Video company Eko claims Quibi stole its trade secrets over ‘Turnstyle’ videos
Hedge fund Elliott Management Corp. is financing a high-stakes patent lawsuit against Quibi, the new streaming service founded by entertainment veteran Jeffrey Katzenberg, according to people familiar with the situation, putting power players of Wall Street and Hollywood on a collision course.
Elliott has agreed to fund a suit brought by interactive-video company Eko, which claims Quibi is violating its patents and has stolen trade secrets, the people said. As part of the financing, Elliott would end up with an equity stake, the people said. The size of the equity stake couldn’t be learned, though it is a substantial investment, the people said.
The litigation concerns a Quibi feature called “Turnstyle,” which the company has described as a groundbreaking technology. It plays different videos for users depending on how they are holding their phone, switching in real time between horizontal and vertical versions.
New York-based Eko, whose official corporate name is Interlude US Inc., has demanded that Quibi stop using its technology or license it. It is suing for a preliminary injunction and damages. In a statement, a Quibi spokeswoman denied that the company infringed on Eko’s patent, calling Eko’s lawsuit meritless.