Ordered To Pay $43.1 Million To SolidFX

Jeppesen has been ordered to pay $43.1 million by a federal jury for breaching its contract with SolidFX of Foxborough, MA. The jury found that the Boeing subsidiary appropriated the smaller company's idea for an app that allowed users to access Jepp's terminal charts on Apple iPad devices.

The Denver Post reports that the companies had entered into an agreement under which SolidFX would develop an app for an "e-book" reader and for Jeppesen to license its charts for the app. The first app developed by SolidFX operated on the iRex reader, which has since gone out of production. But after the app was developed, Jeppesen would not provide the chart data for use on any other device, including the iOS tablets.

Jeppesen then developed its own iPad app, which is currently being used by some major airlines as Electronic Flight Bags.

The jury concluded that Jeppesen did not honor its part of the agreement. Jeppesen had argued that, since the iPad is not an e-book reader, the agreement was not germane. SolidFX said that they had amended the agreement to include tablets like the iPad, and the jury agreed.

SolidFX filed the lawsuit in 2011. It had sought $78.6 million in damages. The jury determined that the actual losses were $42.9 million, and $173,000 in costs to defend itself against an allegation of fraud brought by Jeppesen.

Jeppesen plans to appeal the verdict.

FMI: www.uscourts.gov/FederalCourts/UnderstandingtheFederalCourts/DistrictCourts.aspx