Ride-hailing giant Uber has settled its legal battle with self-driving car development company, Waymo, after claims of trade secret theft.
The settlement sees Uber conceding $245 million (approximately £177 million) in the form of a 0.34 per cent stake in Uber to Waymo.
The dispute traces back to early 2017 when Waymo accused Uber of using its trade secrets. Uber had purchased Otto, a self-driving trucking company co-founded by a former Google employee, Anthony Levandowski.
Levandowski was previously working with Google before he co-founded Otto. Uber’s acquisition of Otto for $650 million in 2016 triggered the suspicion and subsequent lawsuit.
Waymo alleged that Levandowski downloaded over 14,000 confidential files before leaving Google. These files purportedly contained schematics and designs for Waymo’s LiDAR system, a crucial component in autonomous vehicle technology.
According to Waymo, these files were later used by Uber to advance its self-driving vehicle program. Although Uber has consistently denied these allegations, the evidence presented prompted a thorough investigation.
Uber’s CEO Dara Khosrowshahi has maintained that the company never used Waymo’s proprietary information.
In an official statement, Khosrowshahi said, “While we do not believe that any trade secrets made their way from Waymo to Uber, nor do we believe that Uber has used any of Waymo’s proprietary information in its self-driving technology, we are taking steps with Waymo to ensure our LiDAR and software represent just our good work.”
Khosrowshahi admitted that the acquisition of Otto could have been handled differently and expressed a commitment to learning from this incident.
Under the settlement terms, Uber agreed to provide Waymo with a 0.34 per cent stake in its company, equivalent to $245 million. Additionally, Uber has agreed not to incorporate Waymo’s technology into its self-driving cars.
The settlement prevents a lengthy and potentially damaging court battle, allowing both companies to move forward.
Waymo expressed satisfaction with the settlement, highlighting the importance of protecting intellectual property.
In a public statement, a Waymo spokesperson stated, “We are committed to working with Uber to ensure that each company develops its own technology independently.”
The company also emphasised that this settlement underscores the value of Waymo’s technology and the importance of corporate responsibility in the tech industry.
Both Uber and Waymo continue to advance in the realm of autonomous vehicle technology. The settlement allows Uber to focus on its autonomous driving ambitions without the overhang of this lawsuit.
With this legal hurdle cleared, both companies can now dedicate resources towards innovation and development in the highly competitive field of self-driving technology.
The settlement has been closely watched by the tech industry, given the high stakes involved in autonomous vehicle development.
Industry observers note that this case highlights the critical importance of securing intellectual property and the potential repercussions of failing to do so.
This settlement marks a significant chapter in the evolving landscape of autonomous vehicle technology.
The agreement allows both companies to move past their disputes and concentrate on future innovations, benefiting the broader tech industry.
Ultimately, safeguarding intellectual property remains paramount as companies navigate this rapidly advancing sector.
