The U.S. Ninth Circuit Court of Appeals reinstated an $81 million (approximately 581 million yuan) compensation ruling against Boeing last Thursday. The lawsuit accused Boeing of stealing trade secrets from electric aircraft startup Zunum Aero.

Previously, a California district court judge had overturned the jury's decision and ruled that the information in question was not eligible for trade secret protection.

A Boeing spokesperson declined to comment on the appeals court's decision. Zunum's legal representative stated that the ruling “confirms what we've been saying all along—Zunum had a tremendous opportunity to transform air travel, but Boeing took that opportunity away.”

Headquartered in Washington State, Zunum was founded in 2013 with the goal of developing small electric commuter aircraft capable of flying up to 1,500 miles. Boeing's venture capital arm invested $5 million in the startup in 2017.

In its 2020 lawsuit, Zunum stated it planned to begin selling its aircraft in 2022 but halted development after Boeing allegedly blocked its funding channels. The complaint alleged that Boeing used Zunum's trade secrets to develop its hybrid commuter aircraft.

Last May, a federal jury ruled that Boeing must pay Zunum nearly $81.2 million in damages for trade secret theft and an additional $11.6 million for tortious interference, but reduced the total damages to $72 million based on the jury's determination that Zunum could have mitigated part of the losses.

U.S. District Judge James Robart subsequently set the final compensation amount at $81 million, but overturned the ruling in August last year, stating that Zunum had failed to sufficiently clarify its trade secrets or prove that their value stemmed from their confidentiality.

However, the Ninth Circuit Court of Appeals stated on Thursday that Zunum had provided “sufficient detail” for the jury to conclude that its secrets were legally protectable and “not generally known to the public, not easily accessible to others, and of value.”

The appeals court also ordered the case to be reassigned to a new judge, as Judge James Robart disclosed that his wife had purchased Boeing stock through a retirement savings account during the litigation.

The case is Zunum Aero Inc v. Boeing Co, U.S. Ninth Circuit Court of Appeals, Case No. 24-5212.