Avealto launches trademark action against Airbus
February 13, 2023
By Colin Mann
UK-based tech disruptor Avealto is taking legal action against a subsidiary of Airbus.
The company, which is committed to providing a novel, environmentally friendly solution to deliver low cost, high-speed Internet to the world’s poorest communities, has issued a cease and desist letter against Airbus HAPS Connectivity Solutions Ltd – recently renamed Aalto HAPS Ltd – in relation to its infringement of Avealto’s trademarked name.
Both ‘Avealto’ and rebranded Airbus subsidiary, ‘Aalto’, are developing High Altitude Pseudo Satellites (HAPS) to offer cheaper, more reliable alternatives to point-to-point satellite services. Avealto is developing an environmentally friendly fleet of next generation 100-metre-long helium airships to ‘connect the unconnected’. These will provide internet access to some of the world’s poorest communities. Aalto, meanwhile, is pursuing its “Zephyr” high altitude flying wing design.
Until recently, however, the two companies were pursuing separate sections of the market. Aalto’s rebranding on January 12th, 2023, appears to coincide with a decision by the company to target the telecom services market that Avealto has been preparing to serve since it was first established in 2013.
Avealto welcomes the increased competition Aalto’s market shift signals, which it argues will benefit consumers. However, it fears the infringement of its trademarked name by Airbus will threaten its ability to raise funds and market its services. This, it argues, will be detrimental to consumers and jeopardise the hundreds of direct and indirect jobs the company is forecast to contribute to Britain’s post-Brexit economy once it is fully operational.
Avealto is confident in its commercial offering. Citing its lower costs, it says these will enable it to offer affordable internet provision to the millions of people around the world currently living ‘unconnected’. It will also be able to disrupt existing markets by offering a lower cost alternative for the 43 million ‘remote’ Internet users beholden to expensive point-to-point satellite internet providers. It has valued this market alone at $23 billion (€21.5bn). Overall, it estimates its cost per Gbps will be seven to 11 times lower than existing satellite technologies and that the cost of a global rollout of its platforms to be $230 million compared to $10 billion for satellites. It will fly its first commercial prototype in 2024.
While Airbus has previously promoted the Zephyr vehicle to the UK Ministry of Defence and other Governments around the world, to date, only a few vehicles have been sold to the UK government.
In response to the trademark infringement, Avealto has written to the newly-appointed Secretary of State for Business and Trade, Rt Hon Kemi Badenoch MP. In his letter, Walt Anderson, Managing Director of Avealto has urged the Minister to write to Airbus calling for them to review the decision by Aalto HAPS Ltd, while, at the same time, halting any future procurement from Aalto HAPS Ltd until the matter is resolved.
“The actions by Airbus and its subsidiary, Aalto HAPS Ltd, are disappointing,” said Anderson. “Their actions demonstrate a clear infringement of our trademark and have left us with no choice but to take legal action.”
“We welcome the Aalto’s decision to market its platform toward the telecoms sector. This increased competition is for the benefit of the consumer. What is unwelcome, however, is the wilful infringement on our trademark. This appears to be a rather cynical attempt by Airbus to restrict our ability to raise funds and market our services and to stifle its competition. This would be detrimental to consumers and jeopardise the hundreds of direct and indirect jobs we are set to contribute to Britain’s post-Brexit economy once we are fully operational.”
“We know that our HAPS technology presents a more attractive commercial offering than that of Aalto’s. Our technology is simpler, more reliable and more cost effective. We believe Aalto recognises and that that is why it’s taken the action that it has.”
“I am calling directly on the leadership of Airbus to take action to correct this wrongdoing,” he concluded.