Skillz celebrates a legal victory with a $42.9 million in the patent infringement lawsuit
In a landmark legal battle, game competition platform Skillz emerged victorious in a $42.9 million lawsuit against game developer AviaGames for patent infringement. The jury's decision favored Skillz after demonstrating AviaGames' deliberate use of its patented platform without authorization.
Skillz alleged that AviaGames, once a sanctioned developer for its platform, unlawfully replicated its patented technology and games from Big Run Studios to create a competing skill-based gaming platform. This platform allowed players to wager real money for prizes in matches against other real players.
Andrew Dahlinghaus, Skillz' general counsel, expressed satisfaction with the verdict, stating, "It's a step in the right direction to promoting fairness in our industry."
Among the evidence presented, Skillz highlighted internal communications revealing AviaGames' intent to undermine Skillz with "Project X," a rival platform for hosting skill-based game tournaments. AviaGames' introduction of Pocket7Games further intensified competition, leading to a decline in Skillz's stock value and AviaGames securing $40 million in funding in 2020.
Skillz attorney Lazar Raynal denounced AviaGames' actions as "a complete ripoff of Skillz."
Skillz also accused AviaGames of deceiving players by using bots disguised as human opponents in multiplayer games involving real-money bets. Despite AviaGames CEO Vickie Chen's denial of bot usage, Skillz presented evidence from its investigation, including internal communications referring to bots as "Cucumbers" and "Guides." Skillz alleged that AviaGames misled players by matching them against unbeatable bots instead of real human opponents, accusing the company of fraud and racketeering.
Source: adapted from an article by Isa Muhammad, Staff Writer for PocketGamer.biz.