Intrigue ensues in iRobot vs. Robot FX case

It looks like that iRobot vs. Robot FX lawsuit is turning out to be quite a bit different than the usual patent infringement case, with reports now turning up of key figures in the case making trips to dumpsters and U.S. Marshals seizing data destruction gear. As Xconomy reports, that former tidbit was part of an affidavit filed on August 20th, which stated that a man fitting the description of Jameel Ahed, founder of Robotic FX, was spotted putting a number of items in a dumpster. After the man left, the detectives trailing him checked out the scene, finding a box for a paper shredder, another box with "iRobot" written on it, and a trashed VHS tape labled "IS Robotics SWARM 2000" (IS Robotics being the original name of iRobot), among other items. Shortly after that incident, according to DefenseNews.com, US Marshalls seized some paper shredders at the homes and offices of two Robot FX employees, as well as some devices for erasing hard drives and destroying compact discs. Adding further intrigue to the case is the fact that Robot FX just last week won a major contract with the US military, which sent iRobot's stock down nearly 25%. For its part, Robot FX is denying any wrongdoing, and it's now attempting to get the case consolidated in Massachusetts, a move iRobot opposes.

Read - Xconomy, "Dumpster-Diving Detectives and Tales of Industrial Espionage"
Read - DefenseNews.com, " Data-Destruction Gear Seized in Robotmakers' Dispute"

[Thanks, Tom F]

[PhotoJoe @ Sep 20th 2007 11:50AM]

hmmmmmmm.. anyone think they should just have some robot on robot combat to decide who prevails here?

[PhotoJoe @ Sep 20th 2007 11:54AM]

We could even get some PPV out of this. I can see the marketing schemes already. "Hot robot on robot action!"

[pauly @ Sep 20th 2007 12:02PM]

Just send the robots to court. I wonder how a robot would hold up in prison?

[Fat Ballz @ Sep 20th 2007 12:03PM]

Battle Bots was cancelled a long time ago.

[Andrew Koyfman @ Sep 20th 2007 12:11PM]

There was one other development recently - the U.S. Gov't is weighing in on the issue, on the side of Robot FX. We posted a new story about it here: http://www.xconomy.com/2007/09/20/us-government-weighs-in-against-irobot-bid-for-injuntiion-against-rival-firm/

One more update will happen today when the judge rules on the injunction.

[Mile @ Sep 20th 2007 2:05PM]

Which branch of the gov't is sticking up for them? The ones that have a deal with them? Because that would be a big surprise. And by saying that I mean the exact opposite.

[Paragraph @ Sep 20th 2007 12:23PM]

Since when is having a shredder and devices to destroy data a crime?

sure, it could be used to destroy important data, but most people have these things, i have two shredders, one can handle discs, does that mean i'm shredding pirated DVDs? no it does not.

There really isn't much to be obtained from a shredder anyway, it doesn't have a memory or anything like that.

As for a device designed to bleach hard drives... well thats kinda incriminating there... i don't understand whats wrong with a t8... works just as good ;)

[Andy S. @ Sep 20th 2007 1:23PM]

The difference is that you're not currently in the middle of a lawsuit over your alleged acts of piracy (are you?). If you were, every piece of information that you destroy would be scrutinized as possible destruction of evidence. That's the issue here: Robot FX is in the middle of a court case.

It's like tossing a beer bottle out of your car window. On a normal day, that's littering. If you do it while a cop is pursuing you, however, it's more likely that you're ditching evidence.

[Chris @ Sep 20th 2007 2:05PM]

AndyS - At any given time, most large companies are in some sort of litigation. Just check out the Annual Report of just about any publicly traded company and you will see litigation in the notes to the financial statements.

Being in litigation does not mean business stops, and destruction of sensitive business materials is a necessary internal control in every corporation, especially when disposing of private information about the employees (printouts with SSNs, addresses, etc.) And, if they did win a contract with the federal govn't, as a poster above noted, and portions of their work is classified, then shredding and proper disposal is mandatory.

It is also normal for companies to closely examine the competition. It would not surprise me in the least if MS and Apple both had huge repositories of information on each other. In fact, the absence of this would be the real surprise.

[Mile @ Sep 20th 2007 2:07PM]

Let's not forget the boxes named iRobot and ISRobot.

But you're right. I'm sure they were just using the shredder to prevent identity theft of their personal CC receipts.

[Trent @ Sep 20th 2007 3:41PM]

Chris, had you bothered to read the linked story you would know that the Judge ordered Robot FX not to destroy ANYTHING, on top of that after the US Marshels searched homes of the co-founders on orders of the Judge (about 2 weeks after the order was issues) it was discovered that a laptop Hard Drive had been wiped clean very recently. On top of that discarded in the dumpster was a VHS tape that belonged to iRobot, and some circuit boards of unknown origin inside an iRobot box. This dumpster wasn't a company dumpster and was near the home of the founder, but not his official trash disposal dumpster. The founder of RobotFX was a former employee of iRobot who had signed confidentiality agreements, and signed a sworn affidavit when he left iRobot that he had returned everything to iRobot that was iRobot property or documents/trade secrets. The day after signing said document he logged into his still active email account from offsite and emailed proprietary documentation to his new RobotFX email account.

After what I read its obvious to me that this is a clear cut case of industrial espionage and in disregard of court order to the contrary, RobotFX and it's founders willingly destroyed evidence in the court case.

It's simple really, after being ordered not to destroy evidence, communications or anything else, the founders of RobotFX:

1. Bought a shredder.
2. Bought hard-drive erasing software.
3. Disposed of items that were labled as iRobot property in a private dumpster they didn't have legal right to use. This included destroying a video tape labeled as belonging to iRobot completely and disposing of the leftovers, disposed of circuit boards inside an iRobot box and erased a laptop harddrive.

The circumstantial evidence weighs in and says the founders are engaged in destruction of evidence and should be sanctioned by the court as such, including adverse instructions to the jury for destruction of evidence.

[JeffDM @ Sep 20th 2007 4:14PM]

Chris, I think the point is that destroying information relevant to existing open litigation or investigation is a big no-no. It's basically a consideration of whether you're trying to dispose of inconvenient or incriminating evidence relevant to the case at hand - which can mean a default judgment against you, meaning you lose the case.

[Ricksta @ Sep 20th 2007 1:00PM]

FX looks very guilty in all of this. Data destruction and destruction of items clearly linked with iRobot makes me think they have something to hide. It's pretty cut a dry when you work for a company to not share trade secrets, especially patents.

I think the deal went to FX because the government likes to support small companies. 2 companies with similar machines, one is a huge corporation, the other is not. There may have been price differences as well.

Either way this goes, hopefully the people who need the robots, our guys in combat, don't have to suffer delays, etc.

[staniel @ Sep 20th 2007 1:52PM]

Do you really need a "device" to destroy hard drives and CDs? Just break them.

[Kamokazi @ Sep 20th 2007 1:58PM]

"some devices for erasing hard drives and destroying compact discs"

Aren't magnets and microwaves common household items?

[Jerome @ Sep 20th 2007 7:20PM]

manget don't work

You need some EXTREME BIG magnet to destroy a harddrive. Even there it will not work.

The microware is the way to go with the CD and DVD.

For harddrive, well you take it appart and grind it until you have dust.
Even erasing it won't cut it, special compagny will be able to recover data out of them. They take appart the harddrive and take only the metal disk and analyse it.

[Mile @ Sep 20th 2007 2:03PM]

Time to buy iRobot stock again?

[bob scanlon @ Sep 21st 2007 10:20AM]

I would say iRobot would be good bet to win the lawsuit, price of stock down good time to pick it up