Wisk and Archer Resolve Legal Clash, Embark on Collaborative Journey in Electric Aircraft Sector
Global, August 2023: In an unexpected twist, electric aircraft manufacturers Wisk and Archer Aviation have chosen collaboration over conflict, putting an end to their prolonged legal battle. The fierce rivals, previously ensnared in a bitter two-year trade secret lawsuit, have opted for cooperation. Moreover, Archer has committed to integrating Wisk’s autonomy technology into an upcoming autonomous version of its Midnight aircraft as part of the settlement.
Archer recently announced a substantial infusion of $215 million in fresh funding, with support from major backers such as Boeing, Stellantis, United Airlines, Ark Investment Management LLC, and others. This capital injection is intended to expedite Archer’s journey to commercialization, with Boeing’s share of the investment earmarked to bolster the partnership between Wisk and Archer in autonomy technology integration.
Boeing’s longstanding involvement with Wisk stretches back several years, characterized by significant investments amounting to hundreds of millions of dollars. Wisk, once a joint venture between Boeing and Kitty Hawk, transitioned into a wholly-owned Boeing subsidiary earlier this year.
Key facets of the dispute resolution include:
Collaboration: The two entities will set aside legal grievances and collaborate on shared objectives within the electric aviation realm.
Exclusive Autonomy Provider: Wisk will emerge as Archer’s exclusive supplier of autonomy technology for the autonomous iteration of Archer’s Midnight aircraft. This strategic move underscores the companies’ determination to combine their prowess and assets to drive advancements in this pioneering domain.
Stock Options: Archer has granted Wisk the option to acquire up to 13,176,636 shares of common stock at a nominal price of $0.01 per share.
The settlement brings closure to an extended courtroom feud initiated when Wisk accused Archer of illicitly procuring confidential data and intellectual property, including over fifty trade secrets allegedly misappropriated by a former Wisk employee subsequently employed by Archer.
Despite multiple rounds of mediation, the dispute appeared destined for a trial scheduled on September 12, 2023. However, a last-minute settlement averted the trial and marked the commencement of a new chapter in the relationship between these two entities.
Archer’s strides in electric aviation have been impressive, highlighted by the recent certification of its electric aircraft, Midnight, for flight test operations by the U.S. Federal Aviation Administration (FAA). This pivotal achievement propels Archer closer to achieving complete certification for commercial service.
Noteworthy milestones achieved by Archer this year encompass the appointment of former FAA administrator Billy Nolen as Chief Safety Officer and a lucrative deal with the U.S. Air Force for the procurement of up to six electric aircraft, valued at a substantial sum of up to $142 million.
