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Court Denies Uber's Motion to Transfer IP Lawsuit to Brazil

Massachusetts Judge Rules Against Forum Selection Clause in Dispute Over In-Car Recording Technology

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Pavitra Shetty

Published on February 1, 2025, 14:53:20

recent legal development Suffolk County Superior Judge Debra SquiresLee

In a recent legal development, Suffolk County Superior Judge Debra A. Squires-Lee has denied Uber Technologies' attempt to relocate an intellectual property lawsuit to Brazil. The case, initiated by Zemcar, operating as Grip Mobility Co., centers on allegations that Uber misappropriated Grip's patented in-car driver and passenger recording technology during a pilot program in São Paulo. 

Background of the Dispute

Grip Mobility Co. developed the "Sentinel" application, designed to enhance safety through in-car recordings. The company partnered with Uber for a pilot program in São Paulo to test this technology. Grip alleges that Uber feigned interest in licensing or acquiring the technology, only to reverse engineer and unlawfully utilize it. 

Uber's Legal Maneuver and the Court's Decision

Uber sought to enforce a master service agreement's forum selection clause, which mandates that disputes be resolved in Brazilian courts. However, Judge Squires-Lee ruled that the clause did not compel the case's transfer to Brazil, allowing the lawsuit to proceed in Massachusetts. 

Implications for Uber and Grip Mobility

This ruling signifies a legal setback for Uber, compelling the company to address the intellectual property claims within the U.S. legal system. For Grip Mobility, the decision enables the pursuit of their case in Massachusetts, potentially influencing future tech collaborations and the enforcement of forum selection clauses in international agreements.

The case underscores the complexities of cross-border legal agreements and the protection of intellectual property rights in global partnerships.

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