U.S. News | Neural Magi Sues Facebook of Misappropriating Trade Secrets

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An artificial intelligence (AI) startup, Neural Magic has filed a lawsuit in the U.S. District Court for the District of Massachusetts against Facebook and its former technology director, Aleksandar Zlateski for trademark infringement.

Neural Magic alleges that Facebook hired its former technology director, Aleksandar Zlateski and having him share the startup’s trade secrets and then offering this technology as open-source code.

The plaintiff reportedly said that Zlateski shared with Facebook Neural Magic’s trade secret, a computer algorithm with great potentials to change the narrative of artificial intelligence.

Neural Magic reportedly said that Facebook announced in December, 2019 that it had published an open-source compiler. Investigations revealed that the open-source includes the same proprietary algorithms that form the heart of Neural Magic’s technology and IP.

Neural Magic reportedly said that the former technology director, Aleksandar Zlateski had access to all of Neural Magic’s trade secrets, confidential, proprietary information, and business plans for the future.

According to Neural Magic, Zlateski left the company after almost a year and a half to take up a position at Facebook and he promised not to develop a technology related to his work at Neural Magic.

Neural Magic reportedly said that Zlateski had breached the non-disclosure and non-competition agreement he signed with the company.

Neural Magic had reportedly sent letters to both Facebook and Zlateski to put down the offending publication pending investigation and further discussion but the defendants bluntly refused.

Neural Magic is seeking punitive damages and an injunction against both Zlateski and Facebook prohibiting any further use of Neural Magic’s trade secrets.

The case is pending.

Neural Magic, Inc. v. Facebook, Inc. et al

Judge:Denise J Casper
Court:Massachusetts District Court
Case #:1:20-cv-10444
Nature of Suit:Other Statutory Actions
Cause:Civil Action to Protect Trade Secrets
Case Filed:March 04, 2020

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About Nathaniel Adebayo 656 Articles
Nathaniel is a News Reporting Intern at Nigerian Law Intellectual Property Watch (NLIPW). He has a passion for writing, capacity building and social media marketing. He is a graduate of Federal University of Technology, Minna, where he graduated with BTECHAGRIC. He is a member of Soil Science Society of Nigeria (SSSN) and the National Union of Campus Journalist (NUCJ). Nathaniel has served as Editor-in-Chief for a number of magazines and as a contributor to various online repositories. Email: anathaniel@nlipw.com