It is possible that Twitter’s accusation that Meta Platforms stealing it’s trade secrets to develop its new microblogging site is the opening volley in a legal war between the social media titans, but experts say that Twitter would have to cross a high hurdle if it sues.
Twitter claim that Meta stealing trade secrets to build its new microblogging site.
Twitter claimed in a letter that it sent out on Wednesday that Meta utilized its trade secrets in the development of Threads, a new social media platform that Meta was working on. Twitter asked that Meta stop utilizing the material. Twitter stated that Meta had employed dozens of former Twitter workers, many of whom had “improperly retained” devices and data from the firm, and that Meta “deliberately” assigned these individuals to work on the Threads platform. Twitter also stated that these individuals had “improperly retained” devices and information from Twitter.
It was not obvious whether there would be a lawsuit filed or not.
A request for comment sent to Twitter was not immediately answered by a representative from the company. A spokesperson for Meta named Andy Stone stated on Thursday within a post made within Threads that none of the members of the site’s engineering staff previously worked for Twitter.
In spite of the fact that numerous businesses have leveled accusations of theft of trade secrets against rival businesses who have hired former employees and produce products that are comparable to their own, legal experts have stated that such accusations are difficult to prove.
According to Polk Wagner, a law professor at the University of Pennsylvania, in order for a firm to be successful, it must demonstrate that its competitor stole knowledge that was economically significant and that the company had taken “reasonable efforts” to keep secret.
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However, he acknowledged that determining what exactly constituted a “reasonable effort” might be a challenging endeavor.
It has been established beyond a reasonable doubt by the legal system that one cannot simply wave their hands and declare something to be a trade secret. On the other hand, you don’t need to lock everything down to the point where no one can use the information,” added Wagner.
DESIGNATING ‘SECRETS’
Since billionaire Elon Musk purchased the microblogging site a year ago, Twitter has alienated a significant number of its users as well as advertisers. On Wednesday, Meta unveiled Threads, which could be the first major threat to Twitter.
Threads, along with the plethora of other social media sites that have emerged in the past several months, is reminiscent in some ways of the popular microblogging service Twitter.
One factor that is considered by the courts is whether or not the corporation in question made it crystal apparent to its workforce that the material in question included a trade secret.
According to Sharon Sandeen, a professor at the Mitchell Hamline School of Law in St. Paul, Minnesota, firms have been found guilty of misappropriating trade secrets when they have claimed that employees are bound by broad agreements designating all of the company’s knowledge as confidential. In these circumstances, the companies have lost their cases.
She stated that the courts have ruled that employees have no means of understanding what information is secret and what information is not from such broad phrasing.
According to the opinions of several experts, businesses frequently launch trade secret cases only to discover that their claims do not have as much merit as they had originally believed.
Sandeen made reference to the high-profile court struggle that is now taking place between the Waymo self-driving vehicle arm of Alphabet (GOOGL.O) and the ride-share company Uber Technologies (UBER.N). She stated that the case started with charges of thousands of stolen documents, but it ultimately came down to a debate over a small handful of documents.
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On the eve of the trial, Uber reached a settlement with the plaintiffs for the sum of $245 million worth of its own shares.
According to Wagner, trade-secret cases seldom get to trial, but they frequently result in settlements.
“The incentives to settle in these sorts of cases are especially strong because nobody wants the secrets being discussed more than necessary,” he added. “Nobody wants the secrets being discussed more than necessary.”
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