Arena Group files lawsuit against ABG, Minute Media for theft of technology

The Arena Group has filed a lawsuit against ABG, who own the rights to Sports Illustrated, and against Minute Media, for theft of Arena’s technology. The company said, “The lawsuit highlights how ABG conspired to steal the crown jewel of Arena’s business – the proprietary code technology and trade secrets comprising the valuable internet platform Arena developed at a significant expense…The suit showcases that ABG enlisted business leaders from top tier investment firms – including CVC Capital Partners and BlackRock – to help steal proprietary technology and business from Arena, working with ABG’s new licensee, Minute, to orchestrate a multi-step corporate heist…Arena also notes that ABG has a history of monopolistic and predatory licensing behavior. The lawsuit highlights how Arena is ‘just the latest licensee to fall victim to ABG’s extensive and public history of strip-mining its license partners, imposing steep guaranteed royalties and termination fees that award ABG a windfall.’ Another company, 888 Holdings, was forced to terminate its unprofitable joint venture with ABG earlier this year, triggering an oppressive $50 million termination fee. Arena strongly believes that ABG’s theft and predatory practices, along with those of their accomplice Minute, who greatly benefited from Arena’s years of research, development, and implementation, will be made clear in a court of law.” Arena seeks $200 million in damages. The case is pending in federal court in the Southern District of New York.