Spanish Balloon Company Zenith Accuses Halo Space and Eos X of Trade Secret Theft
Spanish high-altitude balloon company Zero 2 Infinity, known for its space tourism endeavors, has accused Halo Space, Eos X Space Technologies Corp., and Arthur D. Little Spain of unlawfully obtaining its trade secrets. Zero 2 Infinity alleges that individuals and organizations hired to raise funds for its space tourism business used the acquired funds to establish competing enterprises based on its intellectual property. The indictment was filed on October 31 in Madrid.
According to Zero 2 Infinity founder and CEO, Jose Mariano Lopez-Urdiales, the accused parties requested extensive documentation to share with potential investors. However, instead of using the information solely for fundraising purposes, they altered the logo in presentations and managed to raise 1 million euros for a new company that only had a website with computer-generated imagery. This financial distress significantly impacted Zero 2 Infinity, as it was expecting the 1 million euros to arrive.
Halo Space, one of the accused parties, has strongly denied these charges and is prepared to take all necessary legal actions to defend itself. The company emphasized that space tourism to the stratosphere is based on aerospace technologies that have been developed and tested over the past 60 years. According to Halo Space, these technologies, such as stratospheric balloons, pressurized capsules, and parachutes for descent and landing, were established long before Zero 2 Infinity entered the industry. Furthermore, Halo Space asserts that it has never had any contractual relationship with Zero 2 Infinity or Arthur D. Little.
Eos X Space founder and chairman, Kamal Kharbachi Jader, has not responded to requests for comment. Similarly, Arthur D. Little Spain and Carlos Mira Martin, former Arthur D. Little Spain president and Halo Space founder and CEO, have remained silent regarding the allegations.
The individuals and organizations indicted on October 31 face charges of disclosing trade secrets under Article 277 of Spanish Criminal Law. The potential penalties for this offense, as stated by Spanish attorney Leonardo López Marcos, include imprisonment ranging from three to five years, as well as fines.
Zero 2 Infinity was established by Jose Mariano Lopez-Urdiales in 2009, with the goal of developing a launch vehicle for small satellites and a balloon for space tourism. Despite technical progress and successful test flights, the company faced difficulties in securing financing. To overcome this challenge, Lopez-Urdiales signed agreements with individuals whom he believed would contribute to fundraising efforts, stipulating that they would retain 10% of the funds raised.
Allegedly, these agreements were violated when the accused parties used the confidential information shared by Zero 2 Infinity to create competing companies. Zero 2 Infinity claims that Kamal Kharbachi raised $1 million for its space tourism project, but instead transferred the funds to Eos-X, a Madrid-based space tourism company. Meanwhile, Carlos Mira, then president of Arthur D. Little Spain, established Halo Space, a balloon space tourism company offering commercial flights at high altitudes.
Despite the ongoing legal battle with the accused parties, Zero 2 Infinity remains committed to its space tourism endeavors. The company acknowledges its current financial challenges but maintains its belief in the viability and importance of its proposals.
Halo Space, on the other hand, has conducted five successful test flights, including recent tests in California’s Mojave Desert. These flights included the testing of a paraglider-type steerable parachute for descent and landing. The company considers this progress a significant milestone in its development program, enabling it to move forward with manufacturing plans and advance its test flight schedule for 2023 and 2024. Halo Space aims to commence commercial operations in 2025, offering tickets priced at 150,000 euros ($160,255).
The legal battle between Zero 2 Infinity, Halo Space, Eos X Space Technologies Corp., and Arthur D. Little Spain highlights the challenges faced by companies in the space tourism industry and the importance of safeguarding intellectual property. The outcome of this case will have significant implications for the parties involved and may shape the future of space tourism endeavors.
