Wisk Aero and archer aviation will enter mediation for a second time in late March, nearly two years after the rivals began a bitter court battle over Wisk’s allegations that the air taxi new entrant stole trade secrets, TechCrunch has exclusively learned.
“We remain open to a possible resolution of the case, but strongly believe that Wisk’s claims are without merit,” an Archer spokesperson said regarding the mediation. TechCrunch has reached out to Wisk for comment and will update the story if he responds.
The two companies entered mediation for the first time sometime before October 25 of last year. According to a transcript of an Oct. 25 Zoom call between lawyers for the parties and the judge assigned to the trade secrets lawsuits, a lawyer representing Wisk said the companies had conducted mediation, but had no success. Wisk’s lawyer, Yuri Kapgan, told the court that despite the earlier failure, Wisk did not object to another settlement conference or private mediation.
“We are certainly open to exploring opportunities to resolve this case,” agreed Josh Krevitt, the attorney representing Archer.
Judge William Orrick told the lawyers that they can still send the case to a trial judge for a settlement conference, even if Wisk and Archer conduct another private mediation.
“It doesn’t seem like the pain of litigation is motivating their clients as a reason to settle, so I hope there is something else that does, that some wise person helps them see the benefit of settlement.” he said.
Mediation is often used in trade secret disputes as the proceedings remain confidential. Confidentiality may be especially important to a plaintiff in an intellectual property case, as they may want to prevent confidential information from being disclosed in public court documents or during the jury trial process. Trade secret lawsuits in particular can also be complicated, time-consuming, and expensive for both parties, leading many attorneys to recommend meditation or settlement.
Wisk and Archer have been locked in a bitter lawsuit over trade secrets for nearly two years. Both companies are developing electric aircraft. Archer, which was founded in 2018, wants to develop an air taxi service from 2024; the company signed a major partnership with United Airlines to get the service up and running, with the first proposed route connecting Newark Liberty International Airport to the Midtown Manhattan Heliport in New York City.
Wisk, a company that grew out of a joint venture between Kitty Hawk and Boeing, is developing a four-seater autonomous aircraft. The company unveiled its sixth-generation air taxi in October last year, and the company said it intended to submit the vehicle for US Federal Aviation Administration certification.
Wisk filed the lawsuit against Archer in April 2021, alleging that the new eVTOL entrant had perpetrated “blatant theft” of intellectual property and trade secrets. Since then, the legal battle has only gotten nastier, with Archer later asking the court to award him $1 billion in damages for the lawsuit. If mediation fails, Wisk and Archer have agreed to a schedule that will see their trial begin on August 14, according to court documents.
