Joby Aviation Accuses Archer of Corporate Espionage in Lawsuit

Joby Aviation Files Suit Against Archer Aviation

Joby Aviation, a developer of electric air taxis, has initiated legal action against Archer Aviation. The allegations center around the purported use of stolen trade secrets to disrupt Joby’s business operations.

Details of the Lawsuit

The legal complaint, submitted on Thursday to the Superior Court of California in Santa Cruz County, levels a series of accusations against both Archer and a former Joby employee, George Kivork. Joby contends that Kivork, after being employed by Archer, misappropriated confidential trade secrets.

According to the lawsuit, Kivork allegedly downloaded a substantial amount of sensitive data just prior to his resignation. This data encompassed crucial details regarding partnerships, business strategies, regulatory plans, infrastructure development for vertiports and airport access, and technical specifications related to Joby’s aircraft and operational procedures.

Allegations of Information Disclosure

Joby asserts that Archer utilized this stolen information when engaging with one of Joby’s strategic partners. Specifically, Archer is accused of revealing confidential terms of an exclusive agreement between Joby and this partner. The complaint indicates that this information was exclusively known to Kivork and contained within the files he is alleged to have taken.

The lawsuit characterizes the actions as “corporate espionage, planned and premeditated,” stating that Joby was left with no alternative but to pursue legal recourse to safeguard its proprietary information.

Archer’s Response

Archer Aviation swiftly responded to the lawsuit, dismissing the claims as a distraction tactic.

Eric Lentell, Archer’s chief legal and strategy officer, stated in an email to TechCrunch that Joby’s case lacks merit. He emphasized that the complaint focuses on a non-technical employee in a business development role and fails to identify any specific trade secrets or evidence of misappropriation.

Lentell further asserted that Archer has robust employee onboarding protocols in place to prevent such incidents. He accused Joby of attempting to leverage the legal system unfairly to hinder legitimate competition.

Background of the Companies

Both Archer Aviation and Joby are California-based companies that became publicly traded in 2021 through mergers with special purpose acquisition companies (SPACs). Both firms are actively engaged in the development of electric air taxis and are also exploring applications of their technology within the defense sector.

Defense Applications

For example, Archer recently entered into an exclusive agreement with Anduril to co-develop a hybrid gas-and-electric VTOL aircraft for defense purposes. Meanwhile, Joby has established a collaboration with L3Harris Technologies to investigate the potential for a gas-turbine hybrid VTOL aircraft capable of autonomous flight.

Escalation of Competition

This lawsuit marks a significant escalation in the competitive dynamic between the two companies.

Previous Legal Challenges for Archer

Archer has faced legal challenges in the past. Wisk, a Boeing subsidiary, previously sued Archer in 2021 alleging “brazen theft” of confidential information and intellectual property. That case involved over 50 trade secrets allegedly stolen by a former Wisk employee who was subsequently hired by Archer.

The prior lawsuit concluded after a two-year legal battle with a settlement and an agreement for collaboration between the parties.