Ford is facing a $1 billion IP lawsuit from software company Versata.

Versata sues Ford over alleged software theft

July 22, 2015 4:01 pm Published by Leave your thoughts

In the latest lawsuit coming out of the automaker industry, Ford is being sued for allegedly violating enterprise software solutions provider Versata's intellectual property rights by infringing on a piece of patented software.

The software in question is designed with the goal of helping automakers improve their product development by making sure each of a vehicle's components work with the rest of the design. Versata had contracted their software out to Ford for several years, and towards the end of 2014 the two companies were in the process of negotiating an extension on the contract. The deal fell apart however, and Ford terminated the relationship.

Ford claims that it developed and patented its own software to accomplish the same task in the wake of the deal falling apart. Following the company securing its patent, it filed a suit to check whether its program violated Vesata's IP. Before Ford's suit, filed in Michigan, could be resolved, Vesata filed its own lawsuit against the automaker in Texas, asking for an injunction and restitution.

Responding to the suit, Ford representatives said that their company's patented software does not use or infringe any Versata intellectual property and Versata has provided no basis for their claims against us," adding that they "are confident that we will ultimately prevail in this case and we look forward to the opportunity to present our evidence at trial."

With lawsuits in multiple states, it could be as long as a year before the case goes to trial.

No matter where you are with your company, it's important to contact a skilled business attorney as soon as possible. A lawyer can help protect your rights in case of litigation, and get you just compensation.

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