Decision of the Court of Appeals in the lawsuit against XP Power

The Ninth Circuit Court of Appeals in San Francisco ( CA ) has issued a decision in Comet Technologies USA, Inc., et al. v. XP Power, LLC, whereby XP Power appealed the jury's finding that it misappropriated Comet's trade secrets to develop its next generation of RF power products. The decision relates to the U.S. District Court for the Northern District of California trade secret lawsuit, in which the jury ruled in favor of Comet in 2022 granting a preliminary injunction prohibiting XP Power from developing, marketing, or selling products based on Comet's unlawfully misappropriated trade secrets and awarding damages. 

The Court of Appeals decision that a new trial is necessary was based on an issue regarding the burden of proof that had been presented to the jury by the district court. The decision did not call into question either the validity of Comet’s evidence or the merits of its claims.

Although Comet is disappointed with the outcome of the Court's decision, Comet notes that the Court did not cast doubt on the importance or validity of Comet's trade secrets or on the seriousness of XP Power's misappropriation. Comet is also pleased that the Court rejected XP Power's arguments that it was not allowed to introduce certain evidence at trial.

The remand is not expected to have a material impact on Comet’s operations, financial position, or commitment to its customers and partners. Comet will continue to operate in the ordinary course of business while the litigation proceeds.

-end-