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Neel Chatterjee Goodwin Procter LLP

goodwinlaw.com
+1 650 752 3100

January 28, 2020

VIA FEDERAL EXPRESS

Jeffrey Katzenberg and Meg Whitman

Re: Eko’s Video Streaming Technology and Intellectual Property Rights and Quibi’s
Turnstyle Feature

Dear Mr. Katzenberg and Ms. Whitman:

We represent Interlude (dba Eko). I am writing today to express Eko’s grave concerns about
Quibi’s unauthorized use of Eko’s valuable commercial technology. This letter demands that Quibi
immediately stop the use of its Turnstyle technology or enter into a business resolution of this matter.
Eko would like a response by the close of business on February 1, 2020.

Eko has taken great measures to protect its innovation, including through the development of a
comprehensive portfolio of patents. For example, the ’765 Patent, a copy of which is enclosed for your
reference, describes methods and systems for seamlessly transitioning among different videos based
on changes in the media player size, resolution, and/or orientation. Eko also takes substantial efforts to
protect its trade secrets and confidential information. For example, it stores its code on password-
protected servers. Among other things, Eko only shares its confidential information under non-
disclosure agreements, and its employees all enter into non-disclosure agreements as a condition of
their employment.

We recently had occasion to review Quibi’s keynote at CES. Frankly, Eko was stunned with
what it saw. The Turnstyle technology, which was the centerpiece of the entire presentation, was the
precise proprietary technology that Eko had shared with Quibi executives several months ago and with
Quibi engineers who had access to Eko’s source code and proprietary information subject to an NDA
when they worked for a prior employer.

The facts here are straightforward:

• Eko has spent tens of millions of dollars and thousands of man-hours to develop
groundbreaking technology related to seamless horizontal to vertical switching technology
for mobile devices.

• The Eko product team began discussions with CJ Smith at Snapchat in July of 2015
regarding the distribution of interactive videos on the Snapchat platform using Eko’s
technology. Eko entered into a non-disclosure agreement with Snapchat associated with
these discussions.

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Jeffrey Katzenberg and Meg Whitman

• These discussions continued through 2017, when Dan Szeto of Snapchat expressed great
interest in Eko’s platform technology, leading to further discussions related to integration of
Eko’s technology into the Snapchat platform.

• Eko team members met with you in March of 2017, at which time you (on behalf of Quibi)
expressed strong interest in Eko’s technology and participating in Eko’s next round of
financing.

• In 2018, Eko shared with Mr. Smith and Mr. Szeto (then at Snapchat) confidential
information and trade secrets, including proprietary source code implementing the seamless
horizontal to vertical switching technology.

• Subsequently, in late 2018, numerous Snapchat employees, including Mr. Smith, Mr. Szeto,
Joseph Burfitt, and Tom Conrad left Snapchat and joined Quibi.

• As of February 2019, Quibi claimed it had not yet begun to develop any seamless horizontal
to vertical switching technology. A month later, in March 2019, Eko again met with Quibi to
demonstrate its horizontal to vertical streaming technology

• Then, in January 2020, Quibi announced Turnstyle at CES and made Turnstyle the
centerpiece of its CES keynote.

Quibi appears to make use of the very technology disclosed in Eko’s patent portfolio.
Specifically, the ’765 patent describes simultaneously receiving two video presentations, playing the
first video based on properties of a playback device, providing a mapping of media player height and
width ranges, determining that a playback window has changed dimensions (e.g., from vertical to
horizontal), and, using the mapping, seamlessly transitioning from the first video to the second video.
The properties can include, for example, physical orientation, physical screen size, screen resolution,
and/or window size of the device; the second video may include, for example, different video or audio
content, different dimensional ratios, and/or different video quality; and the transition from the first video
to the second may include changing the position, the shape, and/or the size of a viewing region. These
and other concepts from the ’765 patent are clearly present in the Turnstyle feature. You can imagine
our surprise when we learned that Quibi claimed to have “invented a new experience and technology
that we call Turnstyle” that allows users to “move at will between full screen portrait and full screen
landscape” that “required engineering breakthroughs in technology and user experience.”1

1
https://www.youtube.com/watch?v=LXOG9yNRjxk

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Jeffrey Katzenberg and Meg Whitman

As one example of how the Turnstyle functionality appears to use the concepts and technology
of the ’765 patent, below are screen captures from a recent demonstration of the Turnstyle feature,
paired with a tweet which appears to be from Quibi’s Twitter account, and images from the ’765 patent.

Quibi Turnstyle Demonstration

Figure 2 from the ’765 Patent

Given the shortness of time that it took Quibi to launch this technology and the extraordinary
similarity between the two technologies, we can think of no credible explanation other than Quibi’s
unauthorized use of Eko’s technology.

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Jeffrey Katzenberg and Meg Whitman

Eko takes this apparent theft seriously. To ensure Eko’s technology remains protected, we ask
that Quibi:

• Confirm that it will honor any confidentiality obligations it has to Eko;

• Remind its employees hired from Snapchat of the confidentiality obligations they agreed to
while at Snapchat and provide written confirmation that they will comply with those
confidentiality obligations;

• Identify all prophylactic measures taken at Quibi to ensure Eko’s confidential information
was not shared or used in the development of Turnstyle;

• Identify any individuals that were aware of Eko and its technology that contributed to the
Turnstyle technology; and

• Confirm that Quibi is not in possession of any source code, applications, players, or other
technology from Eko.

Eko continues to be interested in pursuing a strategic partnership with Quibi that would be
beneficial and lucrative to both companies. Eko is prepared to discuss a strategic partnership but,
should Quibi not be interested in such a strategic partnership, Eko demands that Quibi immediately
cease and desist from further unauthorized use of Eko’s technology.

Please respond to this letter no later than February 1, 2020.

Very truly yours,

Neel Chatterjee

cc: Yoni Bloch

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