Zynga Sued for Alleged Patent Infringement

Zynga has been sued in a federal district court in Delaware for allegedly infringing along cardinal patents obtained in the 1990's by Agincourt Gaming.

According to a instruction announcing the legal action by Agincourt's law firm Susman Godfrey L.L.P., Zynga's FarmVille has violated Agincourt's patents covering the processes for credits-supported online gambling and for prize redemption settled on the consequence of game play. The suit too claims that the favourable games are infringing on Agincourt's intellectual belongings: FishVille, PetVille, YoVille, Zynga Salamander, Empires & Allies, Mafia Wars, Treasure Isle, FrontierVille, CityVille, CaféWorld, and Vampire Wars.

The lawsuit alleges that Zynga has a history of copying, rather than innovating.

Agincourt is seeking an unspecified amount in medium of exchange damages. If the suit is successful, Agincourt may luck out–considering it currently operates just one single online game titled Pantheon.

"Agincourt's patents cover the most lucrative aspects of online social gambling—including those comprising the bulk of Zynga's revenues–every bit they hold back the crucial link' that allows for global, interactive prize redemption concluded the Internet," states Bill Carmody, a senior partner at Susman Godfrey L.L.P.

Susman Godfrey explains that the marketplace for selling virtual objects in online games is "remarkably robust" and expanding rapidly. It's predicted that consumers testament pass $653 million this twelvemonth connected goods purchased in social network games, a 28 percent jump from last year's $510 million.

Zynga is positioned to capture the lion's partake in of that food market, according to the law firm. It is past out-of-the-way the largest online plot developer in the world. It has four of the five top games on Facebook that draw i 270 billion active users a month. In addition, in 2010 it took in almost $600 jillio in revenues.

Last month, the company filed to launch an Initial Public Offering (Initial public offering) for an fulgurant $20 billion.

From that IPO filing, it was evident that Zynga could see lawsuits in its tarot cards. "[D]uring our earlier history our practices relating to intellectual property¦whitethorn not rich person been atomic number 3 robust as they are straight off, and at that place may be unasserted claims arising from this period that we are not able to anticipate," information technology said.

Even off before it filed for its IPO, the company was targeted by patent holders who believe they deserve a cut of Zynga's action. In January, an invention firm started by Priceline.com founder Jay Walker filed a case against Zynga and Activision Blizzard, alleging the companies' most popular games infringe on Walker Digital's online tournament apparent.

Word of the lawsuit broke American Samoa unconfirmed reports were circulating the Internet that Zynga was taking its Farmville formula to the mobile blank by purchasing a company called Astro Imitator. Astro Ape's game portfolio includes Position Heroes, a social gage in which your "farm" is an office.

Keep up paid technology author Saint John P. Mello Jr. and Today@PCWorld on Twitter.