Social Gaming Patent Troll Goes After Facebook, Zynga For In-Game Purchases

from the some-build-bridges,-some-live-under-them dept

Another day, another patent troll. Ars Technica reports that a shell company called Gametek LLC is suing a bunch of social gaming giants, including Facebook and Zynga. The patent? Patent #7,076,445: "A system and methods allowing the creation, integration, and transaction of advantages," later clarified (somewhat) as giving the user "access to and purchase offered advantages and interact with interactive advertisements to purchase products and or services." In other words, in-game purchases. The one and only point in the patent's favor is its early registration date:

"It looks like the patent was filed June 20, 2000, and at that time, I'm not sure this isn't a novel idea," Dallas attorney and Law of the Game blog author Mark Methenitis tells Ars Technica. The early filing means the patent "predates Facebook and most all of the social games as we know them," Methenitis notes, though older gaming services like AOL and Yahoo Games may have been using similar techniques before that.

Even if there is no prior art, this just demonstrates the problem with software patents. Software innovation moves fast, and the majority of "novel" inventions are still pretty obvious and inevitable, usually being developed by multiple people at once. More importantly, they don't require any actual implementation, just laughably vague descriptions of a concept like the ones above. That allows companies like this to buy a patent, sit on it, do nothing, and attempt to place a private tax on the actual innovators:

But the lawsuit doesn't seem to comes from a company that actually makes such games. The patent in question was granted in 2006 as the sole protected invention for one Shawn Cartwright. It was then transferred to little-known "revenue transaction software" company Theados Corp. last year, before being reassigned to plaintiff Gametek earlier this month.

The Gametek LLC that filed the lawsuit is based in Newport Beach, Ca., but shares a name with a Florida-based, early-'90s game developer best known for game show adaptations which closed its doors in 1998. The shell company doesn't seem to have any legitimate products in social gaming or any other field, and may have been created specifically to argue this case.

When companies are able to hold back real progress while contributing zilch, it's just more evidence that the patent system is broken.

Filed Under: in app payments, in game purchases, patent troll, patents, social gaming
Companies: facebook, zynga

Putting 'Game Pieces' Together Online To Win Something Patented; All The Big Social Gaming Companies Sued

from the this-got-a-patent? dept

Someone, who prefers to remain anonymous, sent over the news that a company named Everglades Interactive has sued basically all of the big "social gaming" providers for patent infringement. Among those sued are EA, Playdom, Disney (which just bought Playdom), Zynga, Playfish, Rockyou and Crowdstar. The patent in question? It's patent 6,656,050, for an "odds accelerator for promotional type sweepstakes, games, and contests." If you read the details, it seems like the pretty standard process of taking various sweepstakes involving matching pieces (bottle caps, peel off stickers, etc.) to get certain prizes but moving it online. Of course, once you move such a physical process online, you can do slightly different things since you're not limited by geography and physical distribution. But all that seems like it should be obvious. Not to the patent examiners of course, who judged it patent worthy.

So how do all these social gaming sites infringe?

... by, among other things, making, using, importing, offering for sale, and/or selling products and services that provide game pieces that are applied to a game board at a game site, make information available about the pieces needed to complete a winning combination, allow the player to share or trade the game pieces, and enable the players to easily and securely store game pieces....

Of course, you would think that since pretty much every social gaming system does this, that it would be clear that this was an obvious thing to do if you're building a social gaming system. But, tragically (and ridiculously), that's not how our patent system works.

Filed Under: patents, social gaming, sweepstakes
Companies: disney, ea, playdom, rockyou, zynga

Astroturf Health Insurance Lobbying Group Paying Social Gamers To Oppose Health Reform

from the wow dept

We've seen plenty of stories of "astroturf" campaigns by lobbyists looking to influence public policy by pretending that there's grassroots support for some corporate position. And, we've seen stories of virtual goods scams taking place on various social networks, which are used to get unsophisticated social gamers to sign up for subscriptions to things that they don't want. But what happens when you combine the two?

Nicholas Carlson has an astounding story about a health insurance astroturf group that is using those social gaming "offer" services to get gamers to contact their elected officials to oppose health care reform in exchange for virtual currency in games. Yes, health insurance companies are basically trying to bribe a bunch of Farmville and Mafia Wars players on Facebook to send messages to their representatives, that say: "I am concerned a new government plan could cause me to lose the employer coverage I have today. More government bureaucracy will only create more problems, not solve the ones we have." In exchange, you get some virtual currency to spend.

The group behind this virtual bribery astroturfing effort is backed by a who's who of insurance trade associations... and when Carlson tried to contact them for comment, the email bounced. Nice to see that some of the scammiest lobbying groups out there have found some of the scammiest marketing techniques out there as well.

Filed Under: astrotuf, health care, health insurance, health reform, lobbying, social gaming