TSMC North America v. Semiconductor Manufacturing International Corp.

This appeal challenges the denial of a motion for an antisuit injunction. Appellants TSMC North America, Taiwan Semiconductor Manufacturing Company, Ltd. (TSMC), and Wafertech L.L.C. sought an order prohibiting respondents Semiconductor Manufacturing International Corporation, Semiconductor Manufacturing International (Shanghai) Corporation, and Semiconductor Manufacturing International (Beijing) Corporation (collectively, SMIC) from litigating claims they brought against TSMC in the People’s Republic of China (PRC or China). Relying heavily on considerations of international comity and judicial restraint, the trial court declined to enjoin these foreign proceedings. We affirm the order.

BACKGROUND

In 2003 and 2004, appellants sued SMIC in California’s federal and state courts and before the United States International Trade Commission alleging, among other things, patent infringement and trade secret misappropriation. The parties resolved these actions in 2005 in a comprehensive settlement agreement (Settlement Agreement). The Settlement Agreement included two provisions relevant to our discussion here: (1) an agreement that “the substantive laws of California shall…