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takyon writes:

Uber's attempt to move Waymo's trade secrets lawsuit out of an appeals court and to an arbitrator has not succeeded:

Alphabet Inc.'s Waymo can proceed with a planned October trial over claims Uber Technologies Inc. stole trade secrets for self-driving vehicles after a U.S. appeals court declined to punt the case to an arbitrator and rejected an effort to keep Waymo from seeing critical evidence.

Uber had argued the dispute should be considered in secret before an arbitrator because the heart of Waymo's allegations are related to the actions of engineer Anthony Levandowski, a former employee of both companies. Uber's appeal was rejected Wednesday by the U.S. Court of Appeals for the Federal Circuit in Washington, as was Levandowski's request that Waymo not be allowed to see a report by a cyberforensics firm that looked into Uber's purchase of his company, Otto LLC.

Levandowski's employment contract with Waymo included a broad provision that any disputes would go before an arbitrator. Waymo never sued Levandowski; instead the question of whether he violated that contract is before an arbitrator, with a hearing scheduled for April. A three-judge appeals court panel said that requirement didn't extend to Uber. Waymo pledged not to rely on the Levandowski employment contract in its case, though Uber argued that wasn't a realistic promise.

Also at Reuters.

Previously: Waymo Drops Three of Four Patent Claims Against Uber
Uber's Former CEO Travis and Google Co-Founder Both Face Deposition in Trade Secrets Case
Text Messages Between Uber's Travis Kalanick and Anthony Levandowski Released

Original Submission

takyon writes:

Google/Alphabet/Waymo's case against Uber has been dealt a setback following a number of unfavorable rulings:

A federal judge threw out a key trade-secret theft claim in the Alphabet Inc.'s unit lawsuit alleging that one of its former engineers schemed with the ride-hailing giant to steal critical know-how. The judge also rejected a technical analysis by one of Waymo's expert witnesses. In addition, he dismissed one of the defendants in the case, which will put more pressure on Waymo to prove that Uber itself engaged in misconduct independent of whether the engineer misappropriated proprietary information.

Legal experts said they can't read too much into the judge's ruling narrowing the list of trade secrets to be presented to a jury to eight from nine because many of the court documents describing the details of each secret are sealed from public view. The dismissal of the one claim won't reduce the $1.86 billion in damages Waymo is seeking because that figure is based on a different trade secret. Waymo was originally pursuing 121 separate claims but was ordered by Alsup to whittle them down to keep the case from becoming unwieldy.

[...] A spokesman for Uber said the rulings point to Waymo's "ever-shrinking case." [...] Waymo said in an emailed statement its inspections of Uber's devices, photos and digital drawings show Uber is using Waymo's trade secrets and copied its LiDAR designs "down to the micron."

Also at Recode and Ars Technica.

Previously: Waymo Drops Three of Four Patent Claims Against Uber
Text Messages Between Uber's Travis Kalanick and Anthony Levandowski Released
Waymo v. Uber Continues, Will Not Move to Arbitration
Alphabet Seeking $2.6 Billion in Damages From Uber

Related: Alphabet Leads $1 Billion Round of Investment in Lyft

Original Submission

takyon writes:

A whistleblower from Uber's former "Strategic Services Group" has caused the Waymo v. Uber trial to be delayed again because Uber withheld evidence:

An Uber Technologies Inc. whistle-blower made explosive allegations that a company team stole trade secrets to gain an edge over rivals, prompting a judge to further delay the ride-hailing company's trial with Waymo.

Richard Jacobs, who worked for a now-disbanded corporate surveillance team at Uber, told the judge that stealing trade secrets was part of his former colleagues' mission, along with monitoring information on metrics and incentives for drivers who operate on competitor platforms overseas.

Jacobs was put under oath at a hearing Tuesday after the judge was alerted last week by U.S. prosecutors that he communicated with them in their probe of trade-secret theft at Uber. U.S. District Judge William Alsup said he takes Jacobs's account seriously because prosecutors found it credible.

