For years Kytch worked to invent and sell a device designed to fix McDonald's ice cream machines, only for the fast-food giant to crush their business. Now the startup is seeking revenge - nearly a billion dollars worth of it.
legal complaint
Those emails warned franchisees that the Kytch devices not only violated the ice cream machines’ warranties and intercepted their "confidential information" but also posed a safety threat and could lead to “serious human injury," a claim that Kytch describes as false and defamatory. Kytch also notes that McDonald's used those emails to promote a new ice cream machine, built by its longtime appliance manufacturing partner Taylor, that would offer similar features to Kytch.
Kytch first fired back against the fast-food ice cream establishment last May, suing Taylor and its distributor TFG for theft of trade secrets. The Kytch founders argued in that lawsuit that Taylor worked with TFG and one franchise owner to stealthily obtain a Kytch device, reverse-engineer it, andBut all along, Kytch's cofounders have hinted that they intended to use the discovery process in their lawsuit against Taylor to dig up evidence for a suit against McDonald's too.
Finally, the Kytch complaint points out that the company’s cofounder Jeremy O'Sullivan wrote those points in an email to a McDonald's franchisee who later shared them with McDonald's. "McDonald's knew that its statements were false and had actual knowledge that Kytch does not create any incremental risk in Taylor's soft-serve machines," the complaint reads.
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