In the lawsuit, Icon claims that it was issued a patent for the resistance level feature, which Peloton calls Auto-Follow, in 2007 and a second patent last year that allows for a seamless mix of aerobic and anaerobic exercise. Both are part of the Bike+, Peloton’s latest offering, and several NordicTrack products from Logan, Utah-based Icon.
“Some companies, like Peloton, have built (at least in part) entire businesses on the back of Icon’s patented technology,” the
A lawyer for Peloton called the suit “a retaliatory filing intended to deflect attention away from Icon’s blatant infringement of Peloton’s leaderboard technology and other deceptive practices.” It is “nothing more than a continuation of the litigation that Peloton filed against Icon earlier this year,” the lawyer, Steven Feldman, said in a statement.
Peloton shares dropped by 3.7% when the market opened Thursday but were trading up by 2.5% at $134.70 at 12:42 p.m. in New York.
The two companies have crossed swords before. New York-based Peloton
In Thursday’s lawsuit, Icon fired back by saying it had obtained “hundreds of patents on these systems before Peloton was founded.” It said that Peloton Chief Executive Officer
“Foley was warned at that meeting and subsequent meetings against infringing Icon’s patents,” according to the lawsuit.
Icon had previously sued Peloton when its first bike was launched and again when Peloton launched its first treadmill.
The latest development in the Peloton-Icon saga comes amid major growth in the home fitness market, as consumers look for ways to stay fit with many gyms across the U.S. remaining closed due to the coronavirus pandemic. Icon reached a $7 billion
In Thursday’s lawsuit, Icon is seeking unspecified damages and an injunction against sales.
(Updates with Peloton comment in fifth paragraph and latest stock price in sixth.)
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