[...] Jacobs testified that the surveillance team used "anonymous servers" separate from the "main part of Uber." He was asked by a lawyer for Waymo about a staff attorney at Uber who allegedly guided efforts to "impede, obstruct, or influence" lawsuits against the company.

Also at Reuters, BBC, and Recode.

Previously: Waymo v. Uber Continues, Will Not Move to Arbitration
Alphabet Seeking $2.6 Billion in Damages From Uber
Waymo's Case Against Uber "Shrinks" After Trade Secret Claim Thrown Out

Original Submission

Arthur T Knackerbracket writes:

Arthur T Knackerbracket has found the following story:

After a three-year battle in which he spent up to $1000 an hour on lawyers, Swildens ended up selling Speedera at a discount to Akamai for $130 million.

The experience left Swildens with a working knowledge of intellectual property battles in the tech world, and a lingering soft spot for others facing hefty patent claims. So when he heard in February that the world's second-most valuable company, Alphabet, was launching a legal broadside at Uber's self-driving car technology, he put himself in then-CEO Travis Kalanick's shoes: "I saw a larger competitor attacking a smaller competitor...and became curious about the patents involved."

In its most dramatic allegations, Waymo is accusing engineer Anthony Levandowski of taking over 14,000 technical confidential files to Uber. But the company also claimed that Uber's laser-ranging lidar devices infringed four of Waymo's patents.

"Waymo developed its patented inventions...at great expense, and through years of painstaking research, experimentation, and trial and error," the complaint read. "If [Uber is] not enjoined from their infringement and misappropriation, they will cause severe and irreparable harm to Waymo."

But Swildens had a suspicion. He dug into the history of Waymo's lidars, and came to the conclusion that Waymo's key patent should never have been granted at all. He asked the US Patent and Trademark Office (USPTO) to look into its validity, and in early September, the USPTO granted that request. Days later, Waymo abruptly dismissed its patent claim without explanation. The USPTO examiners may still invalidate that patent, and if that happens, Waymo could find itself embroiled in another multi-billion-dollar self-driving car lawsuit—this time as a defendant.

Original Submission

takyon writes:

A redacted copy of the letter that caused the Waymo v. Uber trial to be delayed (again) has been released:

At first glance, the Jacobs letter [is] an incredibly detailed accounting of multiple unlawful actions by the ride-hail company. He alleges that Uber's secretive Strategic Services Group (SSG) "frequently engaged in fraud and theft, and employed third-party vendors to obtain unauthorized data or information." He also accuses Uber security officers of "hacking" and "destruction of evidence related to eavesdropping against opposition groups." And he says Uber's ex-CEO Travis Kalanick knew about a lot of it.

Another Uber employee, Nicholas Gicinto, along with SSG, conducted "virtual operations impersonating protesters, Uber partner-drivers, and taxi operators." These Uber security employees went to great lengths to hide their surveillance activities from the authorities, Jacobs says. They used computers not purchased by Uber that ran on Mi-Fi devices, so the traffic wouldn't appear on Uber's network. They also used virtual public networks and "non-attributable architecture of contracted Amazon Web Services" to further conceal their efforts, Jacobs alleges. Who were they surveilling? Jacobs says SSG's targets included "politicians, regulators, law enforcement, taxi organizations, and labor unions in, at a minimum, the US."

And then there was Uber's innocuously named Marketplace Analytics team. Jacobs says this group was responsible for "acquiring trade secrets, codebase, and competitive intelligence... from major ridesharing competitors globally." According to Jacobs, Marketplace Analytics impersonated riders and drivers on competitor platforms, hacked into competitor networks, and conducted unlawful wiretapping.

In one of the weirder sections, Jacobs alleges that Uber's surveillance team infiltrated a private event space at a hotel and spied on the executives of a rival company so they could observe, in real time, their reactions to the news that Uber had received a massive $3.5 billion investment from Saudi Arabia. That eavesdropping was directed by ex-Uber security chief Joe Sullivan at the behest of Kalanick, Jacobs says.

Uber calls Richard "Ric" Jacobs "an extortionist", but the judge in the case disagrees.

Also at NYT and Recode.

