Quibi-Jeffrey Katzenberg’s short-lived, short-form premium video startup প্রায় closed its doors almost a year ago. But it has survived as a holding company due to a legal battle with the interactive-video firm Echo, which has been accused of stealing commercial privacy and infringing on Echo patents.
Now the companies are lagging behind: Echo and QBI Holdings LLC have announced that they have agreed to dismiss all their legal claims against each other.
Under the terms of the settlement, QBI Holdings (formed after Qibi programming assets were sold to Roku and the Qibi app was discontinued) will transfer intellectual property and technology to Eco, a turnstile mobile-video viewing feature. Turnstile was at the center of the controversy.
The financial terms of the settlement are not being disclosed.
“We are pleased with the outcome of this case, and are proud of the independently contributed content presentation technology,” said Katzenberg, founder and chairman of QUIBI.
Echo founder and CEO Yoni Bloch commented, “These results will help ensure that Echo remains the undisputed leader in interactive storytelling technology.”
According to the companies, “the parties will not comment further on the lawsuit or their solution.”
In March 2020, less than a month before the unfortunate launch of Quibee’s mobile subscription service, Echo sued Turbile against Quiby, using appropriate modes to determine the direction (horizontal or vertical) of the viewer’s phone and display the content. Echo sought more than মিল 100 million in damages from Quibi.
In December 2020, a judge found “sufficient” circumstantial evidence that three former Snap employees যারা who had received NDA briefings from Echo Bloch on his company’s interactive-video technology before joining Quibi জড় were involved in trade confidential theft, as Echo alleged. But the court rejected Echo’s request to confiscate Quebec’s assets because “Echo did not show that it was more likely to fail.” [patent] Claim of violation. ”
The Echo lawsuit against Quibi was funded by activist hedge fund Elliott Management, which bought minority equity shares in the company last year.
The legal battle takes a personal turn: while filing a lawsuit, Quibi suggested that Elliott founder and co-founder Paul Singer was supporting the Echo lawsuit because his girlfriend’s son works for the company. “Although media coverage has suggested that Elliott has brought gravity and rigorous analysis to his case, Elliott’s motivation for being involved in the case seems to be personal,” Quibe said in a February 2021 filing. In response, Elliott’s General Counsel Richard Jabel said, “The irrelevance of Quibe’s focus on personal matters to present a false narrative about Elliott’s role in this matter shows his reluctance to be directly involved in the real underlying legal issues. Elliott has decided to finance this case Let’s say that Echo will win his claim that Quibi has stolen his valuable intellectual property.
In addition to Elliott Management, Eco’s shareholders include Walmart, which has invested $ 250 million in the company as part of a content-development deal.