IN THE UNITED STATES DISTRICT COURT
FOR THE EASTERN DISTRICT OF VIRGINIA
Alexandria Division
UNITED STATES OF AMERICA,
Plaintiff,
v.
MICROSEMI
CORPORATION,
Defendant.
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No.
l:08cv1311(AJT/JFA)
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ORDER TO PRESERVE AND MAINTAIN ASSETS
1.
Plaintiff United States filed a complaint on December 18, 2008, alleging that
Defendant Microsemi Corporation's ("Microsemi") acquisition of substantially all of the
assets of Semicoa, Inc. ("Semicoa") violated Section 7 of the Clayton Act, 15 U.S.C. §
18, and Section 2 of the Sherman Act, 15 U.S.C. § 2.
2.
Plaintiff seeks preliminary and permanent equitable and other relief to remedy the
alleged harm to competition, including the divestiture of the acquired assets.
3.
Defendant Microsemi has agreed to preserve and maintain the assets it acquired from
Semicoa pending a resolution on the merits of this action.
4.
Microsemi agrees to this Order.
WHEREFORE, for good cause shown, it is hereby ORDERED: For the purposes of this
Order, the following definitions shall apply:
A. "Microsemi" means Defendant
Microsemi Corporation, a Delaware corporation with its headquarters in Irvine, CA, its
successors and assigns, and its subsidiaries, divisions, groups, affiliates, partnerships and joint ventures, and their directors, officers, managers,
agents, and employees.
B. "Semicoa" means Semicoa, Inc., a California corporation with its
headquarters in Costa Mesa, CA, its successors and assigns, and its subsidiaries, divisions, groups,
affiliates, partnerships and joint ventures, and their directors, officers, managers, agents, and
employees.
C. "Semicoa Assets" means all assets acquired by Microsemi from Semicoa on
July 14, 2008, including but not limited to:
- all specifications, manufacturing plans, assembly instructions, standard operating
procedures, and work instructions related to the manufacturing process, including all
right, title and interest in or to all other assets of every kind and nature used or intended to
be used in the operation of Semicoa's business, including, but not limited to, any finished
or unfinished devices, any materials, data or know-how wherever found or of whatever
kind reasonably required to manufacture and sell the goods and services previously
produced by Semicoa as well as all books and records, and all files, documents, papers
and agreements that are material to the continuing operation of Semicoa's business;
- all finished goods, works in progress, piece parts and materials inventory, packaging,
and labels, supplies and other related personal property;
- all equipment, machinery or software used in the development, design, manufacturing
and testing of goods previously manufactured by Semicoa;
- all right, title and interest in, and all information related to, any tooling, molds,
equipment and proprietary specifications Semicoa previously had
with any and all vendors from which Semicoa purchased goods or
services, whether or not there are any "open" purchase orders issued
to such vendors, as well as names and other information concerning
any vendor that provides goods or services that were material to the
operation of Semicoa's business;
- any list of customers to which Semicoa previously sold products or
provided services over the three years prior to July 14, 2008, whether or not
there are any "open" sales orders from such customers;
- all sales, marketing and promotional literature, cost and pricing data,
promotion list, marketing data and other compilations of names and
requirements, customer lists and other sales-related materials;
- all intellectual property ("IP") assets or rights that have been used in the
development, production, servicing, and sale of transistors and diodes,
including but not limited to: all licenses, rights, and sublicenses,
trademarks, trade names, service marks, service names, technical
information, computer software and related documentation, know-how,
trade secrets, approvals, certifications, advertising literature, and all
manuals and technical information provided to the employees, customers,
suppliers, agents, or licensees of Semicoa and used in connection with the
development, design, manufacture, testing, markets, sale or distribution of
transistors or diodes;
- all rights under all contracts, licenses, sublicenses, agreements, leases,
building leases, commitments, purchase orders, bids and offers; and
- all rights acquired pursuant to municipal, state and federal franchises,
permits, licenses, agreements, waivers and authorizations.
It is FURTHER
ORDERED that:
A. Microsemi, and its officers, agents, servants, employees, and attorneys, and
those persons in active concert or participation with Microsemi who receive actual
notice of this Order by personal service or otherwise, are hereby ordered to preserve and maintain the
Semicoa Assets, and are restrained from
- licensing or encumbering any such asset;
- removing, selling, leasing, assigning, transferring, pledging, or otherwise disposing of
any such asset, other than in the ordinary course of business;
- transferring or reassigning to other facilities of Microsemi, or dismissing except for
cause, employees previously employed by Semicoa;
- idling any fabrication, assembly or testing lines (or equipment comprising those lines)
other than in the ordinary course of business;
or causing or assisting others in carrying out any of these prohibited activities.
B. Microsemi, and its officers, agents, servants, employees, and attorneys, and
those persons in active concert or participation with Microsemi who receive actual notice
of this Order by personal service or otherwise, are hereby ordered
- to provide the United States ten (10) days' advance notice of any dismissal of an
employee of the Semicoa Assets;
- to take all commercially reasonable steps necessary to ensure that the Semicoa Assets
are fully maintained in an operable condition and to maintain and adhere to normal repair
and maintenance schedules for the Semicoa Assets; and
- to take all commercially reasonable steps necessary to ensure that the
Semicoa Assets retain all regulatory approvals, including but not limited to
certifications and qualifications granted by the Defense Supply Center
Columbus.
C. Microsemi is hereby ordered to appoint a person or persons to oversee the Semicoa Assets who will be responsible for Microsemi's compliance with this
Order and shall have complete managerial responsibility for such assets.
D. Nothing in this Order shall be deemed a consent by Microsemi to
jurisdiction and venue of this Court for purposes of resolving the complaint or a waiver of
Microsemi's rights to bring any motion to dismiss based on jurisdiction or venue or any motion to
transfer venue.
E. This Order shall not expire until Judgment is entered in this matter and
any appeals are final.
F. This Order is without prejudice to the United States seeking additional
relief at
any time pending a final determination of the merits.
SO ORDERED, this 24th day of December, 2008.
The Clerk is directed to forward copies of this Order to all counsel of record.
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_______________/s/________________
Anthony J. Trenga
United States District Judge
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Alexandria,
Virginia
December 24, 2008
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