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EDTX Jury Awards $92M in Dispute Over Gaming Patent

May 9, 2021 Mark Curriden

A multi-day trial between a Japanese internet media giant and a Chinese technology conglomerate over the patent rights to popular online games ended Friday with a federal jury in Marshall awarding $92 million.

The East Texas jury found that key patents held by Gree Inc. involving special features on their so-called “freemium” games are valid and that Tencent Holding and its Supercell subsidiary violated those patents in popular online games such as “Clash of Clans.”

Court documents show that Gree claims that their games are free but that players are able to purchase extra features, such as weapons or forts, when playing the games – that generated billions of dollars over the past few years. Gree claims it has multiple patents covering such technology and that Supercell products infringed on those patents.

In defense, Tencent rejected using any of Gree’s patented technology and claims that Gree’s patents are invalid.

The jury disagreed, awarding Gree $92,176,058 in actual damages.

In a statement, Supercell stated Friday that it plans to appeal.

Representing Gree in the litigation are Steven David Moore and Alton Absher of Kilpatrick Townsend; and Andrew Thomas Gorham, Harry Lee Gillam Jr. and James Travis Underwood of Gillam & Smith in Tyler. The lawyers for Supercell include Michael J. Sacksteder and Bryan A. Kohn of Fenwick & West in San Francisco; Deron Dacus and Shannon Marie Dacus of the Dacus Firm in Tyler.

Mark Curriden

Mark Curriden is a lawyer/journalist and founder of The Texas Lawbook. In addition, he is a contributing legal correspondent for The Dallas Morning News.

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