GlobalFoundries Sues IBM for Profiting From Unit It Spun Off (1)

GlobalFoundries Inc. filed a lawsuit against International Business Machines Corp., claiming that Big Blue is continuing to profit from a chip business that it spun off nearly eight years ago.

Recent IBM licensing deals with Intel Corp. and Rapidus Corp. are based on trade secrets acquired by GlobalFoundries in a 2015 transaction, the chipmaker said in a lawsuit filed Wednesday in New York. “IBM is unjustly receiving potentially hundreds of millions of dollars in licensing income and other benefits,” GlobalFoundries said in a statement.

The legal fight stems from the transfer of IBM’s chipmaking unit to GlobalFoundries, a ...