28 Feb 2020
Flywheel to shut down subscription service after settling Peloton lawsuit
BY Tom Walker
Indoor cycling brand Flywheel is to discontinue its Flywheel At Home subscription service after settling a legal case with rival Peloton.
A 2018 lawsuit by Peloton alleged that Flywheel had copied aspects of Peloton's technology to stream live and on-demand classes, as well as track riders' performances.
In a statement filed at the United States District Court in Texas – and dated 3 February 2020 – Jeffery Naumowitz, Flywheel's chief financial officer, admitted that Peloton's complaint was "valid".
"On September 12 2018, Peloton Interactive filed a complaint asserting patent-infringement claims against Flywheel," the statement reads.
"Peloton alleged that Flywheel's at-home exercise bike (the "Fly Anywhere Bike") infringes certain claims of the US Patent No. 9,174,085 and US Patent No. 9,233,276.
"On 24 July 2019, Peloton filed an amended complaint and added claims that the Fly Anywhere Bike also infringes US Patent No 9,861,855 and US Patent No. 10,322,315.
"Flywheel now admits that the Peloton Patents are valid and enforceable.
"Flywheel admits that Flywheel's Fly Anywhere Bike and associated services infringe the Peloton Patents as alleged by Peloton in the Second Amended Complaint and that Flywheel coped elements of the Peloton bike in developing its Fly Anywhere Bike.
"As such, and as part of the settlement resolving this dispute, Flywheel agrees that within 60 days it will stop infringing Peloton's patented technology."
In a separate statement, Flywheel said it would shut down its Flywheel At Home service on 27 March.
Following the news, Peloton has said that Flywheel owners will be able to get a free, refurbished Peloton if they trade in their old Flywheel by the same date.
Flywheel was launched in 2010 and offers indoor cycling-based HIIT cycling classes, in which riders compete against each other.
The group received funding in 2014 from the Benvolio Group, an investment arm of Lew Frankfort, and launched its at-home bike in November 2017.
It currently operates more than 40 studios across the US. The studio business was acquired by Town Sports International Holdings in January 2020.
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