Toronto startup accuses B.C. tech giant Clio of trying to drive it out of business

Toronto-based AI legal software startup Alexi Technologies has filed a counterclaim and lawsuit against Clio, a British Columbia-based legal technology company, accusing it of attempting to force Alexi out of business. The dispute stems from a 2021 data-licensing agreement with Fastcase (acquired by Clio), which granted Alexi access to a legal database for internal research. Clio alleges Alexi misused this access to build a competing AI-powered tool, while Alexi claims Clio is acting anti-competitively to prevent a rival from challenging its market position.

Alexi asserts that Clio’s actions, including a lawsuit filed in December, have severely damaged its business, forcing it to cut staff from 50 to 20 and hindering fundraising efforts. A key point of contention is a clause in the original contract that would allow an acquirer of Alexi to purchase Fastcase’s database without restrictions, a right Alexi claims Clio attempted to nullify after acquiring vLex.

Clio denies Alexi’s claims, maintaining the lawsuit is about enforcing a licensing agreement that prohibits commercial use of the data. The case revolves around allegations of contract breach, intellectual property rights, and competitive interference, with neither side’s claims yet proven in court.

(Source：Theglobeandmail)