Peloton hit with $20.5 million jury verdict over NEC streaming patent infringement

Context: In July 2022, Japan’s NEC Corporation sued fitness equipment maker Peloton in the United States District Court for the District of Delaware over the alleged infringement of three of its patents related to distributing digital media to multiple devices. The complaint (in full below box) asserted that Peloton’s “Peloton Bikes” and “Peloton Treads” use its “Peloton App” to offer content streaming services that infringe those patents. Peloton clamped back in both district court by arguing that the patents were invalid, as well as by filing inter partes review (IPR) requests with the United States Patent and Trademark Office’s (USPTO’s) Patent Trial and Appeal Board (PTAB). The IPR was successful for one of the patents-in-suit, while another of the asserted patents was dismissed over non-infringement ahead of the jury trial. A hearing was then held from July 27 to July 31, 2026.

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Counsel

Peloton is being represented by Covington and Burling’s Robert Haslam, Richard Rainey, Philip Irwin, Derek J. Andros, Allen Cross, Anupam Sharma, Ashley Winkler, Benjamin J. Razi, Elaine H. Nguyen, Jared Frisch, and Jessie Y. Chang, as well as Morris, Nichols, Arsht & Tunnell LLP’s Karen Jacobs, Cameron Paul Clark, and Michael J. Flynn, and Shaw Keller’s Karen Elizabeth Keller

Meanwhile, ⁠NEC is being represented by a team at Baker Botts: ​Robert Maier, Jennifer Tempesta, ​Michael Knierim, Thomas Natsume, and Lance Goodman, as well as Kenneth Laurence Dorsney and Cortlan S. Hitch of Morris James LLP.