Peloton and iFIT — the maker of NordicTrack — have settled their legal disputes against one another over alleged patent infringement.
The settlement of all pending litigation marks the end of a checkered history between Peloton and iFIT.
In May 2020, Peloton sued iFIT — previously known as Icon Health and Fitness — claiming the company copied two patents for connected fitness programs. Five months later, iFIT sued Peloton for allegedly stealing patents for the company’s latest stationary bike model.
In November 2021, Peloton filed an additional lawsuit against iFIT and fellow industry rival Echelon over alleged patent infringement related to the company’s on-demand fitness classes.
As part of the settlement, Peloton and iFIT will be required to make a few changes.
- Peloton will license some iFIT patents that deal with remote-control technology.
- iFIT is required to remove select on-demand leaderboard technology from its products.
In February, iFIT secured $355 million in funding. The raise valued iFIT at less than $3 billion, down from a $7 billion-plus valuation in October 2020.
Peloton Downward Cycle
Peloton generated $964.3 million in revenue in fiscal Q3, a 24% decrease year-over-year. The company also reported a net loss of $757.1 million during the quarter, a significant jump from an $8.6 million loss in Q3 2021. Earlier this month, Peloton signed an agreement with JPMorgan and Goldman Sachs to borrow $750 million in five-year term debt to combat the losses.
