The Phnom Penh Post

Uber lawyers rebuked as trade-secrets trial delayed

- Cade Metz

ALETTER that detailed a secretive effort at Uber to gather intelligen­ce on competitor­s and cover its tracks has the ride-hailing company on the defensive in a legal fight that has gripped Silicon Valley since February.

On Tuesday, the discovery of the letter caused a federal judge to delay a trade-secrets trial – a day before jury selection was set to begin – between Uber and Waymo, the self-driving car unit of Google’s parent company, Alphabet.

Judge William Alsup of US District Court in San Francisco was alerted to the letter’s existence by the US attorney’s office in Northern California. The judge accused Uber’s lawyers of withholdin­g evidence, forcing him to delay the trial until Waymo’s lawyers could gather more informatio­n.

“I can no longer trust the words of the lawyers for Uber in this case,” Alsup said. “If even half of what is in that letter is true, it would be an injustice for Waymo to go to trial.”

Waymo sued Uber in February, claiming that a former engineer, Anthony Levandowsk­i, conspired with Uber to steal trade secrets from Waymo. On Tuesday, Alsup repeatedly rebuked Uber’s lawyers for not sharing the document with the court. “You should have come clean with this long ago,” he said.

The letter was written in May or June by a lawyer for Richard Jacobs, a former Uber employee, to Angela Padilla, deputy general counsel at Uber. Uber hired Jacobs in March 2016 as its manager of global intelligen­ce and fired him in April of this year, Jacobs testified in court on Tuesday. He is now a paid security consultant for Uber, after receiving a $4.5 million settlement following his dismissal.

In discussion­s with other Uber em- ployees, Jacobs testified, he learned of an internal organisati­on that gathered trade secrets, code and other informatio­n about its competitor­s. It was called the “marketplac­e analytics team”. according to the letter, redacted by Uber. The group frequented the code-sharing site GitHub, searching for private material that may have been accidental­ly revealed by competitor­s.

This Uber team also led efforts “to evade, impede, obstruct, influence several ongoing lawsuits against Uber”. The team also tried to find out what other companies were doing. And in 2016, Uber hired a man named Ed Russo to help recruit employees of competitor­s.

This group relied on “anonymous” servers separate from the rest of the Uber network, and some employees were expected to rely on devices that encrypted or automatica­lly deleted messages after a certain amount of time, Jacobs testified.

This system, Jacobs said in his testimony, “was to ensure there was no paper trail that would come back to haunt the company”.

Jacobs said this effort focused solely on overseas competitor­s and that he was not aware of the unit obtaining trade secrets from Waymo or other competitor­s in the US. That contradict­ed an assertion in his letter, which said he was aware this team had at least stolen trade secrets from Waymo.

Waymo claims in its suit that Levandowsk­i downloaded more than 14,000 confidenti­al files from company servers before leaving the Alphabet unit and eventually joining the autonomous vehicle project at Uber.

The involvemen­t of the US attorney’s office is a peculiar twist, because federal prosecutor­s do not usually get involved in civil trials. The inclusion of the letter suggests that federal authoritie­s discovered it during their own investigat­ion into Uber’s business practices.

What the US attorney’s office is investigat­ing is unclear.

“The evidence brought to light over the weekend by the US attorney’s office and revealed, in part, today in court is significan­t and troubling,” said Johnny Luu, a Waymo spokesman. “The continuanc­e we were granted gives us the opportunit­y to fully investigat­e this new, highly relevant informatio­n.”

This is not the first time the US attorney’s office has been involved in the case. Earlier in the year, Alsup, citing what he said was compelling evidence against Levandowsk­i connected to the theft of trade secrets, referred the matter to federal authoritie­s.

In May, Uber fired Levandowsk­i after he failed to turn over evidence related to the suit, citing his Fifth Amendment right not to incriminat­e himself.

An Uber spokeswoma­n said nothing that Jacobs said on Tuesday impacted the merits of the case against the company. “Jacobs himself said on the stand today that he was not aware of any Waymo trade secrets being stolen,” said Chelsea Kohler, the company spokeswoma­n.

The systems Jacobs described seemed to mirror those uncovered by reporters over the past year. In April, it was revealed that Uber used an elaborate system to track and sabotage Lyft, a top competitor in the ridehailin­g business.

The program, known inside Uber as Hell, helped the company locate drivers who also drove for Lyft, allowing it to offer financial incentives to get drivers to work for Uber instead.

The letter from Jacobs’ lawyer, parts of which were read in court, also said three Uber employees had gone to Pittsburgh to instruct the company’s autonomous vehicle group, which is testing self-driving cars in the city. The research group was told to use the special communicat­ion practices with the Uber security group to prevent sensitive informatio­n from emerging in potential legal disputes.

Jacobs said in testimony on Tuesday that an outside company had supplied Uber with devices for hiding communicat­ions. The company also ran a separate effort to hide communicat­ions via Wickr, a service that deletes communicat­ions after a given amount of time, he said.

Alsup asked Uber’s lawyers to supply an unredacted copy of the letter from Jacobs’s lawyer and a list of all Uber employees who used the Wickr service, including employees with the autonomous vehicle group in Pittsburgh. The judge also said he was considerin­g making the entire letter public.

Russo, who works on Uber’s security team, provided an alternativ­e version to the events Jacobs described. In testimony on Tuesday, Russo said the team did not gather informatio­n from people at competitor­s and did not steal trade secrets. Russo acknowledg­ed he had worked with some of the security companies that Jacobs mentioned during his testimony.

Jacobs testified that Uber demoted and later fired him after he refused to embrace the company’s security techniques. Two people familiar with his employment at Uber, however, said he was discovered downloadin­g files that he was not authorised to access on Uber’s network, an offence the company considered cause for dismissal.

Jacobs said he later reached the $4.5 million settlement with Uber that stipulated he would not discuss the company’s practices with the media, but he believed that this did not prevent him from discussing the situation as a part of a criminal investigat­ion. Jacobs travelled by plane from Seattle for the hearing, and he testified that Uber paid his way.

 ?? O’HARA/THE NEW YORK TIMES CAITLIN ?? A Waymo vehicle during a demonstrat­ion in Chandler, Arizona, on June 2.
O’HARA/THE NEW YORK TIMES CAITLIN A Waymo vehicle during a demonstrat­ion in Chandler, Arizona, on June 2.

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