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August 03, 2012

Electronic Arts Sues Zynga with Claim of Copyright Infringement

By Ed Silverstein, TMCnet Contributor

If Zynga (News - Alert) already doesn’t have enough problems, Electronic Arts (EA) is suing the gaming company.



It alleges copyright infringement from Zynga’s new Facebook (News - Alert) game called “The Ville.” In fact, EA says The Ville is “an unmistakable copy" of its own The Sims Social, according to a new lawsuit filed in California federal court. The Ville “copied and misappropriated the original and distinctive expressive elements" of its game, EA claimed.

"The similarities go well beyond any superficial resemblance," added Lucy Bradshaw, general manager of EA’s Maxis line – which came up with The Sims Social, USA Today reported. "Zynga's design choices, animations, visual arrangements and character motions and actions have been directly lifted from The Sims Social. The copying was so comprehensive that the two games are, to an uninitiated observer, largely indistinguishable." She adds in a statement it was a “clear violation of the U.S. copyright laws.”  

Meanwhile, Zynga general counsel Reggie Davis says the company will "defend our rights to the fullest extent possible."

"It's unfortunate that EA thought that this was an appropriate response to our game, and clearly demonstrates a lack of understanding of basic copyright principles," Davis was quoted by USA Today. "It's also ironic that EA brings this suit shortly after launching SimCity Social which bears an uncanny resemblance to Zynga's CityVille game.”

It was also reported that last year Zynga hired EA’s Chief Operating Officer John Schappert just as The Sims Social was getting close to completion and release. Zynga also hired Jeff Karp and Barry Cottle.

"By early 2012, Zynga had targeted and hired away three of EA's top executives who had access to the most sensitive design, development, and strategic information about 'The Sims Social,'" EA said in the lawsuit as reported by Reuters.

The Ville was introduced two months ago in June, a year after the launch of The Sims Social, CNET said.

In other company news, at least seven law firms were investigating Zynga on alleged insider trading questions. One law firm actually filed a class action lawsuit, TMCnet revealed. In addition, Zynga recently lowered its projection for the rest of 2012. Results for the latest quarter were short of projections by analysts. As it now stands, analysts are also saying Zynga's performance will not improve soon, according to Reuters (News - Alert).

Zynga was trading at $2.72 a share on Friday afternoon, compared to a $10 for its IPO or $12 in April, when Zynga made a secondary offering of shares.

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Edited by Jamie Epstein
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