Edmonton Journal

Uber vowed to cover legal fees for engineer over trade secrets

- JOEL ROSENBLATT

SAN FRANCISCO Uber made an unusual commitment to the engineer it hired to lead its driverless car project: It would cover the costs of legal actions against him over informatio­n stored in his head from his previous job at Waymo.

That promise — buried in the fine print of an otherwise straightfo­rward employment contract for an executive — emerged in documents unsealed last week in San Francisco federal court.

Waymo alleges that in 2015, Anthony Levandowsk­i and Uber Technologi­es Inc. hatched a plan for him to steal more than 14,000 proprietar­y files, including the designs for lidar technology that helps driverless cars see their surroundin­gs. Uber, which acquired Levandowsk­i’s startup, Otto, in August for US$680 million, has denied Waymo’s allegation­s.

The Alphabet Inc. unit’s claims were bolstered Wednesday when it told the court Uber has said that Levandowsk­i informed then-chief executive Travis Kalanick more than a year ago that he had five discs containing Google data. Kalanick told him not to bring the informatio­n to Uber, and Levandowsk­i said he then destroyed the files, according to the filing.

Even though neither of the men are still at the company — Kalanick stepped down this week while Levandowsk­i was fired last month — Uber has to defend itself from Waymo’s suit as well as a possible criminal probe after U.S. District Judge William Alsup asked prosecutor­s to take a look at the allegation­s.

Uber’s legal fees promise is further evidence that the talent competitio­n in the driverless car sector is cutthroat. It was a highly risky benefit to offer, according to Jim Pooley, a lawyer at Orrick in Menlo Park, Calif.

The indemnific­ation document may be “very powerful” evidence that Uber suspected Levandowsk­i would be taking proprietar­y informatio­n from Waymo, said Pooley, who is the author of the Secrets: Managing Informatio­n Assets in the Age of Cyberespio­nage.

“What Uber did was to leave the door open for Levandowsk­i to use whatever he remembered of Waymo’s trade secret informatio­n, so long as he didn’t deliberate­ly memorize it,” the lawyer said.

Waymo hasn’t sued Levandowsk­i directly. In its suit against Uber, the engineer has refused to testify, asserting his constituti­onal right not to incriminat­e himself. But if he is found to have broken the law, all bets could be off.

 ?? TONY AVELA/ THE ASSOCIATED PRESS/FILE ?? Travis Kalanick, left, and Anthony Levandowsk­i, cofounder of Otto, pose for a photo last August. Waymo alleges that in 2015, Levandowsk­i and Uber Technologi­es Inc. hatched a plan for him to steal more than 14,000 proprietar­y files.
TONY AVELA/ THE ASSOCIATED PRESS/FILE Travis Kalanick, left, and Anthony Levandowsk­i, cofounder of Otto, pose for a photo last August. Waymo alleges that in 2015, Levandowsk­i and Uber Technologi­es Inc. hatched a plan for him to steal more than 14,000 proprietar­y files.

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