Previously: Uber Evaded Law Enforcement With "Greyball"
Real-Life Example of Uber's Regulator-Evading Software
A Spectator Who Threw A Wrench In The Waymo/Uber Lawsuit

Original Submission

takyon writes:

The Fall of Travis Kalanick Was a Lot Weirder and Darker Than You Thought

A year ago, before the investor lawsuits and the federal investigations, before the mass resignations, and before the connotation of the word "Uber" shifted from "world's most valuable startup" to "world's most dysfunctional," Uber's executives sat around a hotel conference room table in San Francisco, trying to convince their chief executive officer, Travis Kalanick, that the company had a major problem: him.

[...] [A] top executive excused herself to answer a phone call. A minute later, she reappeared and asked Kalanick to step into the hallway. Another executive joined them. They hunched over a laptop to watch a video that had just been posted online by Bloomberg News: grainy, black-and-white dashcam footage of Kalanick in the back seat of an UberBlack on Super Bowl weekend, heatedly arguing over fares with a driver named Fawzi Kamel. "Some people don't like to take responsibility for their own shit!" Kalanick can be heard yelling at Kamel. "They blame everything in their life on somebody else!"

As the clip ended, the three stood in stunned silence. Kalanick seemed to understand that his behavior required some form of contrition. According to a person who was there, he literally got down on his hands and knees and began squirming on the floor. "This is bad," he muttered. "I'm terrible." Then, contrition period over, he got up, called a board member, demanded a new PR strategy, and embarked on a yearlong starring role as the villain who gets his comeuppance in the most gripping startup drama since the dot-com bubble. It's a story that, until now, has never been fully told.

The article discusses a number of Uber and Kalanick scandals/events, including:

• The #DeleteUber movement following Uber being accused of breaking up an airport taxi strike (which was in protest of President Trump's executive order restricting travel from Muslim countries), as well as Kalanick's decision to join President Trump's business advisory council (and later leave it).
• Susan Fowler's blog post recounting sexual harassment at Uber, and the hiring of former U.S. attorney general Eric Holder to investigate the claims.
• The revelation of Uber's Greyball system, which was used to avoid picking up law enforcement and taxi inspectors.
• Uber's purchase of self-driving truck startup Otto, which eventually led key Uber investor Google (Waymo) to sue Uber, seeking billions in damages.
• Kalanick's "inexplicable" support of Anthony Levandowski, who he called his "brother from another mother", even after Levandowski stopped defending Uber in the Waymo v. Uber case.
• Kalanick's apology to the taxi driver Fawzi Kamel, which amounted to a $200,000 payoff.
• A visit to a Seoul escort-karaoke bar that resulted in an HR complaint and a report in The Information.
• Uber's president for Asia-Pacific Eric Alexander obtaining a confidential medical record of passenger who was raped by an Uber driver in Delhi, India. Alexander, Kalanick, and others discussed a theory that their Indian competitor Ola faked/orchestrated the rape.
• Kalanick making his presence known during a "leave of absence" by trying to maintain control over the company and its board.
• Arianna Huffington promoting her wellness company's products while acting as Kalanick's apparent proxy on the board.
• The new CEO Dara Khosrowshahi's response to the city of London revoking Uber's operating license.

Original Submission

An Anonymous Coward writes:

https://www.theverge.com/2018/1/30/16948356/waymo-google-fiat-chrysler-pacfica-minivan-self-driving

Waymo, the self-driving unit of Google parent Alphabet, has reached a deal with one of Detroit's Big Three automakers to dramatically expand its fleet of autonomous vehicles. Fiat Chrysler Automobiles announced today that it would supply "thousands" of additional Chrysler Pacifica minivans to Waymo, with the first deliveries starting at the end of 2018.

Neither Waymo nor FCA would disclose the specific number of vehicles that were bought, nor the amount of money that was trading hands. The manufacturer's suggested retail price for the 2018 Chrysler Pacifica hybrid minivan starts at $39,995. A thousand minivans would cost $40 million, so this was at the very least an eight-figure deal.

