$13 Million Verdict Against Ford in Trade Secret Case

In a high-stakes intellectual property dispute, California-based InterMotive Inc. accused Ford Motor Co. of misappropriating trade secrets related to its Upfitter Interface Module, a device used to customize vehicles with features like light bars and GPS. InterMotive claimed Ford unlawfully shared a confidential sample of the module with a competing supplier, enabling the development of a rival product. A Michigan federal jury agreed, awarding $13.2 million in damages for trade secret theft and $350,000 for Lanham Act violations related to trademark infringement.

The Trial

The three-week trial in 2023 hinged on whether the programmable inputs of the Upfitter Interface Module constituted a trade secret. InterMotive argued the module’s features were disclosed to Ford under a confidentiality agreement that was later breached. Ford countered that the module’s features were well-known in the industry, claiming no misuse occurred. However, the jury sided with InterMotive, rejecting Ford’s evidence and assertions that the module's sale eliminated its confidentiality. U.S. District Judge Terrence G. Berg instructed jurors extensively on trade secret law, bolstering InterMotive’s case.

The Appeal and Ford’s Arguments

Unwilling to accept the verdict, Ford filed a motion for judgment as a matter of law or a new trial, asserting that InterMotive failed to demonstrate the trade secret misuse directly drove Ford’s profits. Ford also challenged the trade secret's legitimacy, claiming it was widely known and commercially available. Additionally, the automaker argued that the jury was improperly instructed on damages and should have been told to limit awards to the contract period. InterMotive refuted these points, stating, “The jury could have believed, and apparently did believe, all of the evidence showing that Ford stole the trade secret while it was still bound.”

Law Firms Involved

Ford is represented by Brooks Kushman PC and Bush Seyferth PLLC, both known for their expertise in intellectual property and commercial litigation. InterMotive’s legal counsel includes Howard & Howard Attorneys PLLC, a firm with deep experience in complex technology cases. Learn more about their work at Brooks Kushman PC and Howard & Howard Attorneys PLLC.

What’s Next?

Ford faces significant challenges in overturning the verdict. InterMotive maintains the jury's decision is supported by ample evidence and highlights the automaker’s breach of confidentiality agreements. Ford also risks potential reputational damage as it continues to argue against the validity of trade secrets central to the dispute. In addition to its bid to shift litigation costs, Ford is fighting to prevent InterMotive from recovering attorney fees and prejudgment interest, arguing its actions were not willful or malicious. Judge Berg’s prior rulings, including a permanent injunction against Ford using the Upfitter Interface Module name, suggest that InterMotive’s victory may have lasting legal implications.