Last week, Waymo LLC sued Uber Technologies, Inc. for stealing its trade secrets and using its patents without permission. This case could be huge in regards to which company will dominate the self-driving car industry in the U.S.
What is Waymo?
Google has been developing self-driving technology since 2009. In 2016, the Google self-driving car project became Waymo, a stand-alone company, in 2016.
Waymo developed a LiDAR (Light Detection And Ranging) system for use in its vehicles – a laser-based scanning and mapping technology that allows the self-driving car to “see” its surroundings and navigate safely. Waymo has at least three registered patents for its LiDAR system. Additionally, Waymo has substantial confidential and proprietary information from its years of research and development which are company trade secrets. The company claims this information is shared only on a “need to know” basis and it takes additional steps to protect its proprietary information, including encrypted devices and passwords.
Did Uber Steal Waymo’s IP?
Uber’s been working on its self-driving car only since 2015. Several former Waymo employees work for Uber on its self-driving car project. (Non-compete agreements are not allowed under California law, so this is not surprising.)
According to the Complaint, a former manager at Waymo allegedly downloaded more than 14,000 confidential files, including Waymo’s LiDAR circuit board design prior to leaving Waymo and starting Ottomotto LLC in 2016. Ottomotto was later acquired by Uber. Other former Waymo employees are also accused of copying company proprietary files prior to leaving the company to work for Ottomotto or Uber.
Waymo learned that Uber’s LiDAR system, including its circuit board, is strikingly similar to Waymo’ proprietary secret design, which, given made the company suspect that these former employees intentionally misappropriated its trade secrets. The company also suspects Uber is infringing on multiple of its patents.
The Waymo v. Uber Lawsuit
Uber is accused of taking Waymo’s self-driving car technology instead of developing its own, intentionally misappropriating Waymo’s trade secrets, and using its patents without permission. The lawsuit contains four different claims against Uber:
- Violations of Defense of Trade Secrets Act
- Violations of California Uniform Trade Secret Act
- Patent Infringement
- Violations of California Business and Professions Code § 17200 (CA Unfair Competition Law)
After being served, Uber has a limited time to file a Response to Waymo’s Complaint and the case will proceed into the discovery process.
Waymo asked the court to award it damages, attorneys’ fees, and a permanent injunction to prevent Uber from using its patents and trade secrets. The majority of patent cases are settled before going to trial, and it is not uncommon for settlement to include a non-disclosure agreement, so the public may never know for certain how this case will end. However, we have a front-row seat to see which company brings its self-driving technology to market first.
One thing to note about this case, like many intellectual property infringement cases, is having to bring or fight a lawsuit takes time and money away from developing and marketing a product. Litigation is often a long and expensive process.
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Post written and edited by social media attorney Ruth Carter.