Zynga Claims Patent on “Online Currency”
Zynga, the authors of numerous popular Facebook games, recently submitted a patent application for “virtual currency” to the PTO. Zynga’s application seeks ownership of various methods of converting US currency into online currency. At first glance, it seems that the application will run into significant novelty issues – the use of online currency isn’t exactly new. However, Zynga has attempted to narrow the scope of their application. Specifically, the covered conversion is exclusively for online currency that cannot be converted back into US currency. This limitation distinguishes Zynga’s claim from the online currencies utilized by the thriving (and long-established) online gambling community. Nonetheless, the folks over at Second Life might be surprised to learn that non-refundable online currency was Zynga’s creation.
Zynga’s application also raises the question of what role patents should play in the rapidly developing online marketplace. Personally, I am disinclined to support broad patent rights in online technologies. At its most fundamental level, the internet is based upon open sharing of information. The capacity of individuals in an online community to adopt, change, and improve others’ ideas is the core of the internet’s creative force. In contrast, the basic goal of patents is to provide short duration monopolies to spur research and development. The patent doctrine is tailored to provide a counterbalance to high investment costs that might otherwise discourage entrepreneurs. In the online marketplace no such incentive is required; the general public freely assists in the testing and development of ideas. Given the reduced barriers to developing new technologies in the online sphere, a grant of monopolistic rights over such discoveries is both unnecessary and counterproductive.
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Right, but even if they can distinguish themselves from online gambling, there are business models like Iron Realms http://www.ironrealms.com/payment-faq and other free online games that are supported through in game currency.
Definitely going to be a novelty issue.
Eric – I would agree. The next interesting questions are why they bothered with the filing, and why they filed now. I wonder if they intend to use the fact of the application as leverage in negotiating unrelated business deals. Or, in the alternative, if they are hoping that some narrowed version of the application could survive. It would certainly be a coup if they could get any of their claims through.
James Lafave
Looking through your blog a thought occurred in my opinion. I’ll tell a person honestly that today there are so many MMORPGs that I are not aware of what is the best play. Again and yet again produced some new game plus its hard to ascertain what level that they represent. Obviously as an enormous fan of these kind of games have the favorites, but these are only old games that are already in the marketplace for several ages. I would love to try something completely new. Do you currently have any ideas?