Sports technology startup SportsBubble has initiated legal proceedings against The Walt Disney Company and its subsidiary ESPN, alleging misappropriation of trade secrets. The lawsuit, filed on August 14, 2025, in the U.S. District Court for the Southern District of New York, contends that ESPN engaged in deceptive practices to gain access to proprietary information about SportsBubble’s WatchSports app, subsequently launching a similar product named “Where to Watch.”
According to the 61-page complaint, SportsBubble and ESPN engaged in discussions over several years regarding a potential affiliate marketing partnership. These negotiations involved SportsBubble sharing confidential details about WatchSports at ESPN’s request, under a non-disclosure agreement intended to protect the startup’s trade secrets. SportsBubble asserts that ESPN’s “Where to Watch,” introduced in August 2024, is a “virtual carbon copy” of their WatchSports app. The startup is seeking compensatory damages exceeding $200 million, along with punitive damages and profits derived from the alleged infringement. ([sportsbusinessjournal.com](https://www.sportsbusinessjournal.com/Articles/2025/08/14/sportsbubble-alleges-product-theft-in-lawsuit-against-espn-disney/?utm_source=openai))
Lydia Murphy-Stephans, former president of Pac-12 Networks and founder of SportsBubble, expressed her concerns, stating that despite presenting WatchSports to Disney CEO Bob Iger and ESPN executives, the company announced a similar product while under NDA. She emphasized the need to highlight Disney and ESPN’s engagement with innovators and entrepreneurs. ([sportsbusinessjournal.com](https://www.sportsbusinessjournal.com/Articles/2025/08/14/sportsbubble-alleges-product-theft-in-lawsuit-against-espn-disney/?utm_source=openai))
ESPN has declined to comment on the lawsuit.
This legal action adds to a series of recent challenges for Disney and ESPN. In November 2024, technology company Adeia filed a patent infringement lawsuit against Disney, alleging that streaming services Hulu, ESPN+, and Disney+ violated six of its patents related to video streaming technology. ([reuters.com](https://www.reuters.com/legal/litigation/disney-sued-by-adeia-over-hulu-espn-streaming-technology-2024-11-08/?utm_source=openai)) Additionally, in August 2024, a U.S. judge temporarily blocked the launch of Venu Sports—a joint streaming venture between Disney’s ESPN, Warner Bros., and Fox—following an antitrust lawsuit filed by FuboTV. ([ft.com](https://www.ft.com/content/4316c318-b4d8-4042-81fe-3800a071fd83?utm_source=openai))
These developments underscore the complex and competitive landscape of the sports streaming industry, where companies are increasingly vigilant in protecting their intellectual property and market positions.