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Quibi Shutdown: Eko Says It Will Continue to Pursue Legal Action

Interactive-video agency Eko says it’ll proceed to pursue its patent and trade-secret theft litigation towards Quibi, after Jeffrey Katzenberg and Meg Whitman introduced the startup will wind down operations and search to promote its belongings lower than seven months after Quibi launched.

New York-based Eko sued Quibi in March for allegedly infringing one in all Eko’s patents and misappropriating commerce secrets and techniques. The dispute facilities on Quibi’s Turnstyle characteristic, which determines the orientation of a viewer’s cellphone (both horizontal or vertical) and presents content material within the applicable mode.

Quibi has referred to as Eko’s claims baseless. In July, a choose within the case dismissed three of Eko’s 9 claims, leaving in place its core complaints over the theft and infringement of its mobile-video playback know-how.

Eko lawyer Neel Chatterjee, associate in Goodwin Procter’s mental property observe, stated in a press release: “We’ve got put Quibi on discover that it can not merely wind down its enterprise, ship its buyers a whole lot of thousands and thousands of {dollars} and promote its stolen know-how to a 3rd get together with out first resolving its points with Eko. We intend to vigorously pursue Eko’s rights to make sure that Quibi doesn’t exacerbate the hurt it has already prompted.”

Reps for Quibi didn’t reply to a request for remark.

Eko’s lawsuit is being funded by activist hedge fund Elliott Administration, which took a minority fairness stake within the firm this spring. Different Eko backers embrace Walmart, which invested $250 million within the firm as a part of a content-development pact.

Eko asserts that Quibi blatantly copied Eko’s options that use one in all its key patents, U.S. Patent No. 10,460,765, overlaying a system for interactive video playback.

In court docket filings, Quibi claims it started growing Turnstyle in September 2018 and famous that in February 2020 it was granted a patent overlaying numerous facets of the know-how. Quibi additionally claims Eko tried to “coerce” funds from Quibi associated to Eko’s personal patent.

In accordance to the Eko lawsuit, “Quibi ignored Eko’s warnings and Quibi secretly misappropriated Eko’s proprietary know-how” and that “It hid its theft till making an enormous public splash in a keynote handle on the January 2020 Shopper Electronics Present… proclaiming it as Quibi’s personal ‘Turnstyle’ know-how.”

The choose within the case beforehand rejected Eko’s request for an injunction in search of to block Quibi’s app from utilizing the allegedly stolen know-how. In July, U.S. District Decide Christina A. Snyder additionally dismissed a declare involving Katzenberg, Quibi’s founder, ruling there was no proof that Katzenberg entered into an “implied contract” when he took a gathering with Eko CEO Yoni Bloch. The choose additionally dismissed a declare accusing two former Snap workers who went to work for Quibi of stealing commerce secrets and techniques, in addition to a declare alleging that Quibi’s brand was confusingly comparable to Eko’s.

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