Echelon persuades USPTO that Peloton’s streaming tech is unpatentable

In some extra unhealthy information for Peloton, rival Echelon Health has persuaded the US Patent and Trademark Workplace that two of Peloton’s patents associated to streaming and on-demand lessons aren’t really patentable. The choice was made final week by the USPTO’s Patent Trial and Enchantment Board as they had been discovered to be “apparent innovations,” in keeping with Bloomberg Legislation. Whereas it will not be the largest blow Peloton has confronted in latest months, it does increase questions concerning the firm’s tendency to be heavy-handed with patent lawsuits.

To again issues up, all this took place after Peloton sued Echelon in 2019 for getting a “free journey” off its know-how and thereby flooding the market with cheaper copycat imitators. If you happen to’ve ever thought of shopping for a related health bike, you’ve most likely come throughout Echelon as a well-liked Peloton various, as they price a fraction of the worth. (Additionally, Echelon had a kerfuffle with Amazon in 2020 over a supposed partnership to create a $500 Prime Bike.) Nevertheless, as soon as the authorized brouhaha started, Echelon countersued and requested that two of the patents in query — Nos. 10,322,315 and 10,022,590 — be reviewed. Each relate to a “system and methodology for offering streaming and on-demand train lessons.” In its last resolution, the attraction board agreed with Echelon, saying the innovations weren’t distinctive sufficient in comparison with prior patents and subsequently shouldn’t have been issued within the first place. You may learn the complete choices right here and right here.

Clearly, Echelon is happy with the findings, with CEO Lou Lentine telling the Chattanooga Occasions Free Press it’s a “huge win” after spending a “lot of cash preventing these guys.” The Verge reached out to Peloton for an official remark however didn’t instantly obtain a response. It seems Echelon isn’t keen to let sleeping canine lie: The corporate additionally advised The Verge in an e-mail that it not too long ago filed a separate counterclaim towards Peloton that added allegations that it pushed Affirm into chopping ties with opponents, hampering shopper financing efforts, together with different bullying techniques.

Firms are at all times sniping at one another over patents. This isn’t even Echelon’s solely ongoing patent battle with Peloton. In November, Peloton was granted one other patent for its on-demand lessons. It then sued each Echelon and iFit, one other rival that owns the NordicTrack model. What makes this notable is it maybe pokes a gap in Peloton’s technique for dealing with rivals to this point: burying them in authorized battles.

One of many extra memorable examples was when Peloton took on smaller boutique rival Flywheel. In 2018, it alleged Flywheel had copied its patented tech, particularly the leaderboard which shows the place a person stands compared to others in a given class. Flywheel misplaced the battle, agreeing to nix its leaderboard and ultimately shutting down its digital lessons totally. The Flywheel bikes had been then bricked, and customers had been solely left with one actual possibility: take up Peloton’s provide to commerce within the bike for a refurbished Peloton. Ever since, Flywheel has served as a kind of cautionary story — each for shoppers seeking to purchase a sensible train bike and corporations within the related health house.

However whereas Peloton was profitable towards Flywheel, the stakes are a bit completely different now. Regardless of experiencing large success through the pandemic, Peloton’s luck hasn’t been good as of late. One motive for Peloton’s reversed fortunes is elevated competitors, and it seems the at-home health development is right here to remain. This lawsuit-heavy tactic could have labored a number of years in the past, however it’s exhausting to see the way it will play out in Peloton’s favor when it’s presently mulling cost-saving measures after overextending itself in 2020 and 2021, particularly since this type of patent conflict isn’t at all times sensible. In response to a Bloomberg report, the danger with Peloton’s technique is that it may backfire if courts deem that its “revolutionary know-how” isn’t so revolutionary in spite of everything. As in, what simply occurred with Echelon. Ought to this happen on a wider scale, Peloton dangers discovering itself out thousands and thousands of {dollars} and with out authorized protections for the core of its enterprise.

Peloton is predicted to current its newest earnings on February eighth, which ought to reveal extra about its present monetary well being. Regardless of latest struggles, the corporate nonetheless looms giant within the related health house. Nevertheless, we’ll must see the way it adapts to the brand new health tech panorama — and the place patent wars match going ahead.