Addressing legal issues with the latest technological developments and social media trends.
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The Director of the USPTO recently explained why patents are “innovation currency,” how they create jobs and how they add significantly to the economy. He also explained why this is driving the multi-billion dollar acquisitions of patents and high-profile patent wars in the mobile space. The Director also acknowledged that the patent system is not perfect, but highlighted the new patent laws that will help ensure the quality of software patents. In part, the Director said:

It is increasingly clear that intellectual property, or IP, is a key driver of economic growth, exports, and job creation. IP rights are the global currency for creating value for products and services, for all innovators, in all markets. And the protection provided by patents is critical to the innovation ecosystem. In fact, last spring, the U.S. Commerce Department released a report that found IP-intensive industries support at least 40 million jobs and contributes more than $5 trillion to our economy, accounting for 35 percent of America’s gross domestic product. So it is in this context that we are seeing multi-billion dollar acquisitions of patent portfolios and a number of high profile patent lawsuits, involving some of the most innovative companies on the planet, who are producing some of the most popular technologies ever created.

For a full copy of the speech, click here. 

Notwithstanding the clear value and importance of software patents, many companies still do not appreciate their value. Additionally, many people do not fully understand the types of software-based inventions that can be patented. Those that do not seek guidance from knowledgeable patent attorneys who specialize in software and internet patents fail to retain their rightful share of innovation currency.

Software and internet patents are crucial to many of today’s leading industries, including games, social media and mobile.

If you are interested in learning more about challenging software patents under the new laws, we have a team of people dedicated to these new procedures.

 

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patent images.jpgYES! One of the often cited reasons for not pursuing patents
is that they take too long to obtain. In response to this concern, the
US Patent office has implemented a procedure that enables applicants to
make a request, when an application is field, to expedite examination of the application.

Based on recently published statistics, the vast majority of these
requests are being granted (if submitted properly) and cases are being
allowed within 11 months from filing (assuming they are patentable).

In fast moving spaces such as social games, mobile apps and social
media, this procedure can be very effective to rapidly obtain much
needed patents.

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The U.S. DOJ’s announcement last December –that it was now interpreting the 1961 Wire Act as primarily prohibiting only online sports betting– generated a lot of excitement and speculation that many states would move to legalize online gaming.

Today, almost one year later, the excitement remains although little actual activity has occurred. So far, only Nevada and Delaware have enacted legislation permitting online gaming. DC enacted legislation, but it was repealed before it was implemented.

As this article makes clear, however, social gaming continues to provide a viable and profitable online gaming alternative, while states craft legislation to address online gambling.

Meanwhile, a number of companies are jockeying for position in anticipation of more online gaming legislation. Numerous acquisitions have occurred in this space. For example, International Game Technology acquired Facebook casino games developer DoubleDown in January, 2012 for $500 million.  DoubleDown does not permit betting with real money, but rather generates revenue by selling virtual gaming chips.

Social entertainment company RockYou acquired Facebook casino developer Ryzing, creators of Bingo by Ryzing.

Social game developer Zynga is doubling down on its gambling-based business strategy. Zynga rakes in some serious profits from Zynga poker (selling virtual poker chips that cannot be redeemed for cash). Reportedly, Zynga is expanding its focus in this area to include online gambling.

Social game developer Big Fish launched a new iPhone app called Big Fish Casino, which includes real-money gambling (in the UK) in conjunction with the Betable gambling platform. This is the first time that a real-money gambling game will be available in the App Store.

Facebook, too, has started hosting real-money gambling games, by offering Bingo Friendzy by Gamesys on its platform.

Casino operators are also jumping on the band-wagon.  Las Vegas Casino operator Station Casinos announced it is acquiring a stake in Fertitta Interactive, which offers online games, social gaming, and entertainment services, including an online poker game.

And the list continues.

As this sampling shows, many companies are diving into online gambling, where it is legal. Others are leveraging social gaming and other models that (ideally) do not involve real money gambling. Others are employing creative business models and strategies involving contests, sweepstakes and gambling-like activities in social games or what we refer to as gamblification!

Pillsbury’s Social Media, Entertainment & Technology Team has prepared a white paper on legal issues associated with these “gamblification” strategies.

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Binary world A weekly wrap up of interesting news about virtual worlds, virtual goods and other social media.

 

 

Beyonce Still Can’t Nix Video Game Suit, Appeals Court Says
A New York intermediate appeals court on Thursday affirmed a lower court ruling that pop singer Beyonce could not nix a suit alleging she violated a contract by abruptly pulling the plug on a multimillion-dollar video game development deal.

