"Yuan" company poaches employees for "plagiarism" applications? Twitter Warning: Possible Litigation of Competitor Zuckerberg | Musk | Twitter | Meta

Release time:Apr 14, 2024 02:29 AM

After the release of the new social platform Threads by "Yuan" company on Wednesday, 30 million users have registered within less than 24 hours. Just as "Yuan" company was celebrating, it received a lawyer's letter from its competitor Twitter. Whether the two tech giants will create a "legal battlefield" outside of the business war has attracted external attention.

In the lawyer's letter, Twitter accused "Yuan" company of poaching its former employees and developing "fake application" Threads by stealing intellectual property rights. Twitter threatens to sue "Yuan" company for this. American media believe that this may be the most obvious sign that Twitter sees "yuan" companies as a competitive threat.

Illegal theft?

A few hours after the launch of the new Twitter application Threads by Meta, a lawyer for Twitter, Alex Spiro, wrote to the CEO of Meta, Zuckerberg, accusing Meta of hiring former Twitter employees and "systematically and deliberately stealing Twitter's business secrets and other intellectual property.".

Spiro stated in the letter that "Yuan" company has poached dozens of former Twitter employees in the past year, some of whom "have and will continue to obtain Twitter's trade secrets and other highly confidential information", and many have "improperly" retained Twitter's files or electronic devices.

The letter stated that, based on understanding the above situation, "Yuan" company intentionally assigned these employees to develop the application Threads that plagiarized Twitter within a few months. The specific intention of these employees is to use Twitter's trade secrets and other intellectual property to accelerate the development of competitive applications. This violates state and federal laws, as well as the ongoing obligations of these employees to Twitter.

Spiro said Twitter plans to strictly enforce intellectual property protection and demands that "Yuan" companies take immediate measures to stop using any trade secrets or other highly confidential information of Twitter. Spiro stated that this letter is a "formal notice" to "Yuan" company, requiring it to retain all relevant documents in response to possible legal action.

Regarding the content of the lawyer's letter, Andy Stone, spokesperson for "Yuan" company, responded in a post on Threads that no one in the Threads engineering team is a former employee of Twitter.

A former senior Twitter employee told Reuters that he was unaware of any former employees working on Threads and that no senior personnel had entered the "Yuan" company.

Meanwhile, Twitter owner Musk responded in a tweet citing this message, "Competition is okay, cheating is not." Twitter CEO Linda Yakarino wrote on Twitter, "We are often imitated, but the Twitter community can never replicate."

"Deceleration" strategy?

As of Thursday afternoon local time in the United States, Threads has become the top social app for instant download on the Apple Store. Compared to ChatGPT, which took 5 days to reach 1 million users, Threads had 30 million registered users in less than 24 hours.

CNN believes that Twitter's threat to sue "Yuan" company may be the most obvious sign that it sees the other party as a competitive threat. The Daily Mail of the UK said that Zuckerberg and Musk jokingly said they wanted to "book a fight in a cage", but now it seems that this fight may occur in court after the release of Threads.

At present, it is unclear whether Twitter has conclusive evidence in this regard. Intellectual property law experts, including Stanford University law professor Mark Lemley, have stated that in order to file a lawsuit against "Yuan" company for stealing trade secrets, Twitter needs to provide more information than stated in a lawyer's letter.

"Merely hiring former Twitter employees and creating a Twitter like application by 'Yuan' company are unlikely to support allegations of stealing trade secrets," said Lemley.

New York University professor Jenny Fromer said that companies accusing companies of stealing trade secrets must demonstrate that they have made reasonable efforts to protect corporate secrets. Cases typically revolve around security systems that are bypassed in some way.

A rough search conducted by The Guardian on LinkedIn found that several employees hired by "Yuan" company last year had worked on Twitter. However, it is quite common for technology employees to switch jobs from one company to another, especially if they have experience working on social media platforms.

The Guardian also wrote that in the technology industry, the threat of lawsuits for stealing trade secrets is not without precedent or consequences. In 2018, Waymo, Google's autonomous vehicle company, sued Uber for stealing trade secrets. Previously, a Waymo executive left the company to join Uber and develop autonomous driving technology. Google and Uber ultimately reached a settlement of $245 million. Anthony Lewandowski, an employee involved in the case, was charged with stealing trade secrets and sentenced to 18 months in federal prison, but was pardoned by former US President Trump and exempted from serving the sentence.

The US technology website "Edge" stated that considering that Musk fired many people after acquiring Twitter, it is not surprising that they were poached by competitors. And "Yuan" company seems less concerned about legal disputes, as Twitter has threatened to take legal action more than once - in May this year, Twitter accused Microsoft of "seemingly using the Twitter API for unauthorized purposes and purposes.".

Karl Tobias, a law professor at the University of Richmond, said that legal threats may not necessarily lead to litigation, but may be part of a "deceleration" strategy for "meta" companies.

"Sometimes, lawyers may threaten but not take action. Or they see how far they can go," Tobias told CNN. "Bundling 'yuan' companies with litigation can make their business complex and potentially have some value."

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