Joby Hit With $116.9 Million Trade-Secret Verdict

Jury found the eVTOL developer breached a confidentiality agreement and misappropriated technology related to aircraft air data probes.

Joby Hit With $116.9 Million Trade-Secret Verdict
[Credit: Air Force photo by Harlan Huntington]
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Key Takeaways:

  • A federal jury awarded aircraft component manufacturer Aerosonic nearly $116.9 million, finding Joby Aero breached a confidentiality agreement and willfully misappropriated trade secrets involving air data probes.
  • The dispute stemmed from Aerosonic providing Joby with proprietary engineering information under a nondisclosure agreement, after which Aerosonic alleged Joby used the data to develop its own probes following a refusal to sell the intellectual property.
  • Joby Aero denies the allegations, strongly disagrees with the verdict, and plans to vigorously pursue post-trial and appellate remedies, while also being involved in its own separate trade-secret case against a competitor.
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A federal jury in Tampa, Florida, has awarded aircraft component manufacturer Aerosonic nearly $116.9 million after finding Joby Aero breached a confidentiality agreement and willfully misappropriated trade secrets involving air data probes, according to the jury verdict entered Friday.

Probe Development Dispute

Aerosonic and Joby signed a nondisclosure agreement in 2021 before Aerosonic began supplying probes for Joby’s flight-test aircraft. According to a federal court order, Aerosonic provided Joby with engineering drawings, test procedures and reports, 3D models, wind-tunnel data and other proprietary information. Days after receiving its first probe in April 2022, Joby asked to purchase the intellectual property rights to Aerosonic’s air data probes, but Aerosonic refused.

“Instead, Joby continued to engage with Aerosonic about a potential business relationship and to solicit confidential, proprietary, and trade secret information about air data probes from Aerosonic,” Aerosonic alleged in its amended complaint.

The company claimed Joby had already decided to develop its own probes internally and later pointed to a distinctive interface geometry on Joby’s probe that it said matched a design contained in confidential Aerosonic engineering materials.

Aerosonic alleged Joby used its engineering information or reverse-engineered purchased probes while developing its own design. In allowing the case to proceed, the court said Aerosonic’s allegations supported an inference that Joby used its trade secrets through its engineering drawings and test data or through reverse-engineering the probes it purchased.

Jury Finds For Aerosonic

The jury found Joby liable for breach of the nondisclosure agreement and trade-secret misappropriation and determined the misappropriation was willful and malicious. Jurors awarded about $68.6 million for breach of the agreement, $29.9 million for trade-secret misappropriation and another $18.3 million in exemplary damages. The jury also rejected Joby’s counterclaims, including allegations that Aerosonic supplied defective probes.

Joby denied Aerosonic’s allegations and maintained that it developed its air data technology independently. The company can seek to have the verdict set aside or modified before pursuing an appeal.

“We strongly disagree with the verdict and intend to vigorously pursue all available post-trial and appellate remedies,” a Joby spokesperson told Reuters Monday.

The verdict comes as Joby pursues its own trade-secret case against eVTOL competitor Archer Aviation and former Joby employee George Kivork. Joby alleges Kivork took confidential company information before joining Archer, including material related to aircraft and business development.

Matt Ryan

Matt is AVweb's lead editor. His eyes have been turned to the sky for as long as he can remember. Now a fixed-wing pilot, instructor and aviation writer, Matt also leads and teaches a high school aviation program in the Dallas area. Beyond his lifelong obsession with aviation, Matt loves to travel and has lived in Greece, Czechia and Germany for studies and for work.
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