Teradyne Robotics Sues Chinese Rival Elite Robots Over Alleged Software Theft
The battle for the industrial robot market between Western companies and Chinese enterprises is no longer being fought solely in the market itself, but now also in court: Teradyne Robotics A/S has initiated legal action against the German subsidiary of Chinese robotics company Elite Robots.
The Danish company, a subsidiary of Teradyne, Inc. (NASDAQ: TER), accuses its competitor of unlawfully copying software from Universal Robots. Specifically, the lawsuit, which has been filed with a German court, concerns a copyright infringement regarding Universal Robots’ PolyScope 5 software.
Teradyne is a quiet winner of the current AI wave, as it also supplies test systems for chips. The stock has gained 170% over the last 12 months, and the company is currently valued at a hefty 45 billion dollars.
Elite Robots is no small player either: it is a Chinese manufacturer of collaborative robots (cobots) founded in 2016. The company now ranks among the top 3 cobot brands in China. Elite Robots has so far been unable or unwilling to provide a statement on the lawsuit.
Allegation of Software Piracy
Teradyne Robotics claims to have evidence of copyright infringement by Elite Robots. The company initially sent a cease-and-desist letter to Elite Robots’ German subsidiary before taking the case to a German court. In addition to the legal dispute, Teradyne Robotics has, according to its own statements, also informed European security authorities about security concerns regarding Elite Robots’ robots.
Jean-Pierre Hathout, President of the Teradyne Robotics Group, emphasizes the importance of protecting intellectual property for European industry:
“This decisive step underscores our commitment to protecting intellectual property and ensuring that automation customers have access to the safe, high-quality solutions they deserve.”
And further: “Both automation and innovation are crucial for Europe’s future. We will not allow products from companies that unlawfully copy protected technologies to jeopardize the customer experience, the intellectual property of our technology sector, or Europe’s industrial future.”
Call for Industry-Wide Action
The company is calling on policymakers and industry leaders to consistently take action against copyright infringement. Hathout explained:
“Teradyne Robotics is deliberately choosing to take a stand against competitors who copy proprietary hardware or software designs to compete on lower prices. We invite other leaders to join us in defending the integrity of our industry and the strength of our economy.”
Significance for the European Robotics Market
Teradyne Robotics, which includes the brands Universal Robots and Mobile Industrial Robots (MiR), has, according to its own statements, significantly shaped standards for robot safety. The company specializes in collaborative robotics, which, after safety testing, can be deployed directly alongside humans in manufacturing and logistics.
“We believe we have strong evidence that goes beyond mere visual similarities. We know our software, and at a technical level, their software exhibits striking similarities,” says David Brandt, VP R&D & CTO of Universal Robots.
According to a study by Universal Robots, 48 percent of European manufacturers believe that robotics will be the most transformative technology by 2030. 68 percent cite productivity as the most important driver of automation, while 84 percent report a positive response from employees to robotic automation.
