OpenEvidence Files Lawsuit Against Pathway Medical for Alleged Trade Secret Misappropriation.

Legal Dispute Over AI Technology Raises Concerns About Cybersecurity and Intellectual Property Rights.

Boston, MA — OpenEvidence Inc., a leading developer of artificial intelligence (AI) solutions for the medical industry, has filed a lawsuit against Pathway Medical Inc., a Canadian competitor, alleging the unlawful misappropriation of proprietary data.

The complaint, submitted on February 26, 2025, in the U.S. District Court for the District of Massachusetts, asserts that Pathway Medical illegally accessed OpenEvidence’s AI system through prompt injection attacks, thereby extracting sensitive trade secrets.

Allegations of Unauthorized Access and Data Theft

According to the lawsuit, Pathway Medical obtained user credentials and conducted unauthorized access to OpenEvidence’s AI platform.

The alleged prompt injection attacks—a technique used to manipulate AI outputs—enabled Pathway to retrieve confidential data and proprietary algorithms. OpenEvidence contends that this extracted information was then utilized to develop a competing AI system, in direct violation of federal trade secret laws and contractual agreements.

Legal Claims and Statutory Violations

The lawsuit outlines multiple legal claims, including:

• Trade Secret Misappropriation – The unauthorized acquisition and use of proprietary AI-generated data.
• Breach of Contract – Violation of OpenEvidence’s terms of service, which explicitly prohibit unauthorized data extraction.
• Computer Fraud and Abuse Act (CFAA) Violations – Illicit access to OpenEvidence’s AI infrastructure.
• Digital Millennium Copyright Act (DMCA) Violations – Circumvention of security protocols to access and utilize copyrighted AI content.

The case is currently under the jurisdiction of Judge Myong J. Joun in the Massachusetts federal court.

Implications for AI Security and Intellectual Property Protection

This lawsuit underscores critical issues surrounding AI security, data protection, and intellectual property rights in the emerging field of artificial intelligence.

As AI systems become increasingly sophisticated, concerns about cybersecurity, data scraping, and unauthorized access are gaining prominence. Legal experts anticipate that this case could set a precedent for how AI-generated content and proprietary algorithms are legally protected under U.S. law.

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Case Outlook and Industry Response

As of now, Pathway Medical has not issued a public response to the allegations. The case remains in its early stages, with both parties preparing for discovery and potential pre-trial motions.

Given the significance of AI technology in the healthcare industry, this dispute may have far-reaching implications for AI governance, ethical use, and the enforcement of trade secret protections.