Ninth Circuit Rejects Boeing’s Jurisdictional Bid to Avoid $92 Million Trade Secret Verdict
The U.S. Court of Appeals for the Ninth Circuit rejected Boeing's petition to rehear its appeal in a trade secret dispute with Zunum Aero, ruling that Boeing's patent-inventorship counterclaims did not divest the court of jurisdiction. This decision leaves in place an earlier ruling that revived a jury verdict of over $92 million against Boeing.
WISECODE Take
Boeing’s attempt to shift jurisdiction in its trade secret dispute with Zunum Aero by filing patent counterclaims was rejected by the Ninth Circuit. Many business owners mistakenly believe that securing a patent can retroactively cover up early-stage trade secret misappropriation. This case highlights that patent rights and trade secret liabilities are legally distinct. The dispute arose from allegations that Boeing misused confidential info obtained during investment evaluations. The court ruled that Boeing's counterclaims on U.S. Patent No. 11,110,811 did not alter jurisdiction, keeping a potential $92 million verdict active. This proves that robust early-stage confidentiality measures can successfully challenge even patent-rich corporate giants. It is critical to establish strict information boundaries during early-stage collaborations. First, strictly limit the purpose of use in NDAs and track all technical disclosures. Second, maintain detailed R&D logs during collaborative projects to prove independent development. A patent cannot wash away the improper acquisition of technology; early-stage compliance is far more decisive than late-stage patent litigation.
Original sources
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