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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 supplied a preponderance of proof that AviaGames willfully infringed one in all Skillz’s patents.
Skillz had alleged that AviaGames, initially an accepted developer for the Skillz platform, had copied its patented platform and video games from Huge 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 more than happy with the decision. It’s a step in the precise route to selling equity in our trade,” mentioned Andrew Dahlinghaus, basic counsel of Skillz, in a press release.
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Skillz introduced up inside communications about how AviaGames deliberate to “kill Skillz” with a plan dubbed Venture 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 value. AviaGames was capable of increase $40 million in 2020.
“It’s a whole ripoff of Skillz,” mentioned Skillz lawyer Lazar Raynal in opening statements.
In the middle of investigating the patent infringement, Skillz alleged it realized 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 known 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.
Nonetheless, Skillz introduced proof from discovery about AviaGames’ inside communications discussing the usage of bots by way of code phrases Cucumbers and Guides. This allegation prompted a federal investigation in opposition to AviaGames. We’ve got 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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