The U.S. Court of Appeals for the Federal Circuit on Friday revived part of a multimillion-dollar jury verdict in favor of Versata Software in its dispute with Ford, restoring $82.2 million of an original $104.6 million award.
In 2022, a Detroit jury found that Ford had violated its licensing contract with Versata and had misappropriated trade secrets. The jury awarded Versata $82.2 million for breach of contract and an additional $22.4 million for the trade-secret claim. In 2023, U.S. District Judge Matthew Leitman overturned that verdict, concluding that Versata had not provided sufficient evidence to enable jurors to calculate damages with the necessary accuracy.
On Friday the Federal Circuit disagreed with Judge Leitman on the breach-of-contract damages, finding the jury's calculation of the $82.2 million award demonstrated "reasonable certainty." The appeals court reinstated that portion of the verdict, while remanding the case for a new trial limited to determining the proper sum attributable to the trade-secret misappropriation claim.
Versata, which is based in Austin, Texas, told the court that it licensed its automotive software to Ford from 1998 through 2015. The company said its software facilitated collaboration among Ford engineers and marketing staff and enabled vehicle design work with what it described as seamless, real-time updates on a worldwide basis. Versata also alleged that Ford began copying the software when it became reluctant to continue paying millions of dollars in annual licensing fees.
Spokespeople for both Ford and Versata did not immediately respond to requests for comment following Friday's ruling.
Context and next steps
The appeals court decision preserves the jury's finding that Ford breached its licensing contract and restores the substantial damages tied to that finding. The requirement for a new trial on trade-secret damages means the litigation will continue as the parties and the court determine an appropriate measure for that portion of the award.
The case will return to the trial court to proceed with the limited retrial ordered by the Federal Circuit.