Virgin Galactic Sued by Boeing Over Trade Secrets

Aerospace company Boeing has taken space tourism startup Virgin Galactic to court, alleging theft of trade secrets and failure to cough up $25 million for their collaboration on a new “mothership” to ferry a sightseeing vessel into space. The lawsuit, filed in a U.S. court, claims Virgin Galactic is unlawfully hoarding proprietary information obtained during their partnership with Boeing subsidiary Aurora Flight Sciences.

According to Boeing, Virgin Galactic is holding onto valuable trade secrets, including test data and mathematical equations, without contractual rights. The aerospace giant fears Virgin Galactic could exploit this information to develop a new mothership independently or with another supplier.

In response, Virgin Galactic vehemently denies the accusations. In a statement, the company said, “We believe this lawsuit is wrong on the facts and the law, and we will vigorously defend ourselves in the appropriate forum.”

Founded by billionaire Richard Branson in 2004, Virgin Galactic offers space tourism experiences aboard its rocket-powered spaceplane, Unity, launched from a “mothership” jet carrier at approximately 44,000 feet. Despite completing its first commercial flight last year, the company now finds itself entangled in legal battles with Boeing.

The dispute stems from a contract signed in 2022 between Virgin Galactic and Aurora to provide engineering services for the design of a new mothership. Aurora later determined that the project would require more time and money than initially anticipated. Allegedly, Virgin Galactic refused to compensate Aurora beyond the $25 million already invested, leading to a halt in work since May 2023.

The lawsuit, titled The Boeing Company and Aurora Flight Sciences Corp v. Virgin Galactic LLC, awaits further proceedings in the U.S. District Court for the Eastern District of Virginia. As the legal battle unfolds, the future of space tourism and the intricate dynamics between industry giants and emerging startups hang in the balance.