A federal jury in Seattle has ordered Boeing to pay $72 million to Zunum Aero, an electric-aviation startup that alleged Boeing misappropriated trade secrets and interfered with its business plans. The jury’s verdict was seen as a vindication for Zunum Aero and its founders, who have been embroiled in a legal battle with Boeing for years. Boeing has indicated that it will challenge the judgment, arguing that the verdict is not supported by the law or the facts.
Zunum Aero, based in Bothell, Washington, was founded in 2013 and received funding from Boeing and JetBlue’s technology ventures fund. The company had ambitious plans to build hybrid-electric and all-electric aircraft and put the first planes into service in the 2020s. However, a cash shortage forced Zunum Aero to cut back on operations, leading to the legal dispute with Boeing. During the trial, Boeing claimed it had supported Zunum Aero and used the startup’s technical information for legitimate purposes.
The jury sided with Zunum Aero on multiple claims related to the misappropriation of trade secrets and interference with business relationships. The jury awarded $81.23 million for misappropriation claims and $11.56 million for interference claims. However, the jury also found that Zunum Aero failed to mitigate $20.82 million in damages, resulting in a net award of $71.97 million. Additionally, District Judge James Robart ordered Zunum Aero to repay $9 million in loans provided by Boeing, plus interest, out of the damages awarded.
After the verdict, Robart will consider post-trial motions challenging the award and decide whether to triple a portion of the damages under legal provisions for willful and malicious misappropriation of trade secrets. The outcome of the case could have significant implications for both Zunum Aero and Boeing, as well as the broader electric aviation industry. The case highlights the challenges faced by startups in the aviation sector, as they navigate complex relationships with established aerospace companies and seek to bring innovative technologies to market.
The legal battle between Zunum Aero and Boeing underscores the competitive nature of the aviation industry and the importance of protecting intellectual property and trade secrets. The outcome of the case could influence how companies collaborate and share information in the future. Despite the setbacks faced by Zunum Aero, the company’s founders are optimistic about its prospects and have expressed satisfaction with the jury’s verdict. The case serves as a cautionary tale for startups in the aviation sector, highlighting the risks and rewards of innovation in a highly competitive and regulated industry.
