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Chip Maker Gets $35 Million Judgment

Neoflexycurrent writes "The Ninth Circuit Court of Appeals has affirmed a $35 million judgment against Clear Logic for violation of the Semiconductor Chip Protection Act of 1984. The court concluded that the jury properly rejected Clear Logic's argument that it had legitimately reverse engineered Plaintiff Altera Corporation's mask work design to create cheaper application-specific integrated circuits."

16 of 88 comments (clear)

  1. in (somewhat) plainer english by seanadams.com · · Score: 5, Informative

    Altera makes chips that can be programmed to do different things (FPGAs).

    Clear Logic made "application specific integrated circuits" - ie they only do one specific thing that the customer needs, but are cheaper than programmable chips if you buy enough.

    The issue here is that Clear Logic's mechanism for receiving the design from the customer and making it into a chip is to use the programming data (bitstream) for an Altera chip. Then the data is used together with an image (mask) copied from an Altera chip to create the ASIC.

    The ruling is that Clear Logic's use of the mask in building the ASIC is not legitimate reverse engineering, but illegal re-use of Altera's IP.

    FYI: Clear Logic seems to have been dead since 2003.

    editorial: only $35M?

  2. Non-Protectible by Krast0r · · Score: 4, Insightful

    "The trial court's instructions initially defined "legitimate reverse engineering" to allow copying and analyzing only "non-protectible concepts or techniques" embodied in a mask work." It would seem that nothing these days is "non-protectible" if RIAA, MPPA or SCO have anything to say about it.

    --
    Matthew Grint Midnight Artists
  3. Article text - +5 Informative (and question) by scovetta · · Score: 4, Informative

    Ninth Circuit affirms $35 million judgment against semiconductor manufacturer

    Case is rare appellate decision under Semiconductor Chip Protection Act of 1984

    Altera Corporation filed suit in the U.S. District Court for the Northern District of California against Clear Logic, Inc., a competitor in the semiconductor industry. Altera alleged that Clear Logic had violated the Semiconductor Chip Protection Act of 1984, 17 U.S.C. 901 et seq. ("SCPA"), by using the bitstream generated when programming Altera programmable logic devices to create application-specific integrated circuits. A jury found in favor of Altera, and awarded more than $30 million in damages, plus an additional $5 million in interest and costs.

    Clear Logic appealed to the Ninth Circuit, arguing that the trial court improperly instructed the jury regarding the affirmative defense of legitimate reverse engineering, which is provided for under the SCPA. The court affirmed, however, holding that certain misstatements of the law in the jury instructions were harmless error.

    The trial court's instructions initially defined "legitimate reverse engineering" to allow copying and analyzing only "non-protectible concepts or techniques" embodied in a mask work. This was an incorrect statement of the law, but the court concluded that further instructions adequately provided correction. The later instructions explained that "it is permissible [under the SCPA] to reproduce 'a registered mask work' as a step in the process of creating an original chip, so long as the purpose of reproducing the chip is appropriate."

    Accordingly, the court held that the jury was able to properly conclude that the Clear Logic mask works incorporated into the application-specific integrated circuits were not original, but were copies prohibited under the SCPA.

    ---
    And my question is: What the hell is a "mask"? Can someone please post the Wikipedia entry that will explain all the background information I need to know on the subject? It looks to me like a run of the mill, "he copied me" case. Why is this news?

    --
    Wer mit Ungeheuern kämpft, mag zusehn, dass er nicht dabei zum Ungeheuer wird. --Nietzsche
  4. 'Mask' in this context by Colonel+Panic · · Score: 4, Informative

    The 'mask' in this context can be thought of as a set of transparancies with lines on them that define wires on the chip. Chips are made with a photo-lithography process where light is shined onto silicon through a mask. The lines on the mask block the light from hitting the silicon and depending on the process the areas which are exposed on the silicon will be etched away by acids/solvents. Multiple masks are used to create different features/layers on the silicon. some create wires, others create transistors.

    1. Re:'Mask' in this context by slavemowgli · · Score: 4, Informative

      JFYI, here's the relevant Wikipedia article, too: Photomask.

      --
      quidquid latine dictum sit altum videtur.
  5. Re:And we care because? by Mr.+Underbridge · · Score: 5, Funny
    Gee, news involving chip manufacturers and the processes used to make chips from designs USED to be news that mattered to real nerds. Perhaps there are none left here?

    Maybe you'd like another article about global warming or the Iraq war?

  6. rejection of clear logic by d1v1d3byz3r0 · · Score: 5, Funny

    does anyone else find the phrase "the jury properly rejected Clear Logic's argument" to be ironic?

  7. A question: by Ungrounded+Lightning · · Score: 4, Interesting

    Did Clear Logic:
      1) just reverse engineer the masks of the FPGA to figure out how to decode the programming stream and automatically make an ASIC with the same functionality, or
      2) actually clone significant sections of one or more of the FPGA masks themselves into the mask geometry generation step for the automatic ASIC design process, so that the geometry of the FPGA mask is reproduced (perhaps with edits, such as jumpers where programmable transistors would be) in the masks for the ASIC?

    If 1), IMHO they were blameless. If 2), IMHO the jury called it correctly.

