Trade Secrets Litigation News

Tesla Motors looks like the big news of the week. At least, that is my impression from today's Google Alerts.

Edmunds Inside Line's Tesla Motors Sues Fisker Over Trade Secret reports:

SAN FRANCISCO — Tesla Motors filed suit on Monday in San Mateo Superior Court. The action contends that Denmark-born designer Henrik Fisker's company fraudulently agreed to take on Tesla's $875,000 design contract for the White Star sedan to gain access to confidential design information and trade secrets, according to media reports. Afterward, Fisker announced the Karma, a competing vehicle.

"It caused a slight delay in White Star because we could not use the Fisker styling," Tesla Chairman Elon Musk told The New York Times. "The styling was substandard compared to what he unveiled for his product. He gave us an inferior work product, and it's obvious why."

Autoweek's Tesla sues Fisker, alleges theft of trade secrets adds what I find to be a very interesting paragraph:

The contract had a non-exclusivity clause, which allowed Fisker to perform styling and design services for other companies. Henrik Fisker is a former Aston Martin designer who started his own company in 2005 to specialty BMW and Mercedes cars.

I have to wonder what this clause says. Right now, I am hearing Claude Rains decrying gambling at Rick's while pocketing his winnings. As for the trade secrets claim, I would think that a non-exclusivity clause acts as a warning sign to protect trade secrets.

With high stakes for Tesla and a lot of money on the line, this could be the trade secrets case of the year.