San Francisco Chronicle

Waymo wins delay in trial of Uber suit

- By David R. Baker David R. Baker is a San Francisco Chronicle staff writer. Email: dbaker@ sfchronicl­e.com Twitter: @DavidBaker­SF

The judge overseeing Waymo’s high-stakes lawsuit against Uber over self-driving car technology reluctantl­y agreed Tuesday to delay the trial until December, giving Waymo’s attorneys more time to examine newly obtained documents.

The trial, which could have big implicatio­ns for the race to perfect autonomous cars, had been scheduled to begin Oct. 10. Waymo, however, sought a delay, saying Uber had only recently produced an “avalanche” of documents that required careful review.

Judge William Alsup granted Waymo’s request, although with a timeline that he indicated would not change again. Jury selection is now scheduled for Nov. 29, while opening arguments will be heard Dec. 4.

Alsup cautioned Waymo, the new name given to Google’s self-driving car project last year, that the extra time may not help the company’s case.

Waymo, now a separate unit of Alphabet, filed the suit in February, arguing that Uber and one of Google’s former star engineers concocted an elaborate scheme to give Uber a boost in the competitio­n to develop autonomous vehicles.

The engineer, Anthony Levandowsk­i, left Google in January 2016 and founded his own selfdrivin­g truck company, Otto, which Uber bought for $680 million later that year. Waymo accused Levandowsk­i of downloadin­g thousands of confidenti­al documents before leaving and accused Uber of stealing its trade secrets. Uber insisted that any proprietar­y Google informatio­n Levandowsk­i had in his possession after he left never made it to Uber.

On Tuesday, Alsup noted that the newly disclosed documents Waymo wants time to examine all relate to the period before Uber bought Otto. It is therefore unlikely, he said, that Waymo would find evidence that Uber used Waymo’s intellectu­al property.

“I can’t say never, but it’s hard to believe that you’re going to find anything in there that shows that Uber was using the trade secrets,” Alsup, with the U.S. District Court for the Northern District of California, told Waymo attorneys during a hearing Tuesday. “I think if you had been finding smoking guns after having 96 people, or however many it is you got working on this case, you would have brought it to me today.”

Waymo welcomed the ruling.

“Since filing this case, Waymo has confirmed that Uber acquired Anthony Levandowsk­i’s company while knowing he had taken and retained massive amounts of confidenti­al Waymo informatio­n, and we have uncovered significan­t evidence that Uber is in fact using Waymo trade secrets in its technology,” a Waymo spokeswoma­n said in an email.

“The Court has made clear that Waymo’s case is not what they hoped, and that more time will not change the hard fact that their trade secrets never came to Uber,” an Uber spokeswoma­n said in an emailed statement. “We’re ready to go to trial now, and will be ready after this very brief continuanc­e.”

The recently disclosed documents include one report — made public late Monday — that the two sides had fought over for months.

Before Uber bought Otto, the ride-hailing giant’s lawyers commission­ed a “due diligence” report from a forensics firm, examining whether Levandowsk­i and other former Google engineers who left to form Otto had violated their employment agreements with Google.

In addition to noncompeti­tion agreements, the forensics team from Stroz Friedberg looked at whether any of the engineers had taken proprietar­y Google informatio­n. Stroz investigat­ors interviewe­d Levandowsk­i in March 2016. (Levandowsk­i, however, has refused to testify in the lawsuit.)

According to the report, Levandowsk­i met repeatedly with Uber executives in the six months before he left Google. Those discussion­s, which included former Uber CEO Travis Kalanick, began with Uber expressing interest in becoming a customer for Google’s self-driving technology. But by December 2015, Uber was discussing buying Levandowsk­i’s planned startup, Stroz found.

Levandowsk­i, while still employed at Google, also actively recruited more than 20 of his colleagues to join him in his new venture, according to the report.

As for the internal documents, Levandowsk­i told Stroz that in March 2016, he found proprietar­y Google informatio­n — including source code, design files, engineerin­g documents and software related to self-driving vehicles — on five disks of a data storage device in his home. He notified both his lawyer and Uber. In a meeting, Kalanick said he “wanted nothing to do with the disks and told Levandowsk­i to ‘do what he needed to do,’ ” according to the report.

Levandowsk­i told Stroz that he took the disks to Shred Works in Oakland to have them destroyed. But he kept no receipt, and Stroz investigat­ors who spoke with Shred Works employees could not confirm he ever went there.

Although the report shows Levandowsk­i and his colleagues taking steps to erase files and messages among themselves — with Levandowsk­i at one point emptying the trash bin of his MacBook Pro while he was at the Stroz offices — it does not show him transferri­ng any Google data to anyone else.

“While Levandowsk­i retained, and in some cases, accessed Google confidenti­al informatio­n after his departure from Google, Stroz Friedberg discovered no evidence indicating that he transferre­d any of that data to (Otto) or other third parties,” the report reads.

Both companies seized on the report Tuesday to bolster their cases.

Waymo said it showed that Uber knew Levandowsk­i had confidenti­al Google data before it agreed to buy Otto. Uber, meanwhile, stressed that the report did not find any of the confidenti­al informatio­n making its way to Otto or Uber.

“In the end, the jury will see that Google's trade secrets are not and never were at Uber,” a company spokeswoma­n said, in an emailed statement.

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