One Ohio-based startup contends in a new lawsuit that Amazon gave it a “tuff” break.
TuffAir, a regional air freight company, filed the complaint in the Northern District of Ohio on July 1. In its complaint, it alleges that Amazon “expressed interest in a potential partnership or acquisition, requested detailed disclosures from TuffAir, and engaged in multiple rounds of communication with key executives,” then walked away from discussions and built its own version of the air logistics services model it had spoken to TuffAir about.
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“After securing access to TuffAir’s materials, Amazon abruptly ceased communications, only to unveil a remarkably similar regional air cargo model within months, based on the same technical, operational and strategic elements TuffAir had disclosed,” the company alleged in the complaint.
Effectively, TuffAir contends that Amazon’s lacked pure intent in contacting TuffAir or requesting further information about its proprietary services. Instead, the startup alleged, “Amazon’s true intent was to obtain confidential business intelligence from TuffAir without paying for it and to use it in its own competing initiative.”
According to the complaint, the e-tail giant did not share any prior plans for such an air cargo network during talks, which leads TuffAir to believe the company used its trade secrets to develop its own version of a similar model. Such information purportedly included “regulatory pathways, aircraft routing strategies, facility optimization models and proprietary operational forecasts.”
TuffAir maintains that its strategy has been unique and is designed to facilitate cheaper, faster regional air transit for freight.
“TuffAir spent years developing a confidential business plan and technical models for a scalable regional air cargo system leveraging Ohio’s airspace corridors, infrastructure, and regulatory partnerships,” counsel for TuffAir wrote in the complaint. “TuffAir’s strategy was novel, integrating small-aircraft logistics, FAA exemptions, Ohio-based test zones and proprietary software and flight routing technology.”
Despite its assertion that it has “spent years” on its business, TuffAir’s site states that it plans to launch in the fall, “with high performance aircraft, lean operations and a scalable model to connect overlooked freight corridors across the Midwest.” The site also places an onus on ensuring veterans can receive medical care via ground and air transit. “TuffAir isn’t just a cargo startup, it’s a movement for impact, logistics and equity,” its site states.
Nonetheless, TuffAir alleged that Amazon’s actions have led to “lasting harm to TuffAir’s market opportunity, investor confidence and proprietary lead.” It further noted that Amazon’s alleged “copycat operation” caused it “substantial economic damage,” though it did not disclose a direct amount it believed to have lost because of the e-tail player’s alleged actions.
TuffAir’s complaint sees Amazon facing charges for misappropriation of trade secrets, breach of implied contract, unjust enrichment, fraudulent inducement and more. The startup seeks an injunction preventing Amazon from “using or disclosing any of TuffAir’s confidential, proprietary or trade secret information and requiring the return or destruction of all such materials,” as well as a declaratory judgement stating that Amazon infringed on its rights and monetary damages in an amount to be determined going forward.
Amazon did not immediately return Sourcing Journal’s request for comment on the complaint from TuffAir.
