Meta Platforms Inc (Technology company) recently lost an attempt to dismiss a complaint filed in federal court in Boston alleging that it stole sensitive data from artificial intelligence firm Neural Magic Inc. According to the complaint, Meta (formerly Facebook) stole Neural Magic’s trade secrets for deep learning technology and utilized them to create its own AI systems.

U.S. District Judge Denise Casper has ruled that Meta must face trial over allegations that it utilized Neural Magic’s “breakthrough” methods, which enable AI systems to process information at a faster pace. The court also received expert testimony that indicates Meta could be liable to pay Neural Magic up to $766 million in royalties.

This decision, however, was considered necessary since it means that there is sufficient evidence to support Neural Magic’s charges of misappropriating trade secrets. It may result in a hefty financial fine for Meta if it is held responsible.

The case highlights the need to protect trade secrets and intellectual property in the fiercely competitive and rapidly evolving field of Intelligence and technology.

Commercial businesses must be cautious in their efforts to preserve proprietary technology and take steps to ensure that they do not infringe on the intellectual property rights of others.

Neural Magic Sued Meta (Formerly Facebook) In 2020

It is worth recalling that Neural Magic sued Meta in 2020, stating that the firm stole methods that allow smaller computers to do difficult mathematical computations more rapidly, allowing research experts to utilize bigger data sets.

According to the complaint, Meta obtained secret knowledge about Neural Magic’s deep learning technology and utilized it to create its artificial intelligence (AI) systems. Neural Magic alleges that Meta stole its trade secrets and committed computer fraud and abuse.

It’s also worth noting that Neural Magic’s complaint claims that Meta hired one of its computer scientists, Aleksandar Zlateski, and that Zlateski gave Meta the algorithms that comprise the “heart” of Neural Magic’s technology.

The complaint claims Zlateski knew of the business’s trade secrets and intellectual property and had signed a confidentiality agreement with Neural Magic. Neural Magic asserts that Zlateski broke the terms of his contract when he divulged private information to Meta, which Meta then allegedly utilized to create its own AI systems.

Last year, Meta attempted to have the lawsuit dismissed by arguing that Zlateski did not acquire the information unlawfully and that Neural Magic had not identified any secrets eligible for patent protection. However, on Monday, the court allowed Neural Magic’s lawsuit to proceed for all 41 of the alleged stolen secrets, with the exception of one.


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