Jawbone and Fitbit Inc (NYSE:FIT) are no longer fighting because the latter has dropped a patent violation complaint filed with the U.S. International Trade Commission. It was a Christmas miracle for Fitbit given that the two, who are Wearable device leaders, have been locked in a long-drawn-out legal encounter for well over a year. Fitbit has been seeking to ban the import of Jawbone’s fitness trackers into the US.
But in a new twist of event, Jawbone is also cited to have been undergoing financial woes, which are also speculated to be part of Fitbit’s reason of scrapping off the suit against its fellow fitness manufacturer. As a result of the financial miseries, Jawbone’s shares are figured out to be worth nothing to the point that the company is speculated either to have filed for bankruptcy or it is in default.
But the wearables market continues to be competitive despite Jawbone’s anguish
According to Fitbit, Jawbone is no longer worth the current market competition given that it did not make it into the top five rankings. The company has already stopped offering its fitness trackers on its website while Fitbit continues to hold onto the market leadership, which has accounted for around a quarter of all global shipments. It could perhaps be banking on the fact that the market has not had a new fitness tracker from the San Francisco for close to 12 months now.
The two have been trying to undo each other in their products. In a statement, Jawbone writes, “Jawbone believes this case–involving patents already found once to be invalid–should have been dismissed long ago by Fitbit. Fitbit’s pursuit of these baseless claims for so long was to burden Jawbone–an issue to be raised in Jawbone’s anti-trust claim against Fitbit.”
What next for Jawbone in spite of the end of this specific battle?
Unlike what the society would think, the latest development may not necessarily be a victory for Jawbone. Apparently, the company has also denied any form of bankruptcy filings and has also cited that it will carry on with its legal action against Fitbit for trade secret misappropriation. But besides all this, unconfirmed rumors suggest that Jawbone is seeking investment from an Asian company so as to enhance its operations for another year. Meanwhile, Fitbit’s stock closed at $7.29 a drop of $0.06 or 0.82%.
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