Twitter Threatens to Sue Meta over Threads Platform

(COMBO) This combination of file pictures created on July 06, 2023 shows Elon Musk as he speaks during his visit at the Vivatech technology startups and innovation fair at the Porte de Versailles exhibition center in Paris on June 16, 2023, and Meta CEO Mark Zuckerberg as he speaks during the 2013 TechCrunch Disrupt conference in San Francisco, California, on September 11, 2013. (Photo by Alain JOCARD and JUSTIN SULLIVAN / various sources / AFP)
(COMBO) This combination of file pictures created on July 06, 2023 shows Elon Musk as he speaks during his visit at the Vivatech technology startups and innovation fair at the Porte de Versailles exhibition center in Paris on June 16, 2023, and Meta CEO Mark Zuckerberg as he speaks during the 2013 TechCrunch Disrupt conference in San Francisco, California, on September 11, 2013. (Photo by Alain JOCARD and JUSTIN SULLIVAN / various sources / AFP)
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Twitter Threatens to Sue Meta over Threads Platform

(COMBO) This combination of file pictures created on July 06, 2023 shows Elon Musk as he speaks during his visit at the Vivatech technology startups and innovation fair at the Porte de Versailles exhibition center in Paris on June 16, 2023, and Meta CEO Mark Zuckerberg as he speaks during the 2013 TechCrunch Disrupt conference in San Francisco, California, on September 11, 2013. (Photo by Alain JOCARD and JUSTIN SULLIVAN / various sources / AFP)
(COMBO) This combination of file pictures created on July 06, 2023 shows Elon Musk as he speaks during his visit at the Vivatech technology startups and innovation fair at the Porte de Versailles exhibition center in Paris on June 16, 2023, and Meta CEO Mark Zuckerberg as he speaks during the 2013 TechCrunch Disrupt conference in San Francisco, California, on September 11, 2013. (Photo by Alain JOCARD and JUSTIN SULLIVAN / various sources / AFP)

Twitter has threatened to sue Meta Platforms over its new Threads platform in a letter sent to the Facebook parent's CEO Mark Zuckerberg by Twitter's lawyer Alex Spiro. Meta, which launched Threads on Wednesday and has logged more than 30 million sign ups, looks to take on Elon Musk's Twitter by leveraging Instagram's billions of users.
Spiro, in his letter, accused Meta of hiring former Twitter employees who "had and continue to have access to Twitter's trade secrets and other highly confidential information," News website Semafor first reported.
"Twitter intends to strictly enforce its intellectual property rights, and demands that Meta take immediate steps to stop using any Twitter trade secrets or other highly confidential information," Spiro wrote in the letter. A Reuters source with knowledge of the letter confirmed its contents on Thursday. Spiro did not respond to a Reuters request for comment. "No one on the Threads engineering team is a former Twitter employee — that's just not a thing," Meta spokesperson Andy Stone said in a Threads post.
A former senior Twitter employee told Reuters they were not aware of any former staffers working on Threads, nor any senior personnel who landed at Meta at all. Meanwhile, Twitter owner Musk said, "Competition is fine, cheating is not," in response to a tweet citing the news.
Meta owns Instagram as well as Facebook. Since Musk's takeover of the social media platform last October, Twitter has received competition from Mastodon and Bluesky among others. Threads' user interface, however, resembles the microblogging platform.
Still, Threads does not support keyword searches or direct messages. To press a trade secret theft claim against Meta, Twitter would need much more detail than what is in the letter, said intellectual property law experts including Stanford law professor Mark Lemley.
"The mere hiring of former Twitter employees (who Twitter itself laid off or drove away) and the fact that Facebook created a somewhat similar site is unlikely to support a trade secrets claim," he said.
Jeanne Fromer, a professor at New York University, said companies alleging trade secret theft must show they made reasonable efforts to protect their corporate secrets. Cases often revolve around secure systems that were circumvented in some way. The newest challenge to Twitter follows a series of chaotic decisions that have alienated both users and advertisers, including Musk's latest move to limit the number of tweets users can read per day.



EV Maker Rivian Beats Expectations for Deliveries as Supply Snag Eases

Workers assemble second-generation R1 vehicles at electric auto maker Rivian's manufacturing facility in Normal, Illinois, US June 21, 2024. REUTERS/Joel Angel Juarez/File Photo
Workers assemble second-generation R1 vehicles at electric auto maker Rivian's manufacturing facility in Normal, Illinois, US June 21, 2024. REUTERS/Joel Angel Juarez/File Photo
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EV Maker Rivian Beats Expectations for Deliveries as Supply Snag Eases

Workers assemble second-generation R1 vehicles at electric auto maker Rivian's manufacturing facility in Normal, Illinois, US June 21, 2024. REUTERS/Joel Angel Juarez/File Photo
Workers assemble second-generation R1 vehicles at electric auto maker Rivian's manufacturing facility in Normal, Illinois, US June 21, 2024. REUTERS/Joel Angel Juarez/File Photo

Rivian surpassed analysts' expectations for fourth-quarter deliveries on Friday and said its production was no longer constrained by a component shortage, a positive sign for the electric vehicle maker aiming to turn its first profit.

Shares of the California-based company rose nearly 6% in premarket trading. The stock lost more than 40% of its value in 2024.

The shortage of the part used in its R1 SUV and R1T pickups, as well as its delivery vans, started in the third quarter and forced Rivian to slash its annual production target in October.

"The previously discussed shortage of a shared component on the R1 and RCV platforms is no longer a constraint on Rivian's production," the company said on Friday, Reuters reported.

Rivian handed over 14,183 vehicles in the three months ended Dec. 31, compared with estimates of 13,472, according to 15 analysts polled by Visible Alpha.

That was a 42% jump from the previous quarter and marked Rivian's highest deliveries in more than a year, even though Amazon.com, its biggest backer, takes fewer deliveries in the fourth quarter due to its focus on holiday season sales.

Rivian produced 12,727 vehicles in the quarter, compared with estimates of 11,398 units.

For 2024, production came in at 49,476 vehicles, down about 13% from a year earlier but above the company's lowered target of between 47,000 and 49,000 units.

Rivian has cut costs sharply by renegotiating supplier contracts and revamping its manufacturing processes to turn a gross profit for the fourth quarter. It also entered a technology joint venture with German automaker Volkswagen last year that will provide a $5 billion lifeline.

EV makers are grappling with slowing demand as higher borrowing costs push buyers toward cheaper gasoline-powered hybrid vehicles and legacy automakers focus on rolling out electric vehicles.

Bigger rival Tesla reported its first fall in yearly deliveries on Thursday, also weighed down by the EV pioneer's aging lineup.