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Thursday, September 12, 2024

Jury awards Skillz $42.9M in patent infringement trial



A jury has awarded Skillz a $42.9 million judgment in its patent infringement lawsuit in opposition to rival AviaGames.

The jury discovered that Skillz offered a preponderance of proof that AviaGames willfully infringed certainly one of Skillz’s patents.

Skillz had alleged that AviaGames, initially an authorised developer for the Skillz platform, had copied its patented platform and video games from Massive Run Studios in creating AviaGames’ personal skill-based gaming platform, the place gamers can wage actual cash for rewards in matches in opposition to different human gamers.

“The jury awarded us $42.9 million and located willful infringement. We’re very happy with the decision. It’s a step in the appropriate path to selling equity in our business,” mentioned Andrew Dahlinghaus, normal counsel of Skillz, in a press release.

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Skillz introduced up inner communications about how AviaGames deliberate to “kill Skillz” with a plan dubbed Mission X, a competing platform to host skill-based sport tournaments with actual cash prizes. AviaGames launched Pocket7Games and it started taking market share from Skillz, leading to a decline in Skillz’ inventory worth. AviaGames was in a position to elevate $40 million in 2020.

“It’s an entire ripoff of Skillz,” mentioned Skillz legal professional Lazar Raynal in opening statements.

In the midst of investigating the patent infringement, Skillz alleged it discovered that AviaGames was deceiving gamers by pitting human gamers in opposition to bots, which had been managed by the corporate and engineered to defeat the human gamers who had been wagering actual cash within the perception they had been taking part in in opposition to different people. Skillz alleged that AviaGames had created a bot referred to as a “shark robotic,” which went after people who received an excessive amount of and made positive they didn’t win extra.

Throughout the week-long case, AviaGames CEO Vickie Chen testified by way of TV and translator that AviaGames didn’t use bots in multiplayer video games the place people had wagered cash.

Nevertheless, Skillz introduced proof from discovery about AviaGames’ inner communications discussing using bots by way of code phrases Cucumbers and Guides. This allegation prompted a federal investigation in opposition to AviaGames. We now have requested AviaGames for remark. Gamers additionally filed a class-action lawsuit in opposition to AviaGames, saying it defrauded them through the use of the bots with out disclosing it to gamers.

Throughout the course of that litigation, Skillz mentioned it uncovered proof that Mountain View, California-based AviaGames, which raised $40 million in enterprise capital, deceived gamers by pitting people in opposition to unbeatable bots as a substitute of in opposition to actual people. Skillz mentioned this constituted unlawful playing, and now the class-action go well with alleges each fraud and racketeering.

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