Quibi has found itself in some troubled waters lately. A month before launch, the streamer had to file a lawsuit hoping to pacify Eko — an interactive-video company — over claims that Quibi infringed a patent they hold over a similar technology to the Turnstyle feature.
But Judge Christina Snyder in the United States District Court of California has denied a preliminary injunction against the struggling streaming service. The filing said, “Based on a review of the evidence before the Court, Eko fails to meet its burden to demonstrate the likelihood of irreparable harm that will occur absent the requested injunctive relief. In particular…requisite specificity and evidentiary support and a casual connection to the alleged misappropriation.”
In a statement to The Streamable by a Quibi Spokesperson:
We are extremely pleased the Court ruled today that Eko has not presented a credible case for a preliminary injunction. Eko has no case against Quibi – this is a frivolous lawsuit brought by a company and CEO looking for a payday. We will continue to aggressively defend ourselves.”
The case continues to move forward though with Eko having a deep-pocketed hedge fund hedge fund giant, Elliott Management, behind them. Last month, it was reported by the Wall Street Journal that Elliot has made a “substantial” investment funding the lawsuit. In return, Elliott Management will garner some equity stake in the company.