Pennsylvania residents in the tech industry may have heard that the communication networks developer SmartSky Networks filed a complaint against Wireless Systems Solutions. The lawsuit alleges breach of contract, misappropriation of trade secrets and violation of the North Carolina Unfair and Deceptive Trade Practices Acts.
The specifics of the business dispute include claims by SmartSky that WSS misused trade secrets and intellectual property that belonged to SmartSky. SmartSky also says that it was working with WSS to develop a wireless communications network when the company breached the $30 million contractual agreement between them.
SmartSky states that it began the payment of more than $30 million to WSS in 2018. The expectation for the wireless infrastructure company was development, testing and production of the components of a wireless communication network. SmartSky planned to own and operate the planned network, and the network was to be used by flight crews, airlines and air travelers.
The lawsuit alleges that WSS “failed to perform” as promised after the company “took the money.” The complaint further alleges that WSS funneled the trade secrets and intellectual property belonging to SmartSky to a sister company named DAG. This company is also a defendant in the lawsuit, which says WSS committed the violations with the intent to create a product that would compete with the one it promised to build for SmartSky.
SmartSky says that DAG is currently claiming it developed an exact duplicate of the system that WSS received millions of dollars to create for SmartSKy. The lawsuit also alleges that DAG is actively marketing the products associated with the system.
DAG says its development of the technology happened independent of SmartSky and WSS. DAG says the company had no access to intellectual property, money or materials that it did not own.
The lawsuit filed by SmartSky includes a total of 14 counts against WSS. Smartsky is asking the court to compensate the company for the damages it received and to have all the products owned by the company returned.
Business disputes often include complex legal concepts not encountered in the course of everyday life. These disputes are also likely to include large amounts of money and the power to determine the survival prospects of one or more of the businesses entities involved with the dispute. Individuals who become involved in a business dispute may find it helpful to move forward with an attorney at their side.