Waymo currently has 600 of FCA's minivans in its fleet, some of which are used to shuttle real people around for its Early Rider program in Arizona. The first 100 were delivered when the partnership was announced in May 2016, and an additional 500 were delivered in 2017. The minivans are plug-in hybrid variants with Waymo's self-driving hardware and software built in. The companies co-staff a facility in Michigan, near FCA's US headquarters, to engineer the vehicles. The company also owns a fleet of self-driving Lexus RX SUVs that is has been phasing out in favor of the new minivans. (The cute "Firefly" prototypes were also phased out last year.)

Also at Ars Technica and Bloomberg.

Previously: Apple Expands Self-Driving Fleet From 3 to 27 Cars

Original Submission

takyon writes:

Engineer spends $6,000 invalidating Waymo's lidar patents

An engineer with no connection to the self-driving industry has spent $6,000 of his own money to stop Alphabet's self-driving car business Waymo from patenting key technology. Following a challenge filed by Eric Swildens, the US Patent and Trademark Office (USPTO) rejected 53 out of 56 claims in Waymo's 936 patent. The reason for his action? He just "couldn't imagine the [lidar] circuit [described in the 936 patent] didn't exist prior," Ars Technica reported.

Filed in 2013 and granted in 2016, the 936 patent was a cornerstone of Waymo's lawsuit against Uber, which began in December 2016. In a nutshell, Waymo accused the ride-hailing giant of infringing its lidar design patent and using intellectual property allegedly stolen by engineer Anthony Levandowski. Uber eventually agreed to redesign its lidar and gave Waymo $245 million worth of equity to settle the rest of the lawsuit. It also promised not to copy Waymo's technology in the future.

Uber got slammed for nothing!

Previously: A Spectator Who Threw A Wrench In The Waymo/Uber Lawsuit
Waymo and Uber Abruptly Settle for $245 Million

Related: Waymo's Case Against Uber "Shrinks" After Trade Secret Claim Thrown Out
Waymo v. Uber Jury Trial Begins

Original Submission

takyon writes:

Uber is just too underhanded to play the underdog against Waymo

The most remarkable thing about Waymo v. Uber is that so many of the people following the lawsuit are essentially rooting for Google to crush a smaller firm with a lawsuit. It's a tale as old as time: a maverick upstart galls a bigger, more established competitor, and the bigger guy strikes back in the courts. It's practically an American fairy tale, and yet Uber's lawyers are hard-pressed to get this archetypal narrative to stick. Nobody sees Uber as the underdog.

For one thing, through a collision of multiple scandals, Uber has become extraordinarily unpopular, and the discovery process in this lawsuit hasn't done much to alleviate its reputation as an unethical, underhanded company. But the other part is that the supposed maverick upstart hasn't managed to get one over the complacent megacorporation.

Former Uber CEO Travis Kalanick says that Google is (and was) in the lead when it comes to self-driving cars.

Charles Verhoeven, lead attorney for Waymo, ended his questioning of Kalanick by asking him about a note that said, "Cheat codes. Find them. Use them."

When Waymo attorney Charles Verhoeven took over again to interrogate him, he returned to cheat codes. "In the context of video games, you know what a cheat code is?"

"Yes," Kalanick replied. "But those codes in those games are put there on purpose by the publisher of the games and they want the players to have them. It's part of the fun of the game."

"That's just the game," he added, before Verhoeven could continue.

Verhoeven tried again, "A cheat code allows you to skip ahead, allows you to skip a level and not do the work."

"No — " Kalanick began to say, before Verhoeven quickly turned to the judge and said, "That's it, your honor." And with that, Travis Kalanick exited the courtroom.

Verhoeven was also able to play the "Greed is Good" scene from the 1987 film Wall Street for the jury because Anthony Levandowski (the engineer accused of stealing trade secrets from Waymo) had sent a link to it to Kalanick.

Previously: Text Messages Between Uber's Travis Kalanick and Anthony Levandowski Released
Waymo's Case Against Uber "Shrinks" After Trade Secret Claim Thrown Out
Uber v. Waymo Trial Delayed Because Uber Withheld Evidence
A Spectator Who Threw A Wrench In The Waymo/Uber Lawsuit
Waymo v. Uber Jury Trial Begins

Original Submission