others) pled no contest
Nolo contendere
is a legal term that comes from the Latin for "I do not wish to contend." It is also referred to as a plea of no contest.In criminal trials, and in some common law jurisdictions, it is a plea where the defendant neither admits nor disputes a charge, serving as an alternative to a pleading of...
to charges of trade secret theft
Industrial espionage
Industrial espionage, economic espionage or corporate espionage is a form of espionage conducted for commercial purposes instead of purely national security purposes...
, conspiracy to commit trade secret theft, receiving stolen property, and securities fraud
Securities fraud
Securities fraud, also known as stock fraud and investment fraud, is a practice that induces investors to make purchase or sale decisions on the basis of false information, frequently resulting in losses, in violation of the securities laws....
. Avanti and the executives paid at this point about $195 million in restitution to Cadence with an additional $40+ million in fines personally to the State. Of the six defendants,
- One was completely exonerated with no criminal recordCriminal recordA criminal record is a record of a person's criminal history, generally used by potential employers, lenders etc. to assess his or her trustworthiness. The information included in a criminal record varies between countries and even between jurisdictions within a country...
. - One served a three month probation, with a misdemeanorMisdemeanorA misdemeanor is a "lesser" criminal act in many common law legal systems. Misdemeanors are generally punished much less severely than felonies, but theoretically more so than administrative infractions and regulatory offences...
record. - Three served some time in a minimal security facility, working half the time outside, and receiving a criminal record.
- One served time in San Quentin, then transferred to a minimal security facility, with a criminal record.
This cleared the way for the civil suit to proceed. During this litigation, Avanti was bought by Synopsys, which paid Cadence about $265 million dollars more to end all litigation. Soon after the settlement, in Cadence Design Systems, Inc. v. Avant! Corp., 29 Cal. 4th 215, 57 P.3d 647, 127 Cal. Rptr. 2d 169 (2002), the California Supreme Court upheld the lower court's earlier decision.
Synopsys then paid an additional $26.1 million to Silvaco
Silvaco
Silvaco, inc. is a privately owned provider of electronic design automation software and TCAD process and device simulation software. Silvaco was founded in 1984 by Dr. Ivan Pesic...
to settle two of three Silvaco's suits against Meta Software, earlier purchased by Avanti, and its president. The lawsuits were filed in 1995 and inherited by Avanti.