Electronic Arts
Inc.(NASDAQ:EA) has sued Zynga Inc(NASDAQ:ZNGA) last week alleging that the
latter’s ‘The Ville’ game has copied many an element from EA’s ‘Social Sims’
game. Games industry does not really face lawsuits like these, for good
reasons. Imitating other manufacturers’ games happens in the industry and every
other player does it. According to Prof. James Grimmelmann, the games industry
has developed a lamentable culture of copy cattery.
Get
Complete Updates on The News
Grimmelmann feels that
a lawsuit that redefines the industry’s practices in imitating game designs can
lead to a counterproductive conclusion. Even if EA wins the lawsuit, which is
highly doubtful, the consequential legal example can give rise to even more
powerful tools to potential plaintiffs, who can charge against EA for copying
their games. This is because every person in the industry lives in a glass
house and the major participants here would not choose to throw stones.
EA needs to overcome
some complicated aspects of the patent law in order to win this lawsuit. EA
would need to have a stronger standpoint rather than just the claim that Zynga
has imitated its fundamental concept of the game and its in-house game window
design resembles that of EA’s. Everyone is aware of what the copyright law
states. It says that everyone can copy the basic design. Apparently, Zynga has
been careful while changing several details in its execution of the concept of
the game in keeping with game practices.
How
Should Investors Trade ZNGA After
Today’s News
Without a doubt, Zynga
cannot afford to lose this lawsuit as it has established its business on
imitation of other games. Any adverse ruling to that practice can prove to be
detrimental for Zynga. However, EA is planning on destabilizing the current
industry practices about game copying. Any consequential litigation can result
in eroding EA’s profits. On the contrary if EA succeeds in redefining the legal
standards of imitations in game industry, it would make things tougher for
future copyright owners.
Shares of ZNGA rose
3.74% to $3.05 and shares of EA added 5% to $12.83.
No comments:
Post a Comment