Antitrust Law Daily Wrap Up, ANTITRUST NEWS: Jawbone nips Fitbit with monopolization counterclaim, (Nov 3, 2015)

By Greg Hammond, J.D.

Fitbit, Inc. monopolized and attempted to maintain its monopoly in the U.S. market for personal fitness trackers, according to counterclaims filed in the federal district court in San Jose, California. The counterclaims were submitted in response to Fitbit’s September 8, 2015, complaint for patent infringement against AliphCom, doing business as Jawbone, and BodyMedia, Inc. (Fitbit, Inc. v. AliphCom, Case No. 5:15-cv-04073-EJD).

Fitbit sells wearable devices that track sleep, activity, and other health and fitness data. The company’s complaint states that Jawbone and BodyMedia, Inc., which also sell activity trackers, have infringed three of Fitbit’s patents: U.S. Patent Nos. 9,048,923, 9,026,053, and 9,106,307.

Jawbone denied infringing any of the patents and brought an array of affirmative defenses and counterclaims. In particular, Jawbone asserts two affirmative defenses and three counterclaims for non-infringement and invalidity of the patents-in-suit. Further, Jawbone alleges that Fitbit has violated Section 2 of the Sherman Act by monopolizing and attempting to maintain its monopoly in the U.S. market for personal fitness trackers by: (1) encouraging Jawbone employees to leave and join Fitbit, bringing Jawbone’s confidential information with them; (2) knowingly accepting and utilizing Jawbone’s confidential information and trade secrets; (3) bringing patent infringement claims that have no reasonable basis; and (4) filing multiple lawsuits against Jawbone in different venues solely for the purpose of harassment.

As a result of Fitbit’s allegedly anticompetitive conduct, Jawbone seeks dismissal of the patent infringement claims; a declaration that Jawbone has not infringed any claim of the patents-in-suit; a declaration that all of the claims in the patents-in-suit are invalid; a declaration that Fitbit has engaged in unlawful monopolization; trebled damages; as well as costs and reasonable attorney fees.

Attorneys: Josh A. Krevitt (Gibson, Dunn & Crutcher LLP) for Fitbit, Inc. Kalpana Srinivasan (Susman Godfrey L.L.P.) for AliphCom and BodyMedia, Inc.

Companies: Fitbit, Inc.; AliphCom; BodyMedia, Inc.

News: Antitrust CaliforniaNews