IP Law Daily, COPYRIGHT NEWS: Autel accused of hacking Ford’s diagnostic software to copy proprietary data files, (Sep 30, 2014)

By Cheryl Beise, J.D.

The Ford Motor Co. and its Ford Global Technologies subsidiary have filed suit against New York-based vehicle diagnostic equipment provider Autel US and its Chinese subsidiary, Autel Intelligent Technology Co., Ltd. (together, “Autel”), accusing them of hacking into Ford’s Integrated Diagnostic System (the “IDS System”) software and copying Ford’s proprietary diagnostic information. The complaint in Ford Motor Co. v. Autel US Inc. was filed September 29 in the federal district court in Detroit.

The complaint explains that Ford’s IDS system includes a software program (the “IDS Software”) that assists with diagnosing and facilitating the service and repair of a wide variety of issues in Ford vehicles. The IDS Software includes various compilations of data, such as databases, tables, and the like to aid in the operation of the IDS System. While certain compilations of data within the IDS System are made generally available pursuant to federal law, other compilations of data within the IDS system constitute trade secrets used by Ford and its network of authorized dealers and repair facilities. Ford uses a variety of techniques to protect trade secret information included in the IDS System, including the FFData file, including use of encryption technology and obfuscation. Ford has obtained a copyright registration for data in its FFData.

Ford alleges that Autel created a program called PARSEALL.EXE, to obtain unauthorized access to Ford’s proprietary “FFData file” compilations of data within Ford’s IDS system. Autel allegedly extracted the FFData file and copied it onto various diagnostic products sold by Autel, including Autel’s DS708 tool. Ford also claims that Autel infringed the famous FORD OVAL® trademark by using it on Autel products without authorization or a license from Ford.

The complaint contains causes of action for copyright infringement, circumvention of a copyright protection system, trademark infringement and false designation of origin under the Lanham Act, misappropriation of trade secrets and confidential business information, common law unjust enrichment, and unfair and deceptive trade practices in violation of Michigan statutory and common law.

Ford is requesting damages, statutory damages, treble damages, injunctive relief, reasonable attorneys’ fees and costs, and other appropriate relief. Ford claims that it has sustained and will continue to sustain, substantial injury, loss, and damages in an amount exceeding $1,000,000.

The case is Civil Action No. 2:14cv13760.

Attorneys: Gregory D. Phillips (Phillips Ryther & Winchester) for Ford Motor Co. and Ford Global Technologies, LLC

Companies: Ford Motor Co.; Ford Global Technologies, LLC; Autel US Inc.; Autel Intelligent Technology Co., Ltd.

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