Wisk Aero and Archer Aviation will enter arbitration for the second time at the end of March, after rivals launched a bitter legal battle over Wisk’s allegations that the new air taxi entrant stole trade secrets. Almost two years later, TechCrunch has learned exclusively.
A spokesperson for Archer said of the arbitration, “While we remain open about the possibility of resolving this case, we strongly believe Wisk’s claims are baseless. TechCrunch commented to Wisk. I will contact you asking for and update the article if I get a response.
The two companies entered arbitration for the first time at some point before October 25 last year. According to a transcript of his Oct. 25 Zoom call between the parties’ attorneys and the judge in charge of the trade secrets lawsuit, the attorney representing Wisk said the two companies had mediated, but were unsuccessful. said there wasn’t. Wisk’s attorney, Yuri Kapgan, told the court that despite previous failures, Wisk did not oppose another settlement meeting or private mediation.
“We are open to exploring opportunities to resolve this case,” Archer attorney Josh Krevitt agreed.
Judge William Orrick told lawyers that even though Wisk and Archer had another private mediation, the case could be sent to the magistrate for a settlement conference.
“The pain of the litigation doesn’t seem to motivate the client as a reason for the settlement, so I hope something else happens — someone wise will help them see the benefits of the settlement.” .”He said.
Arbitration is often used in trade secret disputes because the proceedings remain confidential. Confidentiality can be of particular importance to plaintiffs when it concerns IP. Plaintiffs want to avoid exposing confidential information through open court filings and jury trial processes. Trade secret litigation, in particular, can be complex, lengthy, and costly for both parties, and many attorneys recommend meditation or settlement.
Wisk and Archer have been embroiled in a bitter trade secret lawsuit for almost two years. Both companies are developing electric aircraft. Founded in 2018, Archer hopes to develop an air taxi service as early as 2024. The company signed a major partnership with United Airlines to begin service, creating the first proposed route between Newark’s Liberty International Airport and downtown New York City’s Manhattan Heliport.
Whisk, a company spun out of a Kitty Hawk/Boeing joint venture, is developing a four-seater autonomous aircraft. The company unveiled its sixth-generation air taxi last October and said it plans to receive Federal Aviation Administration certification.
Wisk filed a lawsuit against Archer in April 2021, alleging that the eVTOL newcomer engaged in “brazen theft” of intellectual property and trade secrets. Since then, the legal battle has gotten more and more nasty, with Archer later asking the court to award him $1 billion in damages from the lawsuit. If mediation fails, Wisk and Archer agreed to a schedule for him to start trial on August 14, according to court documents.
