In a high-stakes legal battle filed last week in the Southern District of New York, Oakland-based tech startup SportsBubble has accused media giants ESPN and Disney of stealing its proprietary technology to launch a rival product, Where to Watch. The lawsuit, SportsBubble v. Walt Disney Company et al., alleges that ESPN engaged in deceptive negotiations to pilfer trade secrets from SportsBubble’s flagship app, WatchSports, a pioneering live sports streaming guide according to Sportico. The case, which seeks at least $200 million in compensatory damages and all profits from Where to Watch, underscores the growing tensions between tech innovators and established media companies navigating the shift from cable to streaming.
SportsBubble, founded in 2018 by former U.S. Olympic speed skater and sports broadcasting executive Lydia Murphy-Stephans, launched WatchSports in 2021. Billed as a “first-of-its-kind” app, WatchSports helps sports fans navigate the fragmented streaming landscape by aggregating viewing options for live sports events. For example, a user seeking to watch an NFL game might be directed to subscribe to Fubo or NFL+ to view it on NBC. The app generates revenue through affiliate marketing partnerships, earning referral fees from streaming platforms and event stakeholders.
According to the complaint, authored by attorneys Neal Brickman and James H. Neale, ESPN approached SportsBubble in 2021, expressing interest in a partnership. The companies signed a nondisclosure agreement (NDA) to facilitate discussions, during which SportsBubble shared sensitive details about WatchSports, including its internal architecture, geolocation functionality, API integration methods, beta testing results, planned features, and pricing strategies. These materials, SportsBubble asserts, constituted trade secrets—confidential information providing a competitive edge and protected by extensive security measures.
By February 2022, the parties had reportedly agreed in principle to an affiliate marketing deal that would integrate ESPN+ content into WatchSports. However, ESPN allegedly delayed delivering its API, citing technical difficulties. SportsBubble claims it offered assistance, but ESPN deflected, assuring the startup that the partnership was on track. The complaint alleges these assurances were a ruse to “run out the clock” while ESPN developed Where to Watch, a product SportsBubble calls a “copycat” of its app.
The launch of Where to Watch in March 2023 proved devastating for SportsBubble. A lead investor, who had valued the company at $25 million, withdrew support, citing ESPN’s competing product. Other sports stakeholders also hesitated to partner with SportsBubble, wary of competing with a media titan like ESPN. The startup claims it lost significant market traction and accuses ESPN of violating the Federal Defend Trade Secrets Act, breaching the NDA, unjust enrichment, and fraudulent concealment.
This lawsuit highlights the risks of collaboration in the rapidly evolving media and tech landscape, where companies increasingly share proprietary information to forge partnerships. As streaming continues to reshape how consumers access content, disputes like this may become more common, testing the boundaries of trade secret law and corporate ethics.
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