International broadcaster ESPN and parent company Disney are facing a major legal challenge after California-based tech start-up SportsBubble filed a lawsuit accusing the media giants of misappropriating trade secrets to launch a rival product.
The case, filed in the Southern District of New York, centers on SportsBubble’s flagship product WhatSports — a platform designed to help fans find live sports streaming options and connect directly to broadcasters. Founded in 2021 by Lydia Murphy-Stephans, a former ABC Sports programming executive, the app emerged at a time when fragmented streaming rights left viewers unsure where to watch live games.
The Allegations
According to the complaint, ESPN entered partnership discussions with SportsBubble, signed a non-disclosure agreement (NDA), and gained access to confidential trade and business information. SportsBubble claims that instead of finalizing the deal, ESPN used this access to develop its own version of the service — the “Where to Watch” feature, which launched in 2023.
Murphy-Stephans stated:
“While under NDA to evaluate WatchSports for a business partnership, ESPN publicly announced a copycat product as if we didn’t exist. We firmly believe the ‘Where to Watch’ programming guide is the same product we presented to them.”
SportsBubble is seeking at least $200 million in compensatory damages, citing lost investments, abandoned league partnerships, and business disruption caused by ESPN’s alleged actions.
Business Impact
The lawsuit highlights a key moment in the sports-tech ecosystem, where innovation around streaming aggregation has become increasingly valuable. SportsBubble claims it lost a $25 million investment prospect and potential league tie-ups when ESPN shifted focus to its in-house product.
The company is also demanding:
- All profits Disney and ESPN have earned through “Where to Watch”
- Compensation for lost growth opportunities
- Recognition of alleged NDA violations and misuse of confidential data
What ESPN Accessed
Court filings detail that ESPN requested and received access to:
- Proprietary technology and internal architecture of the WatchSports app
- Geolocation and event management systems
- Methods for API integration with streaming services
- Results from beta testing, planned features, and pricing strategies
SportsBubble argues that this information directly enabled ESPN to fast-track its rival platform.
Legal Stakes
The complaint accuses ESPN and Disney of violating the Federal Defend Trade Secrets Act, breaching state trade secrets laws, and breaking contractual obligations under the NDA. Additional claims include unjust enrichment and fraudulent concealment.
ESPN and Disney have not yet commented on the lawsuit but are expected to file responses in the coming weeks.
Strategic Takeaway
This dispute underscores the high-stakes nature of intellectual property in sports media, where aggregators, streaming platforms, and broadcasters are competing to control fan access. For start-ups, it’s a cautionary tale of balancing growth opportunities with the risks of partnering with established players.
For ESPN and Disney, the case poses reputational and financial implications at a time when both are seeking to redefine their digital strategies in an evolving streaming landscape.
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