Joby rival seeks dismissal of corporate espionage suit; case moved from Santa Cruz County to federal court

The electric helicopter company that Santa Cruz-headquartered Joby Aviation has accused of stealing trade secrets has filed a motion to dismiss, arguing that the suit is “a transparent attempt to slow its most formidable competitor.”

At issue is whether Archer Aviation hired away a Joby Aviation employee and used him to access confidential information to secure a deal with a real estate developer. The suit was filed in November in Santa Cruz County Superior Court, but the case has now been moved to federal court in San Jose with a hearing set for March 24.

Attorneys for Archer filed a motion last month to dismiss the case, which they said is “legally deficient.” In the motion, Archer attorneys argued that Joby’s suit “rests on speculation and innuendo, rather than plausible factual allegations.” They said the company is using litigation as a weapon as the race to be the first company to launch commercial electric air taxi service heats up.

Joby’s suit alleges Archer Aviation recruited George Kivork to work for the company last year. At the time, Kivork was Joby’s U.S. state and local policy lead, heading up lobbying efforts for policies that support introduction and operation of Joby’s electric air taxi service. According to Joby’s attorneys, that position gave him access to confidential and proprietary information about the company’s partnerships, regulatory strategies and more.

The suit accuses Kivork of downloading a cache of confidential Joby files two days before announcing his resignation. The suit also claims a major real estate developer approached Joby leaders three weeks later and told them Archer representatives had information about the confidential terms of a partnership the developer had with Joby. The company’s lawyers say Kivork was privy to that information and it was contained in the files he’s accused of stealing.

Under Joby’s suit, Archer is charged with seven counts, including inducement of breach of contract, trade secret misappropriation, and aiding and abetting breach of fiduciary duty. Another four counts have been filed against Kivork as an individual.

Archer and Joby have emerged as among the most prominent companies in the rapidly growing electric vertical takeoff and landing (eVTOL) space, with both working overtime to complete the five stages of the Federal Aviation Administration type-certification process. Both competitors seek to operate commercial passenger service similar to Uber or Lyft, with passengers hailing what’s essentially an electric helicopter. Joby officials have set an ambitious goal of launching its first commercial operations sometime this year, starting first in the Middle East.

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