The Flow Report - IP Wars in Alternative Data
It might be a sign of a maturing industry - the largest players in alternative data and investment research are now turning to the courts in the United States to enforce their intellectual property rights and check their competitors. Often smaller disputes are settled privately - whether through a phone call, a change in deal terms, or with the decision to end a business relationship. Increasingly, it seems that well-known providers of once-obscure data are willing to risk public scrutiny to protect their growing businesses. Perhaps this is not surprising as the data industry produces public companies and billion dollar valuations. But is it good for business?
Three cases in the alternative data industry represent the range of disputes that are inspiring litigators.
BOILERPLATE OFFENSIVE
In October 2024, YipitData sued two former employees for alleged breaches of their employment agreements and trade secret violations. Many of these issues are often addressed with non-solicitation and non-compete agreements (which have become part of a broader debate in the US), but rarely do alt data professionals wind up resolving them in court. The dramatic evidence presented and surprising nature of the claims led many to view them as aggressive if not concerning.
But the case took a more serious turn last week, as YipitData filed a notice suggesting that it may add M Science (the company initially labeled "Competitor" but unnamed in the original complaint) to an amended complaint, formally bringing them into the litigation. Unfortunately, an escalation of the dispute to the corporate level and adding senior management of M Science could threaten to destabilize the products and business of either side. Both companies likely have the resources to litigate for some time. YipitData has suggested that product-related IP was taken - perhaps the clearest risk from the outset.
And now, as of January 21st, 2025, M Science has responded with a similar lawsuit of its own against YipitData. M Science's suit alleges that a former employee used his M Science login from 2020-2022 to build YipitData’s products. Interestingly, the federal trade secret law and New York trade secret statutes of limitations are both 3 years (from discovery of misappropriation). M Science states that it discovered the problem in 2022, meaning that the clock had nearly run out on its IP claim. It remains to be seen whether this new suit is part of a strategy to create leverage for a potential settlement with YipitData.
AN EXPERT NETWORK BY ANY OTHER NAME
AlphaSights or AlphaSense? It turns out that AS also thinks the branding is confusing. AlphaSights has operated in the expert network industry since 2008, whereas AlphaSense is a more recent entrant (at least at the scale facilitated by its recent acquisition of Tegus). According to AlphaSights, the names are so similar that clients are paying the wrong company for invoices in some cases. The remedy might be simple in this case - a new name for AlphaSense's expert network business. Whether that remedy would satisfy AlphaSight's strategic aims remains to be seen.
BUILDING AN AI MONOPOLY
Bright Data Ltd. and X Corp. have spent months litigating a broad range of claims related to scraping Twitter (which does offer API access to content for a fee). The case has attracted significant attention in the data industry as the latest representative study in the state of relevant law in the US. Bright Data has developed an elaborate theory that X is building a content monopoly, with the ultimate goal of training an AI model controlled by Elon Musk - and suddenly the company is engaged in the strange side-show of attempting to personally serve Mr. Musk with a subpoena for documents.
Apparently, it's hard to catch him at the office.
Don D'Amico
Glacier Network, Founder & CEO
©2025 Glacier Network LLC d/b/a Glacier Risk (“Glacier”). This post has been prepared by Glacier for informational purposes and is not legal, tax, or investment advice. This post is not intended to create, and receipt of it does not constitute, a lawyer-client relationship. This post was written by Don D’Amico without the use of generative AI tools. Don is the Founder & CEO of Glacier, a data risk company providing services to users of external and alternative data. Visit www.glaciernetwork.co to learn more.