The Walt Disney Co. and ESPN Inc. are asking a federal judge to toss a tech startup’s lawsuit accusing them of stealing trade secrets to develop a rival sports-streaming app — a case that pits Silicon Valley-style innovation against corporate media power.

In a motion filed Friday, Disney, ESPN Inc., and ESPN Enterprises argued that SportsBubble Inc. has no legitimate claim under federal or state law. The entertainment giants said their nondisclosure agreement (NDA) with the startup explicitly allowed them to pursue independent development of similar technology — a detail that undermines every accusation in the 58-page complaint.

“Plaintiff attempts to turn ordinary business talks into a conspiracy,” Disney and ESPN wrote, saying SportsBubble failed to allege “a single viable claim.”

Background: The WatchSports Pitch and ESPN’s “Where to Watch”

SportsBubble, the creator of the WatchSports app, says it met with ESPN in September 2021 to discuss a potential partnership that would integrate ESPN+ programming. By February 2022, both sides reportedly reached a preliminary agreement — but ESPN soon requested confidential technical details about the app.

The startup claims it shared this data under an NDA, only to later see ESPN launch Where to Watch in March 2023 — an allegedly “virtual carbon copy” of its product.

SportsBubble sued, alleging trade secret misappropriation, breach of contract, fraudulent concealment, and unjust enrichment.

ESPN Fires Back: “No Theft, Just Competition”

Disney and ESPN counter that the NDA, signed Sept. 8, 2021, clearly stated neither side was barred from independently developing a competing app. Moreover, ESPN had already been conducting its own R&D in the same field, the motion says.

“The parties tried, failed to strike a deal, and then went their separate ways,” the memorandum argued. “Under no plausible reading does that make this a theft case.”

The defendants further dismissed SportsBubble’s claim that Where to Watch was a “carbon copy” of WatchSports. They argued that offering programming information and links to live events is a standard function shared by numerous companies — from Google to Amazon and Roku — making SportsBubble’s purported trade secrets neither unique nor protectable.

Fraud Allegations Called “Empty Speculation”

The startup’s fraud claims hinge on two ESPN employees’ statements expressing enthusiasm about a potential deal. Disney’s attorneys called these “non-factual expressions of interest,” not lies.

They added that SportsBubble itself “relentlessly pursued” the partnership, despite knowing ESPN was working on a similar service.

“Excitement is not a misrepresentation,” the motion said, underscoring the lack of fraudulent intent.

Disney and ESPN Seek Total Dismissal

In total, the media conglomerates are seeking dismissal of all claims — including those for breach of contract and unjust enrichment — arguing they duplicate the trade secret claims and stem from the same facts.

Representatives for both sides did not immediately respond to requests for comment.

SportsBubble is represented by Neal Brickman of The Law Offices of Neal Brickman PC.
Disney and ESPN are represented by Jared Barrett Briant, Katherine Sorensen Razavi, and Jeffrey S. Jacobson of Faegre Drinker Biddle & Reath LLP, alongside Rachel Schwartz of The Walt Disney Co..