 Bloomberg -- Quibi, the video-streaming service started by former Walt Disney studio head and DreamWorks co-founder Jeffrey Katzenberg, must defend a lawsuit claiming it stole its signature turnstyle technology from an Israeli company.A federal judge in Los Angeles on Tuesday denied Quibis request to dismiss the lawsuit brought by Eko, which claims it showed its proprietary rotation technology to Katzenberg as early as 2017 and to Quibi executives in later meetings.The Wall Street Journal reported in May that Elliott Management Corp. is financing Ekos lawsuit. As part of the financing, the hedge fund manager would end up with a stake in Eko, the newspaper said, citing unidentified people familiar with the situation.The feature at issue allows viewers to switch seamlessly between a full-screen landscape version of a scene and full-screen portrait version on their mobile phone.U.S. District Judge Christina Snyder refused to toss out Ekos trade-secret misappropriation and patent-infringement claims, although she did dismiss breach-of-contract and unfair competition allegations. Earlier this month, she denied Ekos bid to block Quibis use of the technology while the question of who owns it is litigated.The judge also rebuffed Ekos request to throw out Quibis separate, earlier lawsuit seeking a ruling that it wasnt infringing Ekos patent.Quibi said its gratified by the decision. The ruling, along with the judges denial of a preliminary injunction, shows the case has no merit, a company spokesperson said.Eko is the brainchild of Israeli rockstar Yoni Bloch to create interactive videos. Eko said it was pleased the judge found that its key claims state valid causes of action and that it plans to refile pleadings pertaining to the remaining three claims.How an Israeli Rock Star Got Bob Dylan and Silicon Valley to Dig His Tech StartupQuibi, which is run by former EBay Chief Executive Officer Meg Whitman, launched in April.The cases are Quibi Holdings v. Interlude U.S., 20-cv-2250, and JBF Interlude 2009 Ltd.-Israel v. Quibi Holdings, 20-cv-2299, U.S. District Court, Central District of California Los Angeles.Updates with Ekos statement in eighth paragraph.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.2020 Bloomberg L.P. 