Doug Kreuzkamp was stunned when he heard about Google’s planned auction win for a massive dataset from bankrupt Spirit Airlines. Springshot, the tech firm he founded, had supplied Spirit’s technology stack, yet received no notice about the impending sale. The auction terms are murky, leaving Springshot concerned that crucial intellectual property might be up for grabs.

The sale agreement vaguely references categories like ‘productivity and collaboration data’ and ‘core business systems and applications data,’ which could include Springshot’s proprietary information. Kreuzkamp argues that the agreement fails to differentiate clearly between what Spirit owns and what it doesn’t. He fears an ‘unauthorized acquisition and use of trade secrets,’ which could have dire consequences for startups.

In a limited objection, Springshot urged the court to pause the sale until a transparent forensic process can verify that none of the data being sold belongs to third parties. The stakes are high, with Springshot warning that such a precedent could risk the transfer of massive amounts of intellectual property to the world’s richest companies via bankruptcy courts.

If the court does not ‘pump the brakes,’ it risks sanctioning an unauthorized acquisition and use of trade secrets, potentially dooming startups. Kreuzkamp hopes to avoid setting a dangerous precedent where third-party IP is casually transferred to corporations with monopolistic power.