Case 2:20-cv-02250-JAK-SK Document 1-2 Filed 03/09/20 Page 1 of 5 Page ID #:42
`Case 2:20-cv-02250-JAK-SK Document 1-2 Filed 03/09/20 Page 1 of 5 Page ID #:42
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`EXHIBIT B
`EXHIBIT B
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`Case 2:20-cv-02250-JAK-SK Document 1-2 Filed 03/09/20 Page 2 of 5 Page ID #:43
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`Neel Chatterjee
`+1 650 752 3256
`nchaterjee@goodwinlaw.com
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`Goodwin Procter LLP
`601 Marshall Street
`Redwood City, CA 94063
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`goodwinlaw.com
`+1 650 752 3100
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`January 28, 2020
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`VIA FEDERAL EXPRESS
`
`Jeffrey Katzenberg and Meg Whitman
`Quibi, Inc.
`6555 Barton Ave.
`Los Angeles, CA 90036
`Re:
`Eko’s Video Streaming Technology and Intellectual Property Rights and Quibi’s
`Turnstyle Feature
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`Dear Mr. Katzenberg and Ms. Whitman:
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`We represent Interlude (dba Eko). I am writing today to express Eko’s grave concerns about
`Quibi’s unauthorized use of Eko’s valuable commercial technology. This letter demands that Quibi
`immediately stop the use of its Turnstyle technology or enter into a business resolution of this matter.
`Eko would like a response by the close of business on February 1, 2020.
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`Eko has taken great measures to protect its innovation, including through the development of a
`comprehensive portfolio of patents. For example, the ’765 Patent, a copy of which is enclosed for your
`reference, describes methods and systems for seamlessly transitioning among different videos based
`on changes in the media player size, resolution, and/or orientation. Eko also takes substantial efforts to
`protect its trade secrets and confidential information. For example, it stores its code on password-
`protected servers. Among other things, Eko only shares its confidential information under non-
`disclosure agreements, and its employees all enter into non-disclosure agreements as a condition of
`their employment.
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`We recently had occasion to review Quibi’s keynote at CES. Frankly, Eko was stunned with
`what it saw. The Turnstyle technology, which was the centerpiece of the entire presentation, was the
`precise proprietary technology that Eko had shared with Quibi executives several months ago and with
`Quibi engineers who had access to Eko’s source code and proprietary information subject to an NDA
`when they worked for a prior employer.
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`The facts here are straightforward:
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`• Eko has spent tens of millions of dollars and thousands of man-hours to develop
`groundbreaking technology related to seamless horizontal to vertical switching technology
`for mobile devices.
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`• The Eko product team began discussions with CJ Smith at Snapchat in July of 2015
`regarding the distribution of interactive videos on the Snapchat platform using Eko’s
`technology. Eko entered into a non-disclosure agreement with Snapchat associated with
`these discussions.
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`ACTIVE/101954025.9
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`Case 2:20-cv-02250-JAK-SK Document 1-2 Filed 03/09/20 Page 3 of 5 Page ID #:44
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`Jeffrey Katzenberg and Meg Whitman
`January 28, 2020
`Page 2
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`• These discussions continued through 2017, when Dan Szeto of Snapchat expressed great
`interest in Eko’s platform technology, leading to further discussions related to integration of
`Eko’s technology into the Snapchat platform.
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`• Eko team members met with you in March of 2017, at which time you (on behalf of Quibi)
`expressed strong interest in Eko’s technology and participating in Eko’s next round of
`financing.
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`•
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`In 2018, Eko shared with Mr. Smith and Mr. Szeto (then at Snapchat) confidential
`information and trade secrets, including proprietary source code implementing the seamless
`horizontal to vertical switching technology.
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`• Subsequently, in late 2018, numerous Snapchat employees, including Mr. Smith, Mr. Szeto,
`Joseph Burfitt, and Tom Conrad left Snapchat and joined Quibi.
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`• As of February 2019, Quibi claimed it had not yet begun to develop any seamless horizontal
`to vertical switching technology. A month later, in March 2019, Eko again met with Quibi to
`demonstrate its horizontal to vertical streaming technology
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`• Then, in January 2020, Quibi announced Turnstyle at CES and made Turnstyle the
`centerpiece of its CES keynote.
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`Quibi appears to make use of the very technology disclosed in Eko’s patent portfolio.
`Specifically, the ’765 patent describes simultaneously receiving two video presentations, playing the
`first video based on properties of a playback device, providing a mapping of media player height and
`width ranges, determining that a playback window has changed dimensions (e.g., from vertical to
`horizontal), and, using the mapping, seamlessly transitioning from the first video to the second video.
`The properties can include, for example, physical orientation, physical screen size, screen resolution,
`and/or window size of the device; the second video may include, for example, different video or audio
`content, different dimensional ratios, and/or different video quality; and the transition from the first video
`to the second may include changing the position, the shape, and/or the size of a viewing region. These
`and other concepts from the ’765 patent are clearly present in the Turnstyle feature. You can imagine
`our surprise when we learned that Quibi claimed to have “invented a new experience and technology
`that we call Turnstyle” that allows users to “move at will between full screen portrait and full screen
`landscape” that “required engineering breakthroughs in technology and user experience.”1
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` 1
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` https://www.youtube.com/watch?v=LXOG9yNRjxk
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`ACTIVE/101954025.9
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`Case 2:20-cv-02250-JAK-SK Document 1-2 Filed 03/09/20 Page 4 of 5 Page ID #:45
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`Jeffrey Katzenberg and Meg Whitman
`January 28, 2020
`Page 3
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`As one example of how the Turnstyle functionality appears to use the concepts and technology
`of the ’765 patent, below are screen captures from a recent demonstration of the Turnstyle feature,
`paired with a tweet which appears to be from Quibi’s Twitter account, and images from the ’765 patent.
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`Quibi Turnstyle Demonstration
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`Figure 2 from the ’765 Patent
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`Given the shortness of time that it took Quibi to launch this technology and the extraordinary
`similarity between the two technologies, we can think of no credible explanation other than Quibi’s
`unauthorized use of Eko’s technology.
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`ACTIVE/101954025.9
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`Case 2:20-cv-02250-JAK-SK Document 1-2 Filed 03/09/20 Page 5 of 5 Page ID #:46
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`Jeffrey Katzenberg and Meg Whitman
`January 28, 2020
`Page 4
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`Eko takes this apparent theft seriously. To ensure Eko’s technology remains protected, we ask
`that Quibi:
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`• Confirm that it will honor any confidentiality obligations it has to Eko;
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`• Remind its employees hired from Snapchat of the confidentiality obligations they agreed to
`while at Snapchat and provide written confirmation that they will comply with those
`confidentiality obligations;
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`•
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`•
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`Identify all prophylactic measures taken at Quibi to ensure Eko’s confidential information
`was not shared or used in the development of Turnstyle;
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`Identify any individuals that were aware of Eko and its technology that contributed to the
`Turnstyle technology; and
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`• Confirm that Quibi is not in possession of any source code, applications, players, or other
`technology from Eko.
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`Eko continues to be interested in pursuing a strategic partnership with Quibi that would be
`beneficial and lucrative to both companies. Eko is prepared to discuss a strategic partnership but,
`should Quibi not be interested in such a strategic partnership, Eko demands that Quibi immediately
`cease and desist from further unauthorized use of Eko’s technology.
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`Please respond to this letter no later than February 1, 2020.
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`Very truly yours,
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`Neel Chatterjee
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`cc:
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`Yoni Bloch
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`ACTIVE/101954025.9
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