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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (date of earliest event reported): December 7, 1998
AVANT! CORPORATION
(Exact name of registrant as specified in its charter)
Delaware 0-25864 94-3133226
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(State or other jurisdiction (Commission (I.R.S. Employer
of incorporation) File Number) Identification No.)
46871 Bayside Parkway, Fremont, California 94538
(Address of principal executive offices, including zip code)
Registrant's telephone number, including area code: (510) 413-8000
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ITEM 5. OTHER EVENTS
On December 7, 1998, the United States District Court for the Northern
District of California entered an injunction against Avant! Corporation
("Avant!") in the action CADENCE DESIGN SYSTEMS, INC. V. AVANT! CORPORATION,
ET AL., no. 95-20828 RMW. The injunction prohibits Avant! from directly or
indirectly marketing, selling, leasing, licensing, copywriting or
transferring the Aquarius, Aquarius XO, and Aquarius BV products. The
injunction permits Avant! to support until February 5, 1999 customers who are
currently utilizing an Aquarius product. The injunction also prohibits
Avant! from marketing, selling, leasing, licensing, copying or transferring
any translation code for an Aquarius product that infringes any protected
right of Cadence Design Systems, Inc. ("Cadence"). With certain exceptions
related to the pending litigation, beginning February 5, 1999, the injunction
prohibits Avant! from possessing or using any copies of any portion of the
source code or object code for the Aquarius products to the extent that such
portion is copied or derived from the Design Framework II product of Cadence.
The injunction further includes certain notice and reporting requirements to
be fulfilled by Avant!. As a condition of the foregoing terms, the
injunction requires that Cadence give security by December 22, 1998 in the
amount of $10,000,000 for the payment of such costs and damages as may be
suffered by Avant! if it is found to have been wrongfully enjoined. Finally,
the December 7, 1998 order lifts the previously-entered stay of proceedings
with respect to Cadence's claims that Avant! infringed its copyright and
misappropriated its trade secrets in its Design Framework II code.
On December 16, 1998, the Santa Clara District Attorney's office filed
criminal indictment, no. 206394, against Avant!, Eric Cheng, Eric Cho, Gerald
Hsu, Leigh Huang, Mitch Igusa, Y.Z. Liao, Mike Tsai and Stephen Tzyh-Lih Wuu.
The indictment charges the defendants of conspiring to commit trade secret
theft, trade secret theft, inducing the theft of a trade secret, conspiracy
to commit fraudulent practices in connection with the offer or sale of
security, and fraudulent practices in connection with the offer or sale of a
security. No proceedings are scheduled prior to the arraignment, which is
scheduled for January 11, 1999.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
Avant! Corporation
Date: December 22, 1998 /s/ David Stanley
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David Stanley
General Counsel
