Billionaire Buzzfeed News says that it will “enter” his IP, and build their own boards.
Frederic J. Brown / AFP / Getty Images
Less than three months after the agreement to acquire an exclusive license to a patent hoverboard and vowing to sue the violators, billionaire businessman Mark Cuban said his deal with the patent holder is turned off, and that it will instead make its own device.
“We went out with our own board, we feel respect for the necessary IP, and introduces our own,” Cuban wrote in an e-mail Buzzfeed News.
In August, Cuba signed a letter of intent to acquire the exclusive rights to patents held by Shane Chen, inventor Hovertrax. At that time, the Cuban openly joined the legal battle surrounding the board, which promises to be one of the hottest items this holiday season. As BuzzFeed News wrote in September, in the story about the lawsuit against Chen John Soibatian, President of IO Hawk, which sells hoverboards with the same name.
“[Cuban] has assumed the mantle of a lawsuit Chen against Soibatian, with whom he traded barbs in social media. After opening the account IO Hawk Twitter posted a photo of one of the Dallas Mavericks poses with Soibatian and holding new board, Cuba replied:” I just to see you in court. We’ll let the judge decide. #payme “”
Cuba also announced plans to Wal-Mart, to start selling hoverboards, that “they are in for a nightmare.”
Cuba will not go into specifics about the split with Chen. But in September, Chen went to China to meet with representatives of Chic, the Chinese manufacturer that makes the IO Hawk.
“With Chic meeting went well,” Chen wrote Buzzfeed News at the time. “They are willing to pay me a royalty for each they sell.”
Schick could not confirm that the deal with Chen was signed in mid-October, and did not immediately respond to a request for comment.
At the same time, for a few weeks, as the Cubans announced its entry into the market hoverboard, reports of accidents and fires caused by self-balancing two-wheeled scooters have proliferated. Cuban cited these concerns in his e-mail BuzzFeed.
“We believe that safety is a huge issue and try to make it a one size fits all consumers dangerous,” says Cuban. “So we went our own way.”
Shane Chen did not immediately respond to a request for comment.