Trade Secret Clashes in Cleantech

Environmentally friendly” isn’t so friendly anymore. Tesla Motors Inc., the high-profile purveyor of electric sports cars, is accusing a rival of stealing secrets from its new electric-hybrid sports sedan. With fortunes being pumped into new cleantech companies?last year, a record $3 billion was invested, according to Dow Jones VentureSource?the value of their patents and trade secrets is soaring. Gary Weiss, head of Orrick, Herrington & Sutcliffe’s IP practice, said he’s “absolutely” seen a pickup in trade secrets litigation in the cleantech area.

San Carlos?based Tesla filed suit recently in San Mateo County Court against Fisker Coachbuild, Fisker Automotive Inc., and two of the companies’ executives for allegedly stealing trade secrets to use in their own electric car, the Karma. The complaint claims that Tesla?which is backed by well-known venture capitalists and executives like the Google founders?hired Henrik Fisker and Bernhard Koehler to design the inside of its new sedan, known as the Whitestar project. Fisker, who has designed for BMW and Aston Martin, was paid about $800,000 for his work on the sports sedan, says Tesla. The two designers breached their contract by taking confidential information, Tesla claims, and started their own clean car project for Fisker Automotive. Tesla’s lawyer, Adam Belsky of San Francisco firm Gross Belsky & Alonso, says his client wants the money back plus additional damages and a permanent injunction.