Fitbit is under investigation by a criminal grand jury in the US for allegedly stealing trade secrets from its rival Jawbone to make fitness devices.
Bloomberg reported the news citing a court filing by Jawbone, which claims that Fitbit poached its employees to gain knowledge of its key trade secrets.
Fitbit, which wants the lawsuit to be dismissed, is arguing that the US International Trade Commission had already analysed and rejected trade secret claims in Washington in October.
According to Bloomberg, Jawbone said the agency looked only at some allegations against Fitbit and had no authority to consider claims against the former employees who are also defendants in the lawsuit.
In last week’s filing, Jawbone said: “The evidence developed to date in this litigation confirms a conspiracy by Fitbit and the individual defendants to steal Jawbone’s coveted trade secrets and to use them to enhance Fitbit’s position in the marketplace, in clear violation of California law.”
Fitbit said there is no allegation or proof that the files Jawbone says were taken by its ex-employees were ever downloaded to or accessed on its systems.
The company noted that it turned over the files to Jawbone after identifying that a former employee had saved them on a cloud-based computer backup service.
A hearing in the case is set for 15 February.
This article is from the CBROnline archive: some formatting and images may not be present.
Join Our Newsletter
Want more on technology leadership?
Sign up for Tech Monitor's weekly newsletter, Changelog, for the latest insight and analysis delivered straight to your inbox.