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Peloton Wins Round in Suit Filed by NordicTrack Maker Icon

Peloton won a round in a federal court suit by NordicTrack's parent, which sought to prohibit U.S. sales of Peloton’s Bike+ with Auto-Follow.
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Peloton Interactive  (PTON) - Get Peloton Interactive Inc. Report Monday won a round in a lawsuit filed against it in October by closely held NordicTrack bike maker Icon Health & Fitness.

The suit sought to prohibit U.S. sales of Peloton’s Bike+ with Auto-Follow. 

The suit, filed in U.S. District Court in Delaware, claimed the bike infringed an Icon patent for a swiveling touchscreen and the ability to automatically switch resistance levels during classes.

Icon charged that it was issued a patent for the Auto-Follow resistance level feature in 2007 and a second one last year that allows for a seamless mix of aerobic and anaerobic exercise.

But the ruling from Judge Richard Andrews said “Icon has failed to demonstrate a likelihood of success on the merits or irreparable harm.” 

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The two companies have been engaged in legal tussles for months.

In November, Peloton filed a complaint under seal in the Wilmington federal court alleging Icon stole trade secrets.

Peloton filed the complaint "based on Icon's fraudulent campaign to improperly acquire Peloton's trade secret advertising plans by soliciting the disclosures" from its advertising agency, according to Peloton's request for permission to file under seal, Bloomberg reported.

Peloton sued Icon in May, claiming that the company copied its patented feature for making prerecorded online classes seem live.

Peloton said at the time that Icon “attempted to free ride off Peloton’s innovative technology.” Icon had previously sued Peloton when its first bike was launched and again when Peloton launched its first treadmill.

Peloton shares at last check were 7.8% lower at $128.80. The stock has doubled over the past year amid demand from people stuck at home and unable to go to gyms because of the pandemic.