Video Game Co.’s Award Doubled To Over $9M In IP Battle
A North Carolina federal judge on Wednesday more than doubled a $4.5 million jury award Epic Games Inc. won against another video game developer, finding Silicon Knights Inc. deliberately copied code for Epic’s game engine and then initiated “a prolonged coverup.”

Consumers find social media increasingly trustworthy
In line with ING’s ambition to be at the forefront of developments in social media, ING is today presenting the study ‘Impact of social media 2012 (#SMING12)’ based on a survey among 1,500 Dutch consumers. The survey shows that consumers find social media increasingly trustworthy. 65% said they find the information posted on online media to be trustworthy. 40% of consumers find posts made on social media to be trustworthy.

HoneyBaked Granted Social Media Discovery in EEOC Suit
A magistrate judge in Colorado has granted HoneyBaked Ham Co.’s request for discovery of social media accounts, text messages and emails of a class of women in the U.S. Equal Employment Opportunity Commission’s’ sexual harassment suit against the company.

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On October 30, 2012, California Attorney General Kamala D. Harris issued a press release regarding a new enforcement effort involving California’s Online Privacy Protection Act,  Cal. Bus. & Prof. Code §§ 22575-22579 (“CalOPPA”). CalOPPA requires that “an operator of a commercial Web site or online service that collects personally identifiable information through the Internet about individual consumers residing in California who use or visit its commercial Web site or online service” conspicuously post a privacy policy that complies with specified requirements. In the case of an online service, the privacy policy must be “reasonably accessible … for consumers of the online service.” An operator of a mobile application (“App”) that uses the Internet to collect personally identifiable information is an “online service.” An App’s commercial operator will be required to conspicuously post its privacy policy so that it is reasonably accessible to the consumer. The AG confirmed that, having a website with the applicable privacy policy conspicuously posted may be adequate, but only if a link to that website is “reasonably accessible” to the user within the App. The AG warned that, under California’s unfair competition law, violations of CalOPPA may result in penalties of up to $2,500 for each violation, i.e., for each copy of the unlawful App downloaded by California consumers. Click here for a copy of the California Attorney General Kamala D. Harris’ press release and a sample non-compliance letter. 

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Binary world  A weekly wrap up of interesting news about virtual worlds, virtual goods and other social media.

 

 

Cypress Hill Singer’s Grand Theft Likeness Suit Put To Rest
A California appeals court refused Wednesday to revive a former Cypress Hill backup singer’s suit claiming that his likeness was misappropriated in a Grand Theft Auto video game, ruling the game’s creative elements transformed it into more than a mere imitation of the plaintiff.

VCs invest $150m in mHealth during Q3: YTD total hits $616m
In the third quarter of 2012, mhealth companies received $150.1 million in venture capital bringing the year to date total investment in the sector to $616 million according to data collected by Mobile Health Market News.

Feel The Force: Angry Birds Star Wars Tops U.S. App Store In Record 2.5 Hours, Says Rovio
Rovio’s Angry Birds Star Wars mash-up launched yesterday — and took just 2.5 hours to reach the number one spot in the U.S. App Store. In a blog announcing the figure, the games maker noted that the speed with which its latest Angry Birds incarnation rocketed to the top of the chart beat all its previous records.

Twitter unintentionally resets some passwords trying to plug breach
Twitter reset some passwords in an attempt to protect members whose accounts may have been compromised by a hacker, but inadvertently reset a larger number of accounts than needed, the micro-blogging service said Thursday.

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Binary world  A weekly wrap up of interesting news about virtual worlds, virtual goods and other social media.

 

 

Google Wallet targeted in patent infringement suit
Google is the target of a new lawsuit alleging its Wallet contactless payment system infringes on a patent issued in late 2007.

Site Unseen: Schools, Bosses Barred from Eyeing Students’, Workers’ Social Media
This year several states have sought to block personal passwords from inquiring principals and bosses.

California Targets Mobile Apps For Missing Privacy Policies
Mobile app developers that don’t post conspicuous online and in-app privacy policies will face $2,500 fine per download.

Girl Scouts Use Social Media, Mobile Tech to Break Cookie Sales Records
The ease of connecting with customers through email, texting and social media is one of the reasons the Girl Scouts are selling more cookies than ever before. Almost $800 million worth of Thin Mints, Samoas and other coveted flavors were sold during the 2011-2012 selling season.

Virtual worlds help autistic kids develop social skills
A new study has suggested that the benefits of virtual worlds can be used to help autistic children develop social skills beyond their anticipated levels.

