After more than two years of litigation, Electric aircraft developers Wisk and Archer Aviation have finally settled their trade secret dispute. The surprise resolution comes as a welcome relief to both parties, marking the end of a bitter court battle.
Collaboration and Exclusive Partnership
According to sources familiar with the settlement, Archer has agreed to collaborate with Wisk on autonomy technology for its future Midnight aircraft variant. Moreover, Wisk will become the exclusive provider of this technology for Archer’s autonomous aircraft. This partnership underscores the companies’ shared commitment to advancing electric aviation.
Boeing Supports Collaboration through Investment
In a separate announcement, Archer revealed it had secured $215 million in new capital from investors including manufacturing partner Stellantis, Boeing, United Airlines, and Ark Investment Management LLC. Notably, Boeing’s portion of this investment will support the collaboration between Wisk and Archer on autonomy technology.
While Boeing has not disclosed the exact amount invested, it’s worth noting that the company had previously invested $450 million in Wisk in January 2022. This significant investment further solidified Wisk as a fully-owned subsidiary of Boeing earlier this year.
Terms of Settlement
Under the terms of the settlement, Archer has agreed to grant Wisk an option to purchase up to 13,176,636 shares of common stock at $0.01 per share. The agreement also settles all previous claims and suits between the two companies, including Archer’s counter-suit seeking $1 billion in damages.
Wisk Spokesperson Comments
In a statement regarding the settlement, a Wisk spokesperson expressed satisfaction with the mutually agreeable resolution: "We are pleased to have reached a mutually agreeable settlement with Archer that resolves our concerns while also eliminating the need for a costly and distracting trial. Wisk is committed to working collaboratively within the industry and leading in autonomous passenger flight."
Background of the Dispute
The trade secret dispute between Wisk and Archer Aviation began in April 2021, when Wisk accused Archer of brazen theft of confidential information and intellectual property, including over fifty trade secrets. The alleged theft was committed by a former Wisk employee who later joined Archer.
Despite multiple mediation attempts, the two companies were unable to reach an agreement until now. In fact, the lawsuit was scheduled for trial on September 12, just days after the settlement was reached.
Archer Continues Path to Commercialization
While the legal battle with Wisk raged on, Archer made significant strides in advancing its electric aircraft technology. The company announced that it had received a crucial certification from regulators greenlighting its Midnight aircraft for flight test operations. This Special Airworthiness Certificate from the U.S. Federal Aviation Administration (FAA) marks an important step towards certifying Midnight before it can enter commercial service.
Other Notable Developments
In recent months, Archer has secured key partnerships and certifications that solidify its position as a leader in electric aviation:
- Former FAA Administrator Billy Nolen joined Archer as Chief Safety Officer in June 2023.
- The U.S. Air Force agreed to purchase up to six electric aircraft from Archer in August 2023 for $142 million.
Conclusion
The settlement between Wisk and Archer Aviation marks a significant milestone in the development of electric aviation. The collaboration on autonomy technology is a testament to the companies’ shared vision for advancing sustainable transportation solutions. With this new partnership, both companies can focus on pushing the boundaries of what’s possible in electric flight.
As the industry continues to evolve, we’ll be keeping an eye on these developments and reporting any updates that emerge.
