Company founded by Kayla Itsines takes rival trainer to court over launch of fitness app
The Background
The fitness industry is no stranger to competition. However, when a former employee decides to launch a competing app, legal battles often ensue. This is precisely the case with South Australia’s multi-million dollar fitness trainer Kayla Itsines and her former employee, Cassandra Olholm.
Olholm, who plans to launch her own fitness app called “Train with Cass,” is facing a legal injunction filed by the company previously owned by Itsines, The Bikini Body Training Company. The court heard that Olholm’s contract includes a 12-month non-compete clause, which would prevent her from launching a rival app until February next year. However, she plans to introduce her app in just a matter of weeks.
The Bikini Body Training Company gained prominence with its Sweat app, which was sold for approximately $400 million in 2021 to a US fitness software company. Itsines and her business partner, Tobi Pearce, built an empire with their fitness programs and online presence, and Olholm’s app could potentially pose a threat to their market dominance.
The Legal Battle
In the Supreme Court of South Australia, the lawyers representing The Bikini Body Training Company argued that Olholm’s continued presence on the Sweat app, including in fitness videos, justifies their request for an injunction. They claim that the online presence is a crucial part of their product and that Olholm’s launch could detrimentally impact their business.
Olholm’s lawyer, Thomas McFarlane, contests that the 12-month non-compete clause is excessive and proposes that it should be reduced to a 6-month period. His client is eager to launch her app and believes that the 12-month prohibition would unduly restrict her ability to compete in the market.
Judge’s Suggestion for Compromise
Judge Graham Dart, seeking a resolution outside of court, proposed a compromise during the proceedings. He suggested reducing the non-compete clause to 9 months, allowing Olholm to launch her app on January 1st. This compromise would alleviate the need for both parties to spend significant sums on legal fees.
The lawyers representing The Bikini Body Training Company argued against the compromise, asserting that the upcoming summer season is a pivotal time for their fitness training app. They emphasize the urgency of the injunction to avoid potential losses in revenue.
Editorial
The legal battle between Kayla Itsines’ company and her former employee highlights the competitive nature of the fitness industry. As trainers and fitness influencers seek to establish their brand and gain market share, conflicts regarding non-compete clauses and intellectual property rights are becoming increasingly common.
It is essential to strike a balance between protecting legitimate business interests and fostering healthy competition. Non-compete clauses, although necessary in certain situations, should be reasonable and fair to allow individuals to pursue their entrepreneurial ambitions without undue restriction.
Furthermore, it is crucial for companies to adapt and innovate continuously. With the rapid advancement of technology and increasing consumer demand for fitness apps, businesses in the fitness industry must stay ahead of the curve. This means embracing competition and finding unique ways to engage and retain users.
Advice for Fitness Trainers
For fitness trainers and aspiring entrepreneurs in the industry, it is vital to be aware of the potential legal implications when considering launching a competing app or service. Carefully review your employment contracts and non-compete agreements to understand the scope and duration of any restrictions.
If you find yourself in a legal dispute, consider engaging the services of a lawyer experienced in intellectual property and employment law. They can provide guidance and assist in negotiating a resolution that is fair to both parties.
Remember, the fitness industry is vast, and there is plenty of room for innovation and success. Instead of focusing on litigation and disputes, consider investing your energy in creating a unique and valuable offering that resonates with your target audience. By focusing on providing excellent service and content, you can build a loyal following and establish yourself as a leader in the industry.
In conclusion, while legal battles over competing fitness apps are not uncommon, it is essential to balance the protection of intellectual property rights with fostering healthy competition. This case between Kayla Itsines’ company and Cassandra Olholm serves as a reminder of the challenges faced by those in the fitness industry and underscores the need for entrepreneurs to stay informed and innovative in this rapidly evolving field.
<< photo by Fitsum Admasu >>
The image is for illustrative purposes only and does not depict the actual situation.
