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        <title><![CDATA[Quibi rival demands asset freeze in patent-infringement claim]]></title>
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            <media:title type="html">Quibi rival demands asset freeze in patent-infringement claim</media:title>
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						<p>Eko &#8212; a tech startup that has accused Jeffrey Katzenberg&#8217;s ill-fated video-streaming app Quibi of infringing on its patented technology &#8212; is asking the court to freeze Quibi&#8217;s assets as it winds down its business.</p>
<p>Quibi, which is <strong>shutting down just six months after its launch</strong>, said last week that it would sell its assets and pay off deep-pocketed investors. But Eko asked a federal district court judge in California to set aside at least $101.9 million and for bank accounts and other assets connected to the technology to be frozen, according to court papers filed this week.</p>
<p>Eko&#8217;s lawsuit, <strong>financed by billionaire Paul Singer&#8217;s hedge fund Elliot Managemen</strong>t, concerns a Quibi feature called &#8220;turnstyle,&#8221; which allows users to play&nbsp;different videos depending on how they are holding their phone — vertically or horizontally. The video switches in real time between the horizontal and vertical versions.</p>
<p>Quibi has denied infringing on Eko’s patents or misappropriating trade secrets and has called the lawsuit &#8220;meritless,&#8221; despite <strong>hiring a private investigator to dig up dirt</strong> on Eko&#8217;s founder Yoni Bloch as well as Singer.</p>
<p>Founded by Hollywood mogul Katzenberg and run by former Hewlett Packard CEO Meg Whitman, Quibi was designed for watching short-form videos on mobile phones while on-the-go. The duo enlisted celebrities like Jennifer Lopez, Chrissy Teigen, Kevin Hart and LeBron James to star in Quibi shows, but customers did not take to the service.</p>
<p><strong>Katzenberg blamed Quibi&#8217;s April 6 launch </strong>— in the middle of the pandemic, a time when no one was on-the-go — as central to why the venture failed.</p>
<p>After the shutdown announcement, Eko was looking for assurances from Quibi that the business wouldn’t sell off the turnstyle tech and would retain cash to cover a payout if Eko won the legal battle.</p>
<p>“This is just another attempt by Eko to abuse the legal system. Quibi’s announcement that it is beginning an orderly wind-down changes nothing with respect to the litigation,&#8221; Quibi said in a statement. &#8220;We strongly believe the law and facts are on our side and we will continue to vigorously defend against this meritless lawsuit.”</p>
<p>Eko, which creates video that viewers can interact with, hired economist, Richard J. Eichmann, to provide a valuation of what Eko is owed. In a declaration filed in court, he said Quibi should reserve at least $96.5 million&nbsp;to account for the nonexclusive use “of the allegedly stolen intellectual property at issue in this case.”</p>
<p>The remainder of the $101.9 million Eko is asking to be set aside is meant to cover legal fees and potential interest, the company said.</p>
			
					
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