November 27, 2019
The US fitness firm, founded in 2012, produces stationary bikes and treadmills that connect to virtual workout classes via a touchscreen on the equipment. The NMPA alleges that Peloton’s workout videos contain over 2,000 unlicensed songs, which are controlled by the plaintiffs. The amendment, whereby the plaintiff increased its damages claim to USD $300 million, is a result of the initial discovery process through which the plaintiff became aware of the full scope of the alleged infringement by Peloton.
Peloton went public in late September 2019, but ended its first day of trading down eleven percent from its IPO price. As reported by Billboard, the biggest risk to growth that Peloton identified in its IPO filing was its ability to obtain music licenses.
Authors: Sam Galway and Matt McDonald