Boston, MA 11/04/2013 (wallstreetpr) – Zynga Inc (NASDAQ:ZNGA), the provider of social games services and Mettel Inc (NASDAQ:MAT), a toy maker, are contesting trademark rights with the latter claiming infringement on its Scrabble trademark. However the High Court of Justice ruled in favor of the online social games maker, saying did not violate the trademark as claimed.
For ZNGA using the word “Scramble” in its game Scramble with Friends, MAT claimed it was too close to its “Scrabble” trademark and sort to have ZNGA stopped from using the word. While Justice Peter Smith said there was no clear copyright violation in the matter, he noted that curly letter M in Scramble with Friends logo has the propensity to confuse. It thus means that while ZNGA is at no patent offense, it would need to change the design of its Scramble with Friends logo.
In its defense, ZNGA said that the copyright claim by MAT was too vague. It said that the trademark claim if sustained would prohibit combination of any letter and number on ivory-tile color and size not withstanding.
It is not the first time that ZNGA defeated the patent infringement in relationship to the logo of its Scramble with Friends game. In early October, the lower court upheld its argument that MAT was attempting to perpetuate monopoly on almost all ivory-colored tile shape. But MAT moved to the appellate court which also upheld the ruling with assertion that ruling otherwise would perpetuate unfair competitive advantage.
ZNGA develops, sales and operates online social games played on mobile platforms and social networking sites. The company has a significant player numbers especially on its mobile platforms which according to data released in Dec last year, exceeded other developers combined in terms of time spent on the games. The developer has 10 games based on DUAs on Facebook platform.
The $2.88 billion capped company traded south at the close of last weeks trading session, gapping down 0.03 to finish $3.58 in regular session. Its traded volume remained lower than the daily average.