Activist investor hedge fund reportedly financing Eko lawsuit against Quibi over Turnstyle feature

Illustration by Alex Castro / The Verge

Hedge fund Elliott Management Corp. is financing Eko’s patent lawsuit against streaming service Quibi, The Wall Street Journal reports. Eko’s suit claims that Quibi stole trade secrets and that its “Turnstyle” feature violates Eko’s patents. Turnstyle allows Quibi videos to play differently depending on the orientation —vertical or horizontal— of the viewer’s phone, switching in real time.

Eko wants Quibi to stop using its technology or license it and is suing for a preliminary injunction and damages. As part of the financing arrangement, Elliott would get an equity stake in Eko, according to the WSJ, though it’s not clear how much money is involved.

Quibi, the mobile video app that launched last month, raised nearly $2 billion to…

Continue reading…