Bloomberg News

Zynga Is Sued by Rival Segan Over Computer-Games Technology

August 01, 2011

(Updates with excerpt from complaint in third paragraph.)

Aug. 1 (Bloomberg) -- Zynga Inc., the largest developer of games on Facebook Inc.’s website, was sued in federal court in Delaware by rival Segan LLC over accusations it infringed a U.S. patent for viewing network content with products including “FarmVille” and “Mafia Wars.”

Segan, based in Long Island City, New York, contends Zynga, of San Francisco, has knowingly used the invention, patented in 2006, and should be prohibited from infringement after a jury trial, according to a July 29 complaint filed in Wilmington.

Segan “has suffered injury and monetary damages” and is entitled to “a reasonable royalty to compensate” for the infringement, plaintiff’s lawyers said in court papers.

Zynga has filed for an initial public offering to raise $1 billion, according to a regulatory filing. The company said last month it is expanding into China with a version of “CityVille,” its most popular game, in Chinese.

Dani Dudeck, a Zynga spokeswoman, didn’t immediately return an e-mail message seeking comment on the lawsuit.

The case is Segan LLC v. Zynga Inc., 11CV6760, U.S. District Court, District of Delaware (Wilmington).

--With assistance from Dawn McCarty in Wilmington, Delaware. Editors: Mary Romano, Stephen Farr

To contact the reporter on this story: Phil Milford in Wilmington, Delaware, at pmilford@bloomberg.net

To contact the editor responsible for this story: Michael Hytha at mhytha@bloomberg.net.


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