 

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App Conference PIC.jpgThe App Conference and Global Mobile Internet Conference (GMIC) took place October 18-19-20 at the San Jose Hilton and San Jose Convention Center. This event brought together more than 100 speakers that addressed key components of app development, marketing and revenue in 6 conference tracks over 3 days. With an emphasis on cross platform development, revenue strategies, and global growth, the shows provided key insight and networking for both developers and business professionals. Pillsbury team members Jim Gatto, Ian Schick and Jessica Slater (pictured) attended the conference.

Jim Gatto participated on the “Going Global” panel. The panel discussed a broad range of international issues and answered a number of questions including: How should developers think about going global and implementing an international strategy? Is there a difference in the way apps are conceived, developed and marketed in each type of market that each can learn from? When is the right time to localize a successful domestic app for international audiences? What are some of the pitfalls to avoid when trying to market an app internationally, and who should you be partnering with for distribution? What cultural, educational and financial differences affect the way in which apps are adopted? How do you successfully launch an app for worldwide audiences?

Fellow panelists included executives from GAMEVIL, BlueRun Ventures and Tapjoy, Inc.

For more information, feel free to contact any member of the Pillsbury team.

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Thumbnail image for GDC PIC.jpgOctober 9-11, Pillsbury team members attended the GDC Online Conference in Austin. Pillsbury has been participating (attending, speaking, sponsoring) GDC Online for over four years and we wouldn’t miss the final year the show will take place in Austin, Texas.

The conference brings together industry professionals and game developers for three days of sessions, discussions and networking opportunities. This year the conference boasted over 120 lectures, keynotes, panels, roundtables and tutorials. Topics focused on the development of connected and cloud gaming including social network titles, free-to-play web games, kid-friendly online titles, large-scale MMOs, and much more. This year’s conference attracted over 3300 attendees.

Pillsbury team members Ben Esplin (pictured) and Brad Blaise met with dozens of professionals and game developers. The most common topic of conversation was intellectual property (IP) protection for games. Many misperceptions cause developers to miss great opportunities to secure IP protection for their ideas. In part, this is due to a lack of a true understanding of what is protectable and/or not working with an attorney with the relevant expertise. Games are all about IP. Why make it unnecessarily easy for others to free ride on your hard work and creative genius. Check out our IP Protection for Games piece to learn more. Contact Ben, Brad or anyone of our team members should you have any additional questions.

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Binary world  A weekly wrap up of interesting news about virtual worlds, virtual goods and other social media.

 

 

Ubisoft Files Lawsuit against BEP Music over Music Game
Publisher Ubisoft has filed a $1 million lawsuit against BEP Music LLC in Superior Court claiming that it created an iOS versions of a popular Wii game, which its client refused to acknowledge as per a licensing agreement the two companies entered into in June of 2011.

Judge dismisses ex-Arizona State football player from Ed O’Bannon lawsuit vs. NCAA
A federal judge today dismissed former Arizona State football player Ishmael Thrower from the Ed O’Bannon lawsuit brought by ex-athletes against the NCAA, EA Sports and College Licensing Company over the commercial use of their images and likenesses.

Harrods targets teens with fashion push
Luxury department store Harrods is partnering with online community Stardoll as part of its strategy to target a younger audience of fashion fans.

Zynga Just Shut Down Boston Office, Laid Off 100+ Employees From The Ville And Bingo Teams In Austin
Possibly trying to hide the grim news by announcing it during Apple’s event, we’ve just independently confirmed that Zynga has shut down its Boston office and laid off 2/3s of the employees in its Austin office, including cuts to The Ville and Bingo teams. We’ve now confirmed the initial report from Justin Maxwell. We’ve also just heard Zynga may have an all-hands meeting this afternoon.

Boarding pass barcodes ‘can be read by smartphones’
A vulnerability in US domestic airline boarding pass barcodes could allow travellers to bring unauthorised items on board, says a security expert.

Utherverse nabs a patent on scalable virtual worlds that can host unlimited users
Utherverse is announcing today that it has won a patent to build a “scalable” virtual world, or one that can support an unlimited number of players in a single region of an online place. That could allow virtual worlds to achieve a critical mass for events like a convention or a concert.

Zynga Makes Its First Move Into ‘Real Money’ Games, Partners With Casino Gaming Giant Bwin.Party
I’ve a feeling we’re not in Farmville anymore. Zynga announced today its first concrete move into “real money” gaming, in other words, gambling-oriented games that let people both win and lose actual cash with each other.