Insights
Firm News

Farella Client CNEX Labs Prevails In High-Stakes Trade Secrets Trial Against Huawei

June 26, 2019 Announcement

SAN FRANCISCO, June 26, 2019: Following a three-week trial, a Texas federal jury ruled in favor of Farella Braun + Martel client CNEX Labs, Inc., clearing CNEX of all allegations of trade secret misappropriation, breach of contract, CFAA, and RICO claims made by Chinese smartphone maker behemoth Huawei Technologies. Instead, the jury found in favor of CNEX on its counterclaims for trade secret misappropriation, claims which CNEX uncovered during the discovery phase of the case.

A startup based in San Jose, California, CNEX develops transformative architecture for solid state drive (SSD) controllers. In the lawsuit, Huawei sought at least $85.7 million in damages and rights to CNEX’s memory-control technology, including much of its patent portfolio.

“The jury saw through Huawei’s attempts to use the court system to bully CNEX,” said Farella Partner Jeff Fisher. “It has been an honor to represent the innovative team at CNEX in its fight against Huawei’s baseless claims of trade secret misappropriation. We are thrilled we were able to demonstrate that Huawei was the real thief here.”

The eight-member jury deliberated for less than a day in rejecting all of Huawei’s claims against CNEX.

Farella Partner Eugene Mar added, “We are proud to have defended an innovative startup in CNEX Labs in this bet-the-company case and are deeply appreciative that the jury has put a stop to Huawei’s attempts to bully and intimidate CNEX into turning over its patent portfolio.”

“The company is profoundly grateful to the exceptional team of trial lawyers at Farella Braun + Martel for their dedication to the case and in defending CNEX’s right to innovate,” said Matthew Gloss, CNEX’s general counsel.

In addition to Fisher and Mar, the trial team included Farella’s Daniel Callaway, Stephanie Skaff, Jeffrey Lau, and Nadia Arid, and Deron Dacus of the Dacus Law Firm, and Bryan Kohm and Shannon Turner of Fenwick & West.

CNEX press release

The case is Huawei Technologies Co. Ltd. v. CNEX Labs, Inc. et al., 4:17-cv-00893, U.S. District Court, E.D. Texas.

Farella Braun + Martel is a leading Northern California law firm representing corporate and private clients in sophisticated business transactions and complex commercial, civil and criminal litigation. Clients seek our imaginative legal solutions and the dynamism and intellectual creativity of our lawyers. We are headquartered in San Francisco and maintain offices in the Napa Valley that are focused on the wine industry.

Contact:
Cheryl Loof
(415) 954-4433 / [email protected]

Firm Highlights

Publication

Tips For Banks As USAA Check Deposit Patent Dispute Grows

In January 2020, we wrote a  Law360 guest article  that highlighted some of the risks that followed Wells Fargo Bank NA's strategy in its patent dispute with the United Services Automobile Association over remote deposit check imaging technology. Nearly...

Read More
Publication

IP Law up for Best Supporting Role in the COVID-19 Relief Spending Bill and Other New Legislation

The new, more than 5,000-page spending bill (formally known as The Consolidated Appropriations Act), which includes the latest COVID-19 relief, had a few surprises under its cover. Two of those surprises focus directly on...

Read More
Publication

Electric Fence: Protecting Proprietary Rights in Collected Energy Data

Like companies in other industries, a growing number of modern energy-related companies are focusing their efforts on data collection and analysis. For example, Enphase – an energy technology company – regularly tracks data about how...

Read More
News

Google Wins Unanimous Verdict in Patent Case in Western District of Texas

Farella Braun + Martel client Google LLC won a complete defense verdict from a Texas federal jury in the Western District of Texas on October 6. At issue were allegations that Google's Nest Hub...

Read More
Publication

No Quarter: What Claims Doesn’t Section 230 of the Communications Decency Act Protect Platform Companies Against?

Depending on what you read or who you talk to, Section 230 of the Communications Decency Act (47 U.S.C. § 230) (CDA) is either a tool of censorship, a shield of Big Tech that...

Read More
Publication

Data Center Business Deals Gone Bad, and the Risks of the “Known in the Industry” Defense

Exploring business partnerships often involves or even requires sharing highly confidential trade secret information. The data center industry is no exception, and its participants have in recent years faced litigation focused around the intellectual...

Read More
Publication

SCOTUS Copyright Fair Use Decision: Google vs. Oracle Recap and Takeaways

Eugene Mar and Erik Olson discuss "SCOTUS Copyright Fair Use Decision: Google vs. Oracle Recap and Takeaways." After more than a decade of litigation that included multiple trials and appeals, the Supreme Court of...

Read More
News

51 Farella Lawyers Listed in The Best Lawyers in America© 2022 and Best Lawyers: Ones to Watch

Forty-six Farella Braun + Martel lawyers were selected by their peers for inclusion in the 2022 edition of The Best Lawyers in America © .  Five Farella lawyers were named to Best Lawyers: Ones to...

Read More
News

Four Farella Intellectual Property Partners Named 2021 IP Stars; Firm Recommended for Patent Litigation

Farella Braun + Martel’s James L. Day , Jeffrey M. Fisher , Eugene Mar , and Stephanie P. Skaff  have been named IP Stars by Managing Intellectual Property in its 2021 guide to the...

Read More
News

Jeff Fisher Named Among Top Trade Secrets Lawyers in California by the Daily Journal

Farella Braun + Martel is proud to announce that Jeffrey M. Fisher was named among 2021’s “Top Trade Secrets Lawyers” in California by the Daily Journal . Jeff is an accomplished trial lawyer with...

Read More