Ninth Circuit Torn Over Google’s Ban Against Lender in Chip Case

A Ninth Circuit panel appeared conflicted in oral argument over whether a venture lender should be barred from interfering with Google’s chip production during a trade secrets lawsuit, even though the lender may have rights to the disputed chip-making equipment.

Google argued the appeals court should uphold the injunction that’s in place because its agreement with now-shuttered CNEX Labs Inc. gave it a royalty-free license to independently manufacture chips if the semiconductor company closed. CNEX’s creditor Point Financial Inc. can’t now void the license and demand $17 million in royalties, the tech giant told the three-judge panel.

The judges pushed ...