July 14, 2020
Quibi, the $1.7 billion funded subscription streaming video service from DreamWorks Animation founder Jeffrey Katzenberg and eBay founder Meg Whitman, got a legal break from ongoing concerns about its underwhelming business model.
A Los Angeles District Court judge July 13 ruled against tech rival Eko’s claim that Quibi illegally uses its “turnstile” technology enabling users to alter how they watch video on portable devices by filling the screen whether the device is held vertically or horizontally.
“In short, Eko fails to make a clear showing of irreparable harm suffered by way of reputation and goodwill,” Judge Christina Snyder wrote denying Eko a preliminary injunction.
Quibi heralded the decision, contending Eko never had a case, and alleging the litigation was an attempt at a payday.
“We will continue to aggressively defend ourselves,” said the streamer.
A lawyer representing Eko said the decision would be appealed.
“We look forward to presenting the merits of the case at trial, including our request for substantial damages,” Neel Chatterjee said in a statement.
Regardless, Quibi, which offers subscribers access to original content no longer than 10 minutes in length for $4.99 (with ads) and $7.99 (without ads), has struggled to retain subscribers. The service claims its app has been downloaded more than 5.6 million times since the April launch. How many are active subscribers has not been disclosed.