@mat_john: Not quite. Toshiba still has a lot of other subsidiary businesses that it can rely on, and Toshiba isn't down. They are dealing with idea theft. This lawsuit can probably pull something up for Toshiba if they win, which I am hoping they do, because SK Hynix has created a void in the Chip Market with more accessible people to trade with.
Both comments above are not addressing correctly Figure 2, which shows that Toshiba is #2 and SKHynix is #4 in NAND Flash market share, so as far as the NAND Flash business is concerned, it is hard to prove substantial impact to Toshiba from whatever SKHynix was doing. It could be just that NAND flash will become a bloody cost battleground and Toshiba wants a pre-emptive strike.
I wonder if Toshiba will be able to prove its trade secrets were stolen. Seems like a sticky international situation. (What companies proven ever their trade secrets were stolen and what recompense did they get?)
Good example. Settlement is probably the best option for all parties involved; but does that mean it could still be profitable to take trade secrets if you can make more than enough money to cover the settlement costs (assuming the ethics of stealing and risk of prison doesn't bother you).
I think Toshiba was right in filing the suit against SK Hynix. This probably will cause a shift in balance when a suit as big as 1.1 billion dollars will go out into the media. Toshiba has a huge contractor base, and SK Hynix will soon lose sales because Toshiba controls most of the market contractors in South-East Asia and the West.