US-based Code.org sues Byju’s subsidiary WhiteHat Jr for contract breach

US-based Code.org has dragged Byju’s coding-for-kids business WhiteHat Jr to court for a breach of contract allegedly set off by the latter’s non-payment for a content licensing agreement between the two.

Code.org is an education-related nonprofit organisation that provides K-12 computer science curriculum in school districts in the US. Its donors include Microsoft, Amazon and Google, among others, according to its website.

The two parties had entered into an agreement in April 2022, wherein Code.org agreed to license to WhiteHat certain limited rights to use its platform and lesson content in connection with WhiteHat’s online tutoring service.

As consideration for the contract, WhiteHat Jr. had agreed to pay Code.org licensing fees totaling $4 million to a four-year schedule, as per details shared by the complainant in the lawsuit filed in the northern district court of California, which was reviewed by ET.

Byju’s and Code.org did not respond to ET’s request for comment immediately. The development was first reported by TechCrunch.

Code.org alleged in the lawsuit that WhiteHat failed to meet the requirements of the agreement following its termination and also subsequently fix “material breach by paying the invoiced amounts,” despite repeated chances.

Accordingly, Code.org has sought damages of no less than $3 million plus interest at the maximum rate authorised by applicable law, as per the lawsuit.“WhiteHat is still featuring Byju’s FutureSchool content on YouTube that features not only the Code.org logo on the top middle of the page but also an explicit reference to Code.org’s copyright on the bottom right corner of the page,” the lawsuit, dated December 1, said.

Byju’s had acquired WhiteHat Jr in an all-cash deal worth $300 million in 2020, marking its entry into the computer code learning segment, with a focus on high school and college students. However, since 2022, Byju’s has been winding down the coding platform.

WhiteHat Jr has been restructuring since 2022. The process began in May when 800 employees resigned after being asked to work from the office. In June, it laid off around 300 full-time employees.

Over 2023, following several tumultuous changes at Bengaluru-headquartered Byju’s including a board overhaul, delayed financial and multiple lawsuits, WhiteHat Jr shut down.