Take That! Zynga Countersues EA

The tables may be turning in this lawsuit dispute

By Tom Taulli, InvestorPlace Writer & IPO Playbook Editor


Last month, Electronic Arts (NASDAQ:EA) sued arch-rival Zynga (NASDAQ:ZNGA) over a copyright violation. The claim was that Zynga’s “The Ville” was a knock-off of “The Sims Social.” Now, though, the tables have turned. Zynga is firing back and has adding its own claims.

The lawsuit alleges that EA tried to get a no-hire arrangement to prohibit Zynga from poaching any of its employees — something that is illegal in California.

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All in all, it’s messy stuff, but litigation has become just a normal part of the tech world. Just look at the mega lawsuits in the mobile world with players like Apple (NASDAQ:AAPL), Samsung and Google (NASDAQ:GOOG).

It is getting tougher to differentiate products — especially in the online gaming world — as well as to get market share. So why not use litigation as a way to get an edge? After all, everyone’s doing it.

Zynga’s just the latest to jump on the bandwagon; the only difference is that it’s throwing the second punch.

Tom Taulli runs the InvestorPlace blog IPOPlaybook, a site dedicated to the hottest news and rumors about initial public offerings. He also is the author of “All About Short Selling” and “All About Commodities.” Follow him on Twitter at @ttaulli. As of this writing, he did not own a position in any of the aforementioned securities.

Article printed from InvestorPlace Media, https://investorplace.com/ipo-playbook/take-that-zynga-countersues-ea/.

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