    --
    Bantam Dominique roosters crow a four-note song. Once you've heard it as "Happy BIRTHday" you can't NOT hear it that way
  8. Imagine being on the Jury by Se7enLC · · Score: 4, Insightful

    Imagine being on the jury for this case.

    From the article:

    Clear Logic appealed to the Ninth Circuit, arguing that the trial court improperly instructed the jury regarding the affirmative defense of legitimate reverse engineering, which is provided for under the SCPA. The court affirmed, however, holding that certain misstatements of the law in the jury instructions were harmless error. The trial court's instructions initially defined "legitimate reverse engineering" to allow copying and analyzing only "non-protectible concepts or techniques" embodied in a mask work. This was an incorrect statement of the law, but the court concluded that further instructions adequately provided correction. The later instructions explained that "it is permissible [under the SCPA] to reproduce 'a registered mask work' as a step in the process of creating an original chip, so long as the purpose of reproducing the chip is appropriate."

    As an electrical engineer, I'm having a hard time fully following all the legalese on this - imagine having to learn what reverse-engineering is, what an FPGA is, and the entire design process while on the jury?

    I bet they just sat back in their little deliberation box:

    I dunno, they look guity to you, Jeb?

    1. Re:Imagine being on the Jury by mark_hill97 · · Score: 4, Insightful

      Indeed that would be hard. In my opinion what they should have done was get electrical engineers from non-competetive firms and had them fufil the duty of the jury. It seems to me this would be a much better interpretation of a jury of your peers.

    2. Re:Imagine being on the Jury by DoctorHibbert · · Score: 4, Insightful

      I've served as an expert witness in a patent case, one company was suing another for a patent violation. The patent was ridiculous, the concepts patented had already been around commerically for over 10 years at the time they filed their patent. Any programmer would have understood the issues once explained. However, the jury is just about high school education levels. Many don't even own a computer. Good luck getting them to understand.

      Indeed, in the end, its not who's right, it's whose most credible to the jury. And usually that's the side that's most likable. The actual facts don't really matter.

      --
      Arbitrary sig
  9. The only post worse than one from a Karma whore by Golias · · Score: 5, Insightful

    The only post worse than one from a Karma whore is one that calls for somebody to be modded down because you don't like their politics.

    Maybe the guy really is a myopic jackass for getting his panties in a twist over a very obscure and complex ruling from a court he doesn't like... maybe not. I dunno. Reverse engineering laws are complex, and I admit that, not being an IP lawyer, I barely grasp them.

    How about arguing against his point rather than making a personal attack and calling for him to be silenced (by begging mods to crank his post down to -1 where almost nobody will see it)?

    Why do you hate Free Speech?

    Seriously. Why? There's no room for debate on the point that you do, as you are trying to censor rather than debate, so the only question is, why do you hate Free Speech?

    --

    Information wants to be anthropomorphized.

    1. Re:The only post worse than one from a Karma whore by Golias · · Score: 4, Insightful

      i dont think the OP or the AC that responded are really contributing anything to the discussion.

      The OP points out that the particular court which ruled on this case is requently overturned. If nothing else, he called attention to the fact that the 9th Circuit is perceived by some as somewhat controversial. If we are going to discuss their ruling, that might be worth talking about.

      since you dont want anyone censored, do you read /. at -1? if not, why?

      The purpose of moderation is two-fold: The first (and more important) purpose is to elevate the visibility of noteworthy comments. Some people like to read at a high threshold to save time. They will only see posts which were seen by at least a few people as particularily worthy of consideration.

      The other is allow people to filter out crapflooders, goatse.cx trolls, and other folks who are not really posting to express an idea or participate in a conversation, but simply ruin the experience of reading the forum for everybody else. The moderation guidelines take great pains to urge people to use negative moderation points extremely sparingly.

      Modding down somebody simply because you disagree with them, don't like them, or consider their views "dangerous" is not what moderation is supposed to be for. Some people choose to do exactly that with their mod points, but that's a shame.

      The way to counter bad ideas is to confront them with good ones, not shout them down.

      Yeah, yeah... insert oblig. "you must be new here" joke.

      --

      Information wants to be anthropomorphized.

  10. Ok, ok, so. . . by EraserMouseMan · · Score: 5, Funny

    Q: Where do you go to sue somebody for violating a semiconductor law?

    A: A Circuit Court!!!

    Bad, Bad!!!

  11. Re:Altera Mask Set by interiot · · Score: 4, Informative
    Circuit masks are very specifically called out as a special case in copyright law.

    It seems like the distinction is similar to music recordings. That copying the majority of an audio recording, with a few tweaks of your own, is considered infringement. While the "underlying ideas" are not necessarily protected, eg. so you could play the exact same notes with very similar timings again on your own instrument, and that would not be considered to be a copyright violation. (eg. they could have reverse engineered the logic of the circuit and re-generated their own, different, layout)

  12. Re:A question: Did Clear Logic use Altera Masks ? by dougxray · · Score: 5, Informative

    NO !!!!
    I worked for Clear Logic from its begining to its end (we ran out of money paying lawyers). We never used any Altera masks ever. We spent a significant amount of time reverse engineering the masks so we would be legal. I believe the judge never understood this.