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News Story
Updated: 02/10/2018 01:19:00AM

Uber, Waymo settle trade secrets clash

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FILE - In this Dec. 13, 2016, file photo, the Waymo driverless car is displayed during a Google event in San Francisco. Uber is settling a lawsuit filed by Google’s autonomous car unit alleging that the ride-hailing service ripped off self-driving car technology. Both sides in the case issued statements confirming the settlement Friday, Feb. 9, 2018, morning in the midst of a federal court trial in the case. (AP Photo/Eric Risberg, File)

FILE- This Sept. 12, 2016, file photo, shows group of self driving Uber vehicles position themselves to take journalists on rides during a media preview at Uber's Advanced Technologies Center in Pittsburgh. Uber is settling a lawsuit filed by Google’s autonomous car unit alleging that the ride-hailing service ripped off self-driving car technology. Both sides in the case issued statements confirming the settlement Friday, Feb. 9, 2018, morning in the midst of a federal court trial in the case. (AP Photo/Gene J. Puskar, File)

By MICHAEL LIEDTKE and TOM KRISHER

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SAN FRANCISCO — Uber has settled a lawsuit alleging that it ripped off self-driving car technology from Google’s autonomous vehicle division.

Under the deal, Uber will pay Waymo, which is part of Alphabet, Inc., a settlement valued by Waymo at $245 million.

Both confirmed the settlement early Friday, four days into a federal court trial in the case.

Waymo says Uber agreed to take steps to make sure Waymo technology isn’t used in Uber’s autonomous vehicles.

Uber CEO Dara Khosrowshahi says in a printed statement that the company doesn’t believe trade secrets made their way from Waymo to Uber. He also says Uber is taking steps to make sure its self-driving vehicle research represents only Uber’s work.

“But the prospect that a couple of Waymo employees may have inappropriately solicited others to join Otto, and that they may have potentially left with Google files in their possession, in retrospect, raised some hard questions,” Khosrowshahi wrote.

In the lawsuit, Waymo contended that former Uber CEO Travis Kalanick teamed up with ex-Google engineer Anthony Levandowski to steal LIDAR laser sensor technology, which serves as the eyes of self-driving vehicles.

Waymo alleges that Levandowski heisted eight trade secrets from Google before leaving the company in January 2016. He founded his own startup, Otto, which Uber bought a few months later for $680 million. Kalanick has acknowledged discussing plans for Otto with Levandowski before he started it, though both he and Uber deny they ever used any Google technology to build a fleet of self-driving cars.

Kalanick was pressured by investors to step down as CEO a month after Levandowski’s firing, partly because of concerns about Waymo’s lawsuit.

According to Waymo, the settlement will be paid in Uber stock and is equal to 0.34 percent of the company’s value, which was $72 billion after its most recent fund-raising effort involving Japanese tech conglomerate Softbank.

In pretrial evidence gathering, a Waymo expert witness valued the alleged theft at nearly $2 billion. The judge in the case didn’t allow that figure into the trial.


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