Peloton Defeats Bike+ Patent Infringement Lawsuit Brought by NordicTrack Maker

Icon had accused Peloton of cribbing its technology for on-the-fly resistance adjustments.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.

Peloton Interactive (NASDAQ:PTON) has emerged victorious from a legal fight with one of its rivals. On Monday, the exercise equipment and class specialist prevailed in a patent infringement lawsuit brought by Icon Health & Fitness, owners of the well-established NordicTrack line of exercise machines.

In a federal court in Delaware, Judge Richard Andrews found that in its suit, Icon “failed to demonstrate a likelihood of success on the merits or irreparable harm.”

Steven Feldman, a lawyer representing Peloton in the case, said he was pleased with the ruling. The company hasn’t made any official statement on it, nor has Icon. 

The focus of Icon’s complaint was Peloton’s Bike+, which was released last September. The following month, Icon brought its lawsuit, claiming that two features infringed on its patents: a swiveling user touchscreen and automatic resistance level adjustments during Peloton’s online classes.

In its filing for the lawsuit, Icon said that “Some companies, like Peloton, have built (at least in part) entire businesses on the back of Icon’s patented technology.”

This is not the only legal dispute between the two companies. Last May, Peloton brought a similar lawsuit against Icon, claiming that its rival infringed on its patent for the technology that makes its prerecorded classes seem like live events. That case will be heard before a jury in a trial scheduled to begin this October.

These cases illustrate just how high-stakes the market of home fitness has become. Peloton has done particularly well; demand for stay-in-place exercise solutions keeps rising due to the coronavirus pandemic.

Should you invest $1,000 in Peloton Interactive, Inc. right now?

Before you consider Peloton Interactive, Inc., you’ll want to hear this.

Investing legends and Motley Fool Co-founders David and Tom Gardner just revealed what they believe are the 10 best stocks for investors to buy right now… and Peloton Interactive, Inc. wasn’t one of them.

The online investing service they’ve run for nearly two decades, Motley Fool Stock Advisor, has beaten the stock market by over 4X.* And right now, they think there are 10 stocks that are better buys.

*Stock Advisor returns as of November 20, 2020

Article Source: https://www.fool.com/investing/2021/02/22/peloton-defeats-bike-patent-infringement-lawsuit-b/