Skillz Secures USD 42.9 Million Victory in Patent Infringement Case Against AviaGames

The Verdict and Its Implications

After a week-long trial, the jury found that AviaGames willfully infringed one of Skillz’s patents, a decision that could potentially triple the damages awarded, subject to the presiding judge’s discretion. This outcome not only underscores the severity of the infringement but also sets a precedent for how similar cases might be adjudicated in the future.

Skillz’s general counsel, Andrew Dahlinghaus, hailed the verdict as a “step in the right direction to promoting fairness in our industry.” The statement reflects the broader industry sentiment that protecting intellectual property is paramount to fostering innovation and fair competition among gaming platforms.

Background of the Dispute

The dispute centers around Skillz’s accusation that AviaGames’ Pocket7Games app was essentially a “copycat” of its platform, featuring “knockoff” versions of its games. Skillz initiated the lawsuit in 2021, alleging that AviaGames had stolen its technology following a failed game launch on the Skillz platform in 2016. According to Skillz, this act was part of a deliberate “plan to kill Skillz,” a claim supported by evidence presented during the trial.

AviaGames, on the other hand, has consistently denied these allegations, arguing that its technology operates differently and suggesting that Skillz’s actions were motivated by competitive animosity rather than legitimate legal grievances.

Additional Legal Challenges for AviaGames

The verdict comes amid other legal challenges for AviaGames, including accusations of using bots to manipulate its cash games and a subsequent grand-jury subpoena from the U.S. Attorney’s office in New Jersey. Additionally, a related class-action lawsuit has been filed against AviaGames in California, further complicating the company’s legal landscape.

Skillz, along with another mobile-gaming company, Big Run Studios, has also initiated a copyright infringement lawsuit against AviaGames, which is still pending in Northern California. This series of legal battles underscores the intense rivalry and the high stakes of intellectual property rights in the rapidly evolving mobile gaming industry.

Looking Ahead

The outcome of this case is a pivotal moment for the esports and mobile gaming sectors, emphasizing the importance of patent protection and the potential consequences of infringement. As the industry continues to grow, the resolution of such disputes will undoubtedly shape the competitive dynamics and innovation pathways for gaming companies worldwide.

Image Source: Venturebeat

Skillz Platform Inc v. AviaGames Inc, U.S. District Court for the Northern District of California, No. 5:21-cv-02436.

Counsel to Skillz

• King & Spalding

Partners Lazar Raynal, Chris Campbell, Jessica Benvenisty from New York, Chicago and Washington D.C. and associate Matthew Wood

Conunsel to AviaGames

• Perkins Coie
• Keker Van Nest & Peters

Partners Jerry Riedinger from Seattle, Nathan Sabri from San Francisco and Wendy Wang from Palo Alto

Partner Ajay Krishnan