$16M Jury Award in Rogerson-Bell Helicopter Aviation Trade Secrets Case

Rogerson Aircraft Corp. v. Bell Helicopter Textron Inc.

Case Background

On December 12, 2017, Plaintiff Rogerson Aircraft Corp. filed a Trade Secret lawsuit in the Texas District Court, Tarrant County (Case number: 348-296827-17). Judge Megan Fahey presided over the case.

Cause

Rogerson Aircraft Corporation has established itself as a pioneering force in helicopter avionics systems since 1978, specializing in integrated cockpit displays and advanced aviation technology. The company invested millions of dollars over two decades in developing state-of-the-art digital glass cockpit technology specifically for helicopter applications. In the early 1990s, Rogerson initiated a transformative partnership with Bell Helicopter, introducing them to the industry’s first flat-panel Electronic Flight Information System (EFIS). This revolutionary helicopter avionics system marked the beginning of their 25-year collaboration. The partnership yielded significant technological breakthroughs in integrated cockpit displays. Rogerson developed the first certified all-digital cockpit for the Bell 430 helicopter in 1994, creating the foundational architecture that became standard in Bell’s digital helicopter cockpits. The company further advanced its proprietary avionics designs by introducing enhanced Integrated Instrument Display Systems (IIDS) for the Bell 427 helicopter in 1996, incorporating sophisticated maintenance and monitoring features. Between 1999 and 2013, Rogerson continued innovating helicopter avionics systems. The company developed larger-format displays for Bell 412 helicopters with advanced capabilities, including radar integration, FLIR video, and comprehensive diagnostic systems. Their collaboration peaked with the joint development of glass cockpit Integrated Avionics Systems (IAS) for the Bell 429 and 412EPI helicopters. This achievement represented the pinnacle of modern aviation technology integration.

Injuries

Bell’s actions caused substantial harm to Rogerson’s market position in the aviation industry when it allegedly disclosed confidential helicopter avionics technology to a new supplier. The unauthorized sharing of proprietary avionics designs and system specifications violated multiple confidentiality agreements and joint ownership provisions. This breach compromised decades of research and development in integrated cockpit displays and sophisticated flight systems. The disclosure of trade secrets enabled a competitor to bypass years of complex aviation technology development, particularly in helicopter-specific avionics systems. Bell’s actions undermined the extensive certification processes and proprietary knowledge that Rogerson had accumulated in developing certified digital cockpit solutions. The unauthorized sharing of confidential system requirements and integrated avionics technology severely damaged Rogerson’s competitive advantage in the aerospace industry.

Damages

The financial impact of Bell’s actions penetrated deeply into Rogerson’s business model. The company suffered immediate losses in projected revenue from future sales of helicopter avionics systems. The unauthorized disclosure of proprietary aviation technology significantly diminished the value of Rogerson’s intellectual property portfolio, particularly its advanced digital glass cockpit designs. The damage extended beyond direct financial losses. Rogerson’s market position in the helicopter avionics sector weakened as its proprietary technology became compromised. The company’s reputation as a leading innovator in integrated cockpit displays suffered, potentially affecting future business relationships in the aerospace industry. The long-term impact included lost opportunities for technology licensing and reduced bargaining power in future aviation contracts.

Key Arguments and Proceedings

Legal representation

• Plaintiff(s): Rogerson Aircraft Corp.
  • Counsel for Plaintiff: Karl Stern in Dallas | Patrick Schmidt| Joseph Cleveland

• Defendant(s):Bell Helicopter Textron Inc.
  • Counsel for Defendants: Lars Berg | Kent Goss

Claims

Rogerson pursued comprehensive legal action to protect its aviation intellectual property in a Trade Secret lawsuit. It filed claims for misappropriation of trade secrets under the Texas Civil Practice & Remedies Code, specifically targeting the unauthorized disclosure of proprietary helicopter avionics technology. The company sought enforcement of multiple confidentiality agreements that protected its integrated cockpit display designs and system specifications. The legal strategy included claims for breach of joint ownership agreements regarding the collaborative development of aviation technology. Rogerson alleged unfair competition practices in the aerospace industry, citing Bell’s actions in enabling a competitor’s rapid entry into the complex helicopter avionics market. Additional claims addressed the conversion of proprietary avionics technology and breach of fiduciary duty. Rogerson sought both temporary and permanent injunctive relief to prevent further disclosure of its aviation trade secrets and to protect its position in the integrated cockpit display market. It requested substantial damages for lost profits, diminished value of proprietary technology, and the unauthorized use of its helicopter avionics systems. The case emphasized the critical nature of intellectual property protection in the aviation industry and the significant impact of trade secret misappropriation on technology innovators.

Defense

The defense emphasized Bell’s significant contributions to the joint development of the technology. Bell argued that its engineers had made substantial modifications and improvements to the original avionics designs through independent development efforts. It claimed that its advancements in helicopter display systems were driven by its own expertise in aircraft systems integration, not just Rogerson’s input. On the contractual front, Bell argued that its actions were within the scope of the agreements between the two companies. It maintained that the proprietary avionics designs belonged primarily to Bell due to its substantial investment in developing and certifying the technology, including its role in securing FAA certifications for the integrated cockpit displays. Bell also defended its decision to switch suppliers, asserting that it was a standard industry practice in aerospace manufacturing. It argued that alternative suppliers could independently develop similar avionics systems without accessing Rogerson’s alleged trade secrets. Bell highlighted the competitive nature of the aviation industry and the need for multiple supply chain options. Finally, Bell challenged Rogerson’s claims of financial damages, suggesting that any losses were the result of normal market competition rather than trade secret misappropriation. It further argued that the confidentiality agreements did not prevent the company from developing similar technology independently.

Jury Verdict

On October 24, 2024, the jury awarded Rogerson $16 million in damages for trade secret violations and contract breaches. The jury granted $2 million for Bell’s failure to comply with the Proprietary Information Exchange Agreements, based on lost profits from the breach. An additional $14 million was awarded for Bell’s misconduct, also related to lost profits. Court Documents: Available Upon Request