Fitbit Again Accused of Stealing Trade Secrets From Jawbone

Discussion in 'iOS Blog Discussion' started by MacRumors, Feb 7, 2017.

  1. MacRumors macrumors bot

    MacRumors

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    Even though Jawbone has confirmed that it's leaving the consumer wearables market to focus on clinical health products, the company has doubled down on its legal battle with former rival Fitbit, concerning the latter company's alleged theft of trade secrets (via TechCrunch).

    The U.S. International Trade Commission has already let Fitbit off the hook for the original claims, but Jawbone is now arguing that the agency only looked at a "limited number of allegations against Fitbit." To back up its argument that the issue remains unresolved, Jawbone referenced in a court filing this month that Fitbit is under investigation by a criminal grand jury concerning the trade secret theft, believing "the issue of what was stolen and by whom remains unresolved."

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    As of this week, the Justice Department and Department of Homeland Security have been conducting a grand jury probe into Fitbit for five months. Fitbit said that it's cooperating with the investigation "to demonstrate, once again, that these allegations are without merit," with a hearing set for February 15 amid the hopes that the case will finally be dismissed.

    The battle between the two companies goes back to 2015, when Jawbone claimed that Fitbit hired five Jawbone employees, who in turn brought with them more than 350,000 secret Jawbone files. According to the original lawsuit, Jawbone said "the files included information about materials, sensors and detailed breakdowns of its costs and profit margins."

    Fitbit said that once the files were discovered on a cloud-based backup service of a former Jawbone employee, they were immediately turned over to Jawbone. Ultimately, Fitbit argued that Jawbone's new investigation is built on the exact same "fictional allegations" already cleared by the ITC.
    Fitbit had a case against Jawbone of its own that it dropped last December because "there was no need to pursue the case" when Jawbone was no longer making and selling the products at issue in the lawsuit. Fitbit also cited Jawbone's financial trouble as a reason to end the lengthy court battle. Jawbone said Fitbit's decision to back out was a "misdirection" on Fitbit's part.

    Article Link: Fitbit Again Accused of Stealing Trade Secrets From Jawbone
     
  2. TwoBytes macrumors 68030

    TwoBytes

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    Stealing trade secrets and they still can't work out the bugs in their own software...
     
  3. honglong1976 macrumors 65816

    honglong1976

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    Of course they want to go legal. They want money! :)
     
  4. Relentless Power macrumors Penryn

    Relentless Power

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    You mean, Jawbone needs money. I do agree Jawbone is in a position where they have their backs against the wall. Litigation can take while before they obtain any monetary settlement. But, if Jawbone even thinks they are entitled to any money, they will see this lawsuit to the end.
     
  5. citi macrumors 65816

    citi

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    At least Fitbit didn't steal their battery technology. My god, I went through 10 jawbone bands until finally giving up completely.
     
  6. Relentless Power macrumors Penryn

    Relentless Power

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    Ten Jawbone bands? That's a quality control issue for sure.
     

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5 February 7, 2017