An import restriction and a cease-and-desist order have been implemented by the U.S. International Trade Commission (ITC) against new sales on Peloton and iFit.
After a trade judge found that the two businesses violated Dish's streaming patents, the ITC announced the ban today.
This Is Not The First Time The Companies Encountered This Type Of Issue
It can be remembered that in 2021, Peloton, iFit, and Lululemon were initially sued by Dish and its subsidiary Sling TV.
The four in question pertain to how the Hopper set-top box from Dish alters a stream's bitrate in real time to enhance video quality.
In a related complaint submitted at the same time, the ITC requested that Lululemon's Mirror and the NordicTrack equipment sold by Peloton and iFit be banned.
Peloton, on the other hand, does not seem to be bothered by the prohibition since it reduced its wholly outsourced manufacturing during the previous year as part of restructuring efforts after overestimating demand in the wake of the pandemic.
More crucially, The Verge writes, the business claims that it is simple to avoid selling computers that use the prohibited technology.
"There will be no impact on our members, current or future. We've already updated software on newly manufactured [products] and we'll be deploying new streaming technology on existing [products]," says Ben Boyd, Peloton's senior vice president of global communications.
Boyd compared the procedure to how businesses often deploy software updates for smartphones that include new technology.
However, unlike Peloton's management, iFIt did not immediately give a response regarding the matter when reached out to.
While Peloton's ability to import and sell new hardware devices, such as the Peloton Bike, Bike+, Tread, and Row, will be impacted by the import ban, Peloton members who already own a Peloton hardware item or use the app should not be affected.
In particular, an import prohibition should not interfere with current members' access to Peloton's regular content and classes or stop Peloton from developing new courses, Pelo Buddy reports.
However, this ruling only applies to imports into the United States, and it does not apply to Peloton's other operating countries, including Australia, Canada, the United Kingdom, Germany, and the United States.
Read More: Peloton To Pay A $19 Million Fine For Tread Plus Safety Issues
The Ban Should Not Take Place Immediately
A ban on Peloton and iFit will not go into effect right away because the administration of President Joe Biden has 60 days to evaluate it.
According to The Verge, although presidents typically do not get involved in these cases, it is possible that Biden will opt to overturn the ITC's judgment.
As an example, the Biden administration recently decided not to block a proposal to ban the import of the Apple Watch due to pending patent challenges over the device's ECG capability.
Peloton and iFit have the option to file an appeal after that review time has ended, which would prolong any suspension.
Boyd from Peloton also asserts that the company does not think it violated Dish's patents and that it is looking into its options, but he would not indicate whether Peloton would file an appeal.
"Our focus without question is on member experience, and there will be absolutely no disruption to the member experience," Boyd says.
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