Tech Rivals Jawbone and Fitbit Clash in Antitrust Suits

technewstoday.com

Fitness tracker competitors Jawbone and Fitbit, Inc. have been engaged in a series of escalating legal battles since May 2015. In its latest legal salvo filed on October 30, 2015, Jawbone alleges that Fitbit has filed a series of meritless legal actions, has stolen Jawbone’s trade secrets and has poached its employees. Jawbone insists that Fitbit’s actions are all in an effort to maintain an illegal monopoly over the fitness tracker industry. Fitbit, the clear leader in the industry, currently holds an 85% market share and reports quarterly earnings of $409 million.

The tangled web of suits between the two companies began when Jawbone filed three lawsuits against Fitbit last spring. The first of these suits, filed in San Francisco Superior Court, alleged that Fitbit appropriated Jawbone’s trade secrets. The second, filed in the Northern District of California, alleged patent infringement and the third, filed with the U.S. International Trade Commission, sought a trade ban for Fitbit imports.

Fitbit responded in kind in September 2015, initially by filing a lawsuit in Delaware federal court, accusing Jawbone of patent infringement, and then by filing a similar action in the Northern District of California alleging infringement of three separate patents.

Despite being the instigator, Jawbone’s most recent action contends that Fitbit’s decision to file suits in two distant jurisdictions constitutes harassment, and seeks treble damages and declaratory relief.

Counsel Financial provides working capital credit lines up to $5 million exclusively for the plaintiffs' bar in all states except California, where credit lines are issued by California Attorney Lending. Explore all of our financial solutions designed for contingent fee practice.