Zynga Ordered to Pay IBM $45 Million in Patent Infringement Case
Background
A federal court in the U.S. has ruled that social gaming giant Zynga must pay IBM $45 million in damages for infringing on a patent related to the management of virtual game assets. The patent, known as the "Virtual Asset Management System" patent, was granted to IBM in 2014 and covers technology that allows users to create, manage, and transfer virtual items within a game.
IBM alleged that Zynga had infringed on the patent through its use of similar technology in its popular social games, such as FarmVille and Words With Friends.
The Court's Decision
The court found that Zynga had willfully infringed on IBM's patent and that IBM was entitled to damages in the amount of $45 million. The court also ordered Zynga to stop using the infringing technology in its games.
Zynga has said that it will appeal the ruling.
Implications for Zynga
The ruling could have a significant impact on Zynga's business. The company has built its success on the popularity of its social games, many of which rely on the use of virtual items. If Zynga is unable to continue using the infringing technology, it could be forced to change the way it designs and develops its games.
The ruling could also make it more difficult for Zynga to compete against other social gaming companies that do not use similar technology.
Implications for the Social Gaming Industry
The ruling could also have implications for the social gaming industry as a whole. If other companies are found to be infringing on IBM's patent, they could face similar lawsuits and damages.
This could lead to a shake-up in the social gaming industry, as companies are forced to find new ways to create and manage virtual items in their games.
Comments