Just weeks before launching its streaming service, Quibi on Monday filed documents in federal court denying it stole technology from New York-based interactive video firm Eko.
Eko, which creates interactive videos that allow consumers to choose their own path in stories and educational programs, has accused Hollywood-based Quibi of infringing on a patent that Eko believes is similar to a Quibi feature called "turnstyle." The technology allows users to turn their phones vertically or horizontally to gain a different view point when watching videos.
Quibi denied the claims Monday and is seeking a court ruling to establish that it did not lift Eko's technology.
The legal dispute comes at a delicate time for Quibi, which has much riding on the debut of its much-anticipated service that plans to deliver bite-sized entertainment _ stories told in episodes of 10 minutes or less _ for mobile phones.
Eko's attorney, Neel Chatterjee, said in a January letter to Quibi that Eko "was stunned with what it saw" at Quibi's CES keynote that spotlighted the "turnstyle" technology. The letter was filed as evidence by Quibi in L.A. federal court.
"The turnstyle technology, which was the centerpiece of the entire presentation, was the precise proprietary technology that Eko had shared with Quibi executives several months ago and with Quibi engineers who had access to Eko's source code and proprietary information subject to an NDA when they worked for a prior employer," Chatterjee wrote in a Jan. 28 letter to Quibi.
Eko said it discussed its service with Quibi Chairman Jeffrey Katzenberg in late March 2017 in an effort to gain more funding for Eko, and also shared information about Eko's technology with Snap, the Santa-Monica-based social media and camera company.
Eko believes some Quibi engineers shared information they learned from their former employer, Snap, before they joined the streaming service, according to the letter. Quibi said that no trade secrets were revealed at the 2017 Katzenberg meeting with Eko and that no NDAs were signed. The company also said no former Snap employees brought Eko trade secrets to Quibi and that its "turnstyle" technology is different from Eko's patent.
"Quibi's app was developed independently by Quibi's engineers without reference to or use of any trade secret of Eko," the company said in legal documents. "Quibi's app is the product of many months of effort in designing, engineering, testing and refining the app."
Quibi is asking the court to rule that it has not infringed on the patent and to stop Eko from hurting Quibi's brand or interfering with its launch.
"Unfortunately, with the advertised launch of a high-profile new service, Quibi has already been targeted by a company looking to make a name for itself and to capitalize on Quibi's early acclaim by making demonstrably false claims of intellectual property infringement," the company said in legal documents filed in federal court Monday.
Eko CEO Yoni Bloch did not immediately return a request for comment.
Quibi plans to launch its service on April 6 with 50 titles.
In its first year, Quibi will have 175 original shows and 8,500 episodes. The company has already raised $1.75 billion and is led by CEO Meg Whitman and chairman Katzenberg.
The service will cost $4.99 with ads and $7.99 without ads per month.
