NEW YORK - Peloton Interactive and Flywheel Sports have settled a lawsuit of alleged technology theft. The financial terms of Peloton's settlement with Flywheel weren't disclosed, according to the Wall Street Journal.
Both companies make and sell stationary exercise bikes that stream live and on-demand classes to riders.
As part of the settlement, Flywheel admitted that it copied Peloton's so-called leaderboard technology for its home bike. Flywheel agreed to drop its version of the leaderboard and to stop challenging the validity of Peloton's patents.
Flywheel will recognize Peloton's patents and will pull the technology from its bikes within 60 days, according to a statement obtained by the Journal.
Peloton said that hefty spending and years of development helped create its technology. The company agreed to dismiss the lawsuit it filed against Flywheel in 2018.
Peloton, which has more than 500,000 active users, on Wednesday reported a loss of $55.4 million, or 20 cents per share, in its fiscal second quarter. The company posted revenue of $466.3 million in the period, which beat Wall Street forecasts.
With FOX 5 NY Staff and AP reports; read more at FoxBusiness.com
The touchscreen on a Peloton exercise bike displays a table of class participants and their workout metrics. (Courtesy of Peloton Interactive Inc.)