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hackingbear shares a report from Bloomberg: Top U.S. chip-equipment supplier Applied Materials was sued by a rival in China over alleged trade secret theft, a further escalation in the technology war between the world's two largest economies. Beijing E-Town Semiconductor Technology Co. filed a lawsuit with the Beijing Intellectual Property Court against Applied Materials, according to a company statement (PDF) to the Shanghai Stock Exchange. The Chinese chip-gear maker alleged that the Santa Clara, California-based company illegally obtained, used and revealed its core technologies related to the application of plasma source in treating the surface of wafers, the statement said. The court has filed the case but has not begun a trial, E-Town added. Applied Materials earlier hired two employees from E-Town's fully owned US subsidiary, Mattson, and they were privy to the Beijing company's proprietary plasma technologies, the filing said. Applied Materials filed a patent application crediting the duo as inventors with the National Intellectual Property Administration in China after the two joined the Santa Clara company, the Beijing firm said, alleging that the content revealed trade secrets co-owned by E-Town and Mattson. "The patent application violated the rules of China's Anti-Unfair Competition Law, and it infringes on trade secrets, and has caused significant damage to the plaintiff's intellectual property and economic interests,â E-Town said in the filing, adding that Applied Materials is also suspected of marketing and selling the technologies involved in the case to Chinese customers. E-Town is asking the court to demand that Applied Materials stop using its trade secrets and destroy related materials. It's also seeking about 100 million yuan ($13.9 million) in recompense for damage.

Read more of this story at Slashdot.

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