Aircraft Cabin Management

Gogo loses SmartSky legal action

Gogo headquarters
photo_camera Gogo headquarters

Satcoms provider Gogo Aviation must pay the administrators of former rival SmartSky $22.7m for infringing 5G technology patents, the US district court in Delaware has ruled.

SmartSky abruptly ceased trading in August 2024. However, this lawsuit had been brought to the courts back in February 2022 and was pursued by the receivers of the company. The case hinged on whether Gogo had copied patents relating to the way in which signals on the 2.4ghz spectrum were received.

READ: Gogo slams SmartSky’s antitrust filing

The legal team acting for SmartSky appeared pleased with the decision. “It is a big win for SmartSky and the patent system, demonstrating how patents can help protect the rights of smaller inventors, even in markets dominated by large competitors, which benefits everyone and helps to drive innovation,” said Rodger Smith, an attorney at law firm Morris Nichols, who argued the case for SmartSky.

In addition to the $22.7 million reasonable royalty for past damages, SmartSky has said that it intends to seek enhanced damages based on the jury’s willfulness finding, as well as a running royalty for existing patents that it believes to be currently infringed.

In a statement, Gogo has said that it will appeal. “We are disappointed with today’s verdict and respectfully disagree with the outcome. From the outset, we have maintained that Gogo’s independently developed 5G technology does not infringe SmartSky’s asserted patents, and their claims of patent protection are invalid”.

“We believe that the evidence supports our conclusion and that this litigation is an attempt to stifle legitimate competition and innovation in the aviation connectivity industry. We have strong grounds for appeal on both liability and damages, and we will vigorously pursue all available legal remedies, including post-trial motions and appeals”.

The company added that the action will have ‘no impact’ on the pending launch and roll-out of its own 5G service.

In a separate action relating to ‘predatory pricing’, ‘misleading advertising’, and ‘exclusive dealing agreements’, SmartSky is pursuing Gogo for damages up to $1bn, which SmartSky has described as seeking ‘justice for unfair business practices’ and Gogo describes as a ‘highly inaccurate representation of Gogo’s behaviour’ and a  ‘last-ditch effort by SmartSky’s creditors to recover some money on what amounts to a bad investment.’

This story was updated after publication to include comment from SmartSky’s legal team. 

 

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