The rise in trade secrets litigation in the electric vehicle (“EV”) sector continues with Tesla filing another lawsuit: this time against its own equipment supplier. On June 14, 2024, Tesla filed a complaint in the Northern District of California against Matthews International Corp. for trade secret misappropriation, along with breach of contract and unfair business practices. The electric vehicle giant alleges that Matthews exploited Tesla’s proprietary dry electrode battery information by incorporating that confidential information into Matthews’ own patent filings and distributing that information to Tesla’s competitors.

Tesla’s complaint highlights the importance of its dry electrode battery development, describing it as “the very heart of Tesla’s business.” In fact, Tesla has manufactured over 50 million battery cells using this proprietary technology, as reported in the complaint.

Tesla and Matthews began their relationship in 2019 when Matthews began supplying equipment that Tesla used in its dry electrode battery manufacturing process. During the course of their relationship, Tesla purportedly gave Matthews access to confidential information regarding that manufacturing process and Matthews “agreed, in writing, that it would hold those secrets in the strictest confidence.” But, according to the complaint, Matthews used that information to pursue its own patent applications, resulting in publication of Tesla’s trade secrets. Additionally, Tesla alleges Matthews sold dry electrode battery equipment—which included proprietary information—to Tesla’s competitors.

Tesla is seeking a preliminary and permanent injunction to prevent Matthews from continuing to use its trade secrets and for a transfer in ownership of all of Matthews’ patent applications pertaining to Tesla’s trade secrets. Tesla also seeks monetary damages in accordance with its claims. 

In a press release issued after the complaint was filed, Matthews denied any wrongdoing and noted that Tesla failed to identify with particularity the trade secrets it alleges Matthews misappropriated.

Tesla’s lawsuit underscores the critical importance of safeguarding intellectual property in the fiercely competitive automotive industry. It demonstrates EV companies’ willingness to legally enforce their trade secrets in this competitive field. Companies like Tesla continue to address intellectual property violations relating to EV manufacturing and development technology. For companies confronting misappropriation of their trade secrets or defending against such claims in the EV or technology sectors, Proskauer’s extensive legal and technical expertise, combined with a multidisciplinary approach, can enhance the likelihood of achieving favorable and effective resolutions to complex trade secret intellectual property disputes.

Posted in EV Trade Secrets Litigation Series, Trade Secrets
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Photo of Baldassare Vinti Baldassare Vinti

Baldassare (“Baldo”) Vinti is the head of Proskauer’s Intellectual Property Litigation Group.

Baldo is a first-chair trial lawyer known for navigating complex, bet-the-company intellectual property disputes across industry verticals and next-generation technologies. With over 25 years of experience, Baldo represents leading global companies…

Baldassare (“Baldo”) Vinti is the head of Proskauer’s Intellectual Property Litigation Group.

Baldo is a first-chair trial lawyer known for navigating complex, bet-the-company intellectual property disputes across industry verticals and next-generation technologies. With over 25 years of experience, Baldo represents leading global companies and universities in patent, trade secret, false advertising, consumer class actions and technology-related breach of contract litigation in federal and state courts as well as before the International Trade Commission.

Baldo is particularly sought after for his courtroom skill and strategic depth, having led trials, arbitrations and appeals in high-stakes disputes involving technologies ranging from pharmaceuticals and medical devices to encryption, digital media, diagnostics, mobile platforms and software. Baldo has represented global corporations, including Arkema S.A., British Telecommunications PLC, Church & Dwight Co., Inc., Henry Schein, Inc., Maidenform Brands Inc., Mitsubishi Electric Corp., Ossur North America Inc., Panasonic Corp., Sony Corp., Welch Foods, Inc. and Zenith Electronics LLC.

With a background in pharmacy, Baldo brings deep domain expertise to pharmaceutical litigation. He has a proven record of driving successful outcomes in complex pharmaceutical milestone payment, royalty and licensing disputes—often stemming from collaboration agreements, co-development deals, and M&A transactions—where the financial and strategic stakes run high.

In addition to representing corporate clients, Baldo works closely with university innovation and technology transfer offices to maximize the financial return of research investments. He develops tailored IP asset optimization strategies and aggressively enforces intellectual property rights to protect and monetize core innovations—whether through high-value licensing agreements, shaping and advancing spin-out company development, or successful litigation.

Baldo also provides strategic counsel on IP due diligence, complex licensing, IP structuring, patentability and freedom-to-operate analyses, and infringement and validity opinions. He advises boards and executive teams on aligning IP strategy with business objectives, mitigating risk and maximizing the value of innovation assets.

A frequent author and commentator on intellectual property topics, Baldo has been quoted in the National Law Journal, Bloomberg BNA, Law360, Westlaw Journal and Inside Counsel magazine. He is also a regular contributor to articles published in Medical Product Outsourcing magazine that deal with the medical device industry.

Baldo served as a judicial intern for Hon. John E. Sprizzo of the United States District Court for the Southern District of New York and for Hon. Charles A. LaTorella of the New York Supreme Court.

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Photo of Elizabeth Shrieves Elizabeth Shrieves

Elizabeth (Beth) Shrieves is an associate in the Litigation Department and a member of the Intellectual Property and Patent Law groups. Beth has experience litigating in numerous federal district courts across the United States, as well as before the Federal Circuit, U.S. Patent…

Elizabeth (Beth) Shrieves is an associate in the Litigation Department and a member of the Intellectual Property and Patent Law groups. Beth has experience litigating in numerous federal district courts across the United States, as well as before the Federal Circuit, U.S. Patent and Trademark Office, and International Trade Commission. Beth’s experience covers a wide variety of products and technology involving software and applications, medical devices and technology, electrical hardware, telecommunications, supercapacitors, automotive engines, weapon systems, and consumer products. She has counseled clients throughout all stages of litigation, including both plaintiff and defense work, from pre-suit investigation, initial pleadings, discovery, trial, and through appeal.

Beth graduated from George Mason University School of Law where she earned her J.D., Magna Cum Laude. Prior to earning her law degree, she received a bachelor’s degree from Wake Forest University where she also graduated Magna Cum Laude. Beth also previously worked as a paralegal where she gained a deeper understanding of the nuances of commercial litigation.

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