British Internet via HAPS Firm Avealto in Trademark Spat with Airbus over Aalto

British technology and telecoms start-up Avealto, which is developing a High Altitude Platform (HAPs) that could be used in place of satellites to deliver broadband / data and voice connectivity, has got into a legal trademark spat with Airbus after the latter changed the name of their alternative Zephyr programme to Aalto.

The Zephyr programme, which is now called Aalto, has been running for 20 years and reflects Airbus’ communications and spy drone project. This is essentially a high altitude solar-powered drone / glider that was due to go into service in 2024. By comparison, Avealto is developing a 100-metre-long helium airship that would do its work to “connect the unconnected” (e.g. remote rural areas) from around 20km up in the air.

Overall, Avealto estimates its cost per Gbps (Gigabits per second) could be 7 to 11 times lower than existing satellite broadband technologies and that the cost of a global rollout of its platforms to be $230m compared to $10bn for satellites. It will fly its first commercial prototype in 2024.

Until recently, however, the two companies appeared to be pursuing separate sections of the market. But Avealto suggests that Aalto’s rebranding on 12th January 2023 appears to roughly coincide with a decision by Airbus to target the telecom services market, which Avealto has been preparing to serve since it was first established in 2013.

Avealto claims to welcome the increased competition Aalto’s market shift signals, which it argues will benefit consumers. However, it fears the alleged infringement of its trademarked name will threaten its ability to raise funds and market its services. This, it argues, will be detrimental to consumers and jeopardise the direct and indirect jobs the company hopes to contribute to Britain’s economy once it is fully operational.

Walt Anderson, Managing Director of Avealto Ltd, said:

“The actions by Airbus and its subsidiary, Aalto HAPS Ltd, are disappointing. 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.”

Avealto has sent Airbus a “cease and desist” legal letter over the name change, and they’ve also called upon the newly appointed Secretary of State for Business and Trade, Kemi Badenoch MP, to press Airbus into reviewing their decision. At this stage it’s not yet clear how well either of the projects will do in the telecoms sector, but hopefully they’ll both get a fair chance to show they can deliver.

As a side note, the diagram for Avealto’s setup doesn’t seem to reflect the new generation of satellites in Low Earth Orbit (LEO), usually around the 300-1000km mark (36,000km reflects the larger GEO/GSO comms satellites).