Joby Aviation Hit with $116.9 Million Trade Secret Verdict Over Air Data Probe Technology: What This Means for Businesses Sharing Proprietary Information

A federal jury in the U.S. District Court for the Middle District of Florida awarded aircraft component maker Aerosonic approximately $116.9 million after finding that electric air taxi developer Joby Aviation breached a mutual nondisclosure agreement and willfully misappropriated Aerosonic's trade secrets. The verdict, returned in early October 2026, included roughly $68.6 million for breach of the NDA, $29.9 million for trade secret misappropriation, and $18.3 million in exemplary damages. The jury also rejected all of Joby's counterclaims, including its assertion that Aerosonic had supplied defective air data probes.

The Dispute

Aerosonic manufactures air data probes, specialized sensors used in aircraft to measure speed, altitude, and other flight parameters. In 2021, Aerosonic and Joby Aviation signed a mutual nondisclosure agreement, and Aerosonic began supplying probes for Joby's flight-test aircraft. Under the NDA, Aerosonic shared proprietary engineering drawings, test procedures, 3D models, and wind-tunnel data with Joby.

In April 2022, shortly after receiving its first probe from Aerosonic, Joby asked to purchase Aerosonic's probe intellectual property outright. Aerosonic refused. Despite the refusal, Joby continued to seek technical information and business ties with Aerosonic. Aerosonic later alleged that Joby used the confidential materials, or reverse-engineered probes it had purchased, to develop its own competing air data system in an unusually short period. Aerosonic also pointed to a distinctive interface geometry on Joby's probe that it said matched a design found only in Aerosonic's confidential engineering materials.

Why This Case Matters

The verdict rested on two separate legal theories: breach of the nondisclosure agreement and trade secret misappropriation under federal and state law. The jury's finding that the misappropriation was willful and malicious is particularly significant because it opened the door to exemplary damages, which are designed to punish intentional wrongdoing and deter similar conduct. Joby maintains that it developed its air data system independently and has announced plans to appeal the verdict and pursue all available legal remedies.

This case also illustrates the risks associated with reverse engineering. While reverse engineering of lawfully obtained products is generally permissible under trade secret law, the analysis changes when the parties have signed an NDA that restricts how shared information can be used. When confidential materials are exchanged under a nondisclosure agreement, the recipient's obligations extend beyond what trade secret law alone would require. The NDA creates a contractual barrier that can make otherwise lawful reverse engineering a breach of contract.

Key Takeaway for Business Owners

For businesses that share proprietary technology, designs, or data with partners, suppliers, or potential acquirers, this case reinforces the importance of well-drafted nondisclosure agreements and the need to document exactly what information is shared and how it may be used. The $116.9 million verdict shows that the financial exposure from mishandling confidential information can far exceed the value of any single business transaction. Companies should ensure that their NDAs clearly define what constitutes protected information, restrict reverse engineering of shared materials, and establish meaningful remedies for breach. On the other side, businesses that receive proprietary information under an NDA should maintain strict internal protocols to ensure that confidential materials are not used beyond the scope of the agreement.

Whether you need to protect proprietary technology before sharing it with a business partner or want to review the terms of a nondisclosure agreement before signing, seeking legal guidance early can help you avoid costly disputes. Schedule a free consultation with Diorio IP Law Group to discuss how to safeguard your trade secrets and business relationships.