Dogfight

Director Graham Phero and Associate Michael Nathanson spoke with Aerospace Testing International on the surge in intellectual property (IP) legal action in the electric vertical takeoff and landing (eVTOL) aircraft industry.

The increase in litigation within the industry does not come as a surprise to Phero, “We would expect companies to act to protect their investments in an immature industry that isn’t profitable yet. Some are even in the same FAA testing programs.” He continued, “But there can only be one winner in terms of who brings the first air taxi to market. They need an edge on their competitors.”

With the amount of money eVTOL startups have invested in IP, Nathanson said the investments must be protected, but can also be “ammunition” for defensive legal actions. “Following the Wisk litigation, Archer stockpiled IP with acquisitions from Lilium and Overair. Now they are asserting those patents in the ITC action against Joby.”

Phero commented on the filing strategies for the industry, “Investors won’t invest in a startup unless there is a way for them to stop others from taking their market share, and that means a patent.”

Nathanson also noted that legal action can come at a cost for reputation in the industry, “Suppliers and the government might begin to view you as unreliable, and you miss out on future contracts. It weighs on the business.”

Phero remarked, “I expect more litigation in this space and further consolidation in the market. Now that it has started, I don’t think it is going to stop.”