Electric aircraft manufacturers Wisk and Archer Aviation have put an end to their protracted legal dispute, choosing collaboration over conflict in a surprising turn of events. The two rivals, who had been entangled in a bitter trade secret lawsuit for over two years, have now agreed to work together. Additionally, Archer has committed to incorporating Wisk’s autonomy technology into a forthcoming autonomous version of its Midnight aircraft, as part of the settlement terms.
Archer recently announced securing $215 million in fresh capital from backers including Boeing, Stellantis, United Airlines, Ark Investment Management LLC, and others. This investment is intended to expedite Archer’s path to commercialization, with Boeing’s portion of the funding allocated to support the partnership between Wisk and Archer on autonomy technology integration.
Boeing’s involvement in Wisk dates back several years, with significant investments amounting to hundreds of millions of dollars. Wisk, once a joint venture between Boeing and Kitty Hawk, transformed into a fully-owned subsidiary of Boeing earlier this year.
The resolution of the legal dispute encompasses various aspects:
- Collaboration: The two companies will put aside their legal differences and collaborate on shared goals within the electric aviation sector.
- Exclusive Autonomy Provider: Wisk will become Archer’s exclusive provider of autonomy technology for the autonomous version of Archer’s Midnight aircraft. This step highlights the companies’ intention to pool their expertise and resources to drive progress in this cutting-edge field.
- Stock Options: Archer has granted Wisk the option to acquire up to 13,176,636 shares of common stock at a price of $0.01 per share.
This settlement brings closure to a lengthy court battle initiated when Wisk accused Archer of unlawfully acquiring confidential information and intellectual property, including over fifty trade secrets allegedly pilfered by a former Wisk employee later employed by Archer.
Despite multiple attempts at mediation, the dispute seemed set for trial, scheduled for September 12, 2023. However, the eleventh-hour settlement averted the trial and marked a new chapter in the relationship between the two companies.
Archer’s advancements in electric aviation have been noteworthy, with the recent certification of its electric aircraft, Midnight, for flight test operations by the U.S. Federal Aviation Administration (FAA). This significant milestone propels Archer closer to achieving full certification for commercial service.
Notably, Archer’s successes this year also include the appointment of former FAA administrator Billy Nolen as Chief Safety Officer and a deal with the U.S. Air Force for the purchase of up to six electric aircraft worth up to $142 million.
The unexpected reconciliation between Wisk and Archer exemplifies a desire within the electric aviation industry to overcome differences and pool resources for the collective advancement of sustainable air travel.
