Peloton sues NordicTrack maker Icon
America ı By Rheanna Chou
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Peloton relies on their patents to protect the value of their product. Bloomberg reported on statements from Peloton’s IPO document which suggested that challenges to intellectual property and patents could decrease the value of their brand.
While Peloton continues to assert their rights to patented inventions, competitors like Flywheel contend that Peloton simply took the next logical step in the industry. And after Flywheel challenged Peloton’s patents, the Patent Trial and Appeal Board found reason to institute a trial on three of Peloton’s patents.
According to Bloomberg reporting, the questions raised about Peloton’s patents concerned whether Peloton’s claimed inventions were “obvious” in the context of existing innovations, and whether they actually invented something patentable or simply identified a consumer need and then filled it.
Another argument is that the patented inventions themselves are not actually the cause of Peloton’s success in the industry, rather their success can be attributed to effective marketing of their industry innovations.
To prove the validity of their patents, Peloton would have to provide evidence that they added something new to what existed. Peloton ultimately triumphed over Flywheel’s patent challenges.
Limiting fair competition?
Peloton has demonstrated they’re ready to go after competitors whom may infringe on their patents. Flywheel may have settled out of court, but the cases against Echelon and Icon Health & Fitness are still ongoing.
The complaints against each competitor are largely the same — theft of Peloton’s technology and class offerings. There are several considerations in these cases: Did Echelon and Icon steal Peloton’s patented technology or did they develop their own? If they developed their own tech, does it still violate Peloton’s patents? Can Peloton claim intellectual property on their class offerings?
Pulling in wins against these companies similar to the win against Flywheel could give Peloton exclusive rights to a lucrative market and severely limit other companies’ ability to develop similar offerings and compete. Unfortunately taking these cases to court could be costly and we’ll have to wait and see whether Echelon or Icon take their cases all the way or settle out of court like Flywheel.
Are Peloton's complaints against competitors a valid defense of intellectual property or are they attempts to bully competition out of the market? Tell us your thoughts in the comments below.
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