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A high-stakes legal battle between Beijing Meishe Network Technology Co. Ltd. and TikTok Inc. will head to trial this October after a California federal judge declined to fully grant TikTok’s motion for summary judgment or terminating sanctions. The case, involving claims of trade secret theft and copyright infringement valued at $845 million, is set for a 12-day jury trial beginning October 27.

In a 36-page ruling, U.S. District Judge Susan Illston determined that material disputes of fact remain regarding Meishe’s copyright ownership and alleged misappropriation of trade secrets. While the court dismissed claims against TikTok’s parent company ByteDance Ltd., it allowed the core intellectual property claims against TikTok to proceed.

The lawsuit, filed in 2021 and later transferred to the Northern District of California, alleges that a former Meishe employee misappropriated highly confidential source code, which was then used by TikTok and ByteDance affiliates to develop video-editing features. Meishe asserts that the misappropriated code is worth approximately $845 million.

ByteDance terminated the employee in question in 2023, while reserving its rights to pursue related claims. Both parties have since engaged in extensive motion practice, including cross-motions for summary judgment and evidentiary challenges over expert testimony.

Judge Illston rejected TikTok’s bid for terminating sanctions, finding that while some of Meishe’s witness conduct was questionable, it did not warrant dismissal. The court also ruled that key documents from related Chinese litigation and licensing agreements between Meishe and Xin Ao Te (XAT) were admissible, strengthening Meishe’s claim of ownership over the disputed intellectual property.

“This ruling ensures that the issues at the heart of the TikTok Chinese company $845M IP fight will be heard and decided by a jury,” said [Spokesperson/Representative for Meishe]. “We remain confident in our position and look forward to presenting our case.”

TikTok and its representatives did not immediately comment on the ruling.

The case is Beijing Meishe Network Technology Co. Ltd. v. TikTok Inc. et al., Case No. 3:23-cv-06012, in the U.S. District Court for the Northern District of California.