The court explained the facts as follows: The defendant, CrestaTech, was founded by Mihai Murgulescu and George Haber in 2005. Its initial products included a receiver for satellite radio and a television platform. CrestaTech entered the television tuner market in September 2011, when it acquired the assets of Xceive Inc., a company developing and selling television tuners. Among the assets that CrestaTech acquired was the XC5000 series of television tuner products–now the accused products in this suit–which Xceive had developed prior to its acquisition in September 2011. Xceive had been selling the XC5000 since at least January 2007.
The plaintiff, Silicon Labs, began in Austin, Texas, in 1996. In the twenty years since, the company has developed and sold a variety of silicon-based TV tuners, with many name-brand TV sets now Xceive representing that it intended to acquire or merge with Xceive. Silicon Labs performed due diligence in evaluating Xceive and the now-accused products. As part of this process, Silicon Labs and its CEO, Tyson Tuttle, executed a Non-Disclosure Agreement and were provided with a set of Xceive confidential and proprietary documents and items. Among those items was an Evaluation Kit for the XC5000, including a number of XC5000 evaluation boards, on which Silicon Labs performed “extensive tests.”