A tech startup called SportsBubble has sued ESPN and its parent company Disney for stealing trade secrets to build a rival app. The lawsuit, filed last week in a New York federal court, claims ESPN used fake partnership talks to copy ideas for its Where to Watch feature, launched in 2024.
Details of the Accusation
SportsBubble launched its WatchSports app in 2021. This tool helps fans find where to stream live games across various services. The company says it shared secret details with ESPN under a nondisclosure agreement during talks that started in 2021.
Those discussions seemed promising at first. SportsBubble believed they had a deal in principle for an affiliate partnership. This would let users link from WatchSports to ESPN content. But the startup now argues ESPN dragged out the process to grab ideas without committing.
The complaint points to ESPN’s Where to Watch as a direct copy. This feature rolled out in August 2024 on ESPN’s app and website. It guides users to streaming options for sports events, much like WatchSports does.
SportsBubble seeks at least $200 million in damages. Some reports suggest the total could climb higher, up to $600 million, based on lost profits and harm to the business.
Background on SportsBubble and Its Founder
Lydia Murphy-Stephans founded SportsBubble in 2018. She brings deep experience from the sports world. Murphy-Stephans competed as a speed skater in the 1984 Olympics for the United States.
Her career includes top roles in broadcasting. She served as president of Pac-12 Networks and executive vice president at MSG Networks. She also worked as vice president for ABC Sports.
Under her leadership, SportsBubble created WatchSports as a free app for fans. It earns money through referral fees from partners like streaming services. The app solves a common problem in the streaming age, where games spread across platforms like NFL+, Fubo, and ESPN+.
Here are key features of WatchSports that the lawsuit highlights:
- Aggregates live sports streaming options in one place.
- Provides direct links to watch games on various services.
- Updates in real time for event schedules and availability.
ESPN’s Side and Broader Implications
ESPN has not commented publicly on the lawsuit yet. The company might argue that Where to Watch came from its own ideas. Defenses could include claims that the tech is not unique or that no secrets were misused.
This case ties into bigger trends in sports media. Streaming has changed how fans watch games. Companies like Disney, which owns ESPN, partner with tech firms to stay ahead. But these deals can lead to disputes over ideas and data.
Recent events show similar tensions. For example, in 2024, Fox, Disney, and Warner Bros. Discovery announced a joint sports streaming service. This move highlights the push to bundle content and make it easier for viewers.
The lawsuit could affect future partnerships. Tech startups might demand stronger protections before sharing info. It also raises questions about fair play in a competitive industry.
Potential Outcomes and Damages
SportsBubble claims real harm from ESPN’s actions. The startup says fake interest hurt its talks with other partners. One investor backed out after ESPN announced Where to Watch in 2023, costing a $25 million funding round.
If the court sides with SportsBubble, ESPN could face big payouts. The complaint asks for all profits from Where to Watch plus other remedies.
To break down the claimed damages:
| Category | Estimated Amount | Description |
|---|---|---|
| Compensatory Damages | At least $200 million | Covers lost revenue and business harm |
| Profits from Where to Watch | Undisclosed | All earnings ESPN made from the feature |
| Punitive Damages | Up to $600 million total | If malice is proven, to punish wrongdoing |
| Injunctive Relief | N/A | Possible order to stop using the tech |
Experts say trade secret cases often settle out of court. Trials can expose sensitive info, which both sides might want to avoid.
This lawsuit comes amid other legal battles for Disney. In 2025, the company dealt with antitrust concerns over its streaming ventures. These issues add pressure as ESPN adapts to cord-cutting trends.
What This Means for Sports Fans
For everyday viewers, this dispute spotlights a real need. Finding games has grown harder with rights split among streamers. Tools like WatchSports and Where to Watch aim to fix that.
Fans might see more innovation if companies play fair. But lawsuits could slow progress if trust breaks down.
In the end, this case tests how media giants handle new ideas from smaller players. It could set rules for the streaming era.
What do you think about this lawsuit? Share your thoughts in the comments and pass this article along to fellow sports fans.
