Cork tech company Everseen, which is backed by several high profile Irish business figures, is suing Walmart in the US, alleging the retail giant stole its technology to build a competing product.
verseen develops technology using artificial intelligence to improve efficiencies at self-service checkouts, such as spotting irregularities like items not scanning.
The company, which is valued at over €100mm sells the technology, called ‘checkout process intelligence’ (CPI), to retailers as a means to reduce theft in stores. Walmart was one of its most high profile customers.
In a lawsuit filed in Arkansas, where Walmart’s corporate headquarters are located, the Cork company alleges that Walmart used confidential and proprietary information about its technology shared during contract review talks to eventually build its own product which operates similarly to Everseen’s.
“Walmart was able to develop and implement the Walmart Derivative Technology at a pace that can only be explained by unlawful misappropriation and misuse of Everseen’s information and trade secrets,” Everseen claims.
Everseen is seeking damages and for any work created by Walmart using its tech to be assigned to the Irish company.
Everseen declined to comment on the legal action.
In the complaint filing, Everseen said that its algorithms and code are “not publicly known” but details of the company’s technology and how it works were shared with Walmart as part of talks between the two sides. It added that any misappropriation of its technology would have a “devastating impact” on the company.
Everseen claims the company now “faces competition in the form of its own technology, misappropriated and re-branded by the world’s largest retailer, Walmart”.
While the lawsuit was filed earlier this month, Walmart said it has not yet been served with the complaint.
“We take the intellectual property rights of others seriously. We will respond in court as appropriate once we are served with the complaint,” a spokesman for Walmart said.
Everseen was founded in 2007 and is headed up by chief executive Alan O’Herlihy. Backers include prominent business figures Carl McCann, Cyril McGuire, Tayto Park owner Ray Coyle and the chief executive of the Irish Continental ferry group, Eamonn Rothwell,
In 2019 it reported turnover for that year of €10.3 million with losses of €8 million as it invests in further international expansion.
