Echelon Fourm banner

1 - 1 of 1 Posts

14 Posts
Discussion Starter #1
I heard from a friend of mine that Peloton filed a lawsuit against Echelon back in October accusing them of infringing patents and trademarks. She sent me a couple of articles from October that I've been reading but I haven't found anything more recent about the case.

It's an interesting case to follow because I didn't fully realize how much their patents will make or break their stock prices.

Peloton relies heavily on its patents, trademarked brand, and use of copyrighted material to justify its lofty prices and distinguish its fusion of bikes and interactive live and recorded workouts. Looking to defend that turf, the company sued Echelon Fitness LLC this month for allegedly ripping off its patents and trade dress, after suing Flywheel Sports Inc. for patent infringement last year.

But investment analysts say Peloton’s IP may not be strong enough to stop competitors looking to undercut it. The company is fending off patent validity challenges at the Patent and Trademark Office and a lawsuit from the music industry, which says the company is using copyrighted music without permission.

Peloton, in its registration statement for its initial public offering, said it “depends in large part” on its intellectual property. If challenges invalidate the company’s patents and cheaper options become available, “Peloton doesn’t really have a moat around their business, and it would get commoditized very quickly,” Bloomberg Intelligence analyst Mandeep Singh said.

The company’s IPO document told investors that challenges could invalidate or narrow some of its rights, which “could reduce the value of our products, services, and brand.” Peloton said it tries to comply with copyright law, but “cannot guarantee” it holds rights to every piece of music on its service, adding potential liability.

“It’s really everything that new companies face, but all at once,” intellectual property attorney William Stroever of Cole Schotz PC said.
Have there been any new developments in the case or are they still in court?
1 - 1 of 1 Posts