Zynga Inc (NASDAQ:ZNGA) Wins Trademark Case Against Mattel Inc (NASDAQ:MAT)

Posted by Peter Lauro November 7, 2013 0 Comment 2545 views

Zynga Inc (NASDAQ:ZNGA), the social gaming company, May been struggling to develop mass-appealing games, but the company’s future looks brighter in 2014. Despite reporting a loss of $0.03 a share in its third quarter earnings, Zynga’s turnaround is fast approaching.

Recently, there was one positive report came in for the company’s investors and that is that Zynga has won the Scrabble trademark case. However, Zynga has been order to change the logo of ‘Scramble with Friends’ word game.

It should be noted that US-based Mattel Inc. (NASDAQ:MAT), also the world’s largest toy manufacturer which owns brands such as Barbie, Fisher-Price, Hot Wheels, as well as Scrabble, charged Zynga in a lawsuit alleging that Zynga’s has infringed the trademarks by using the word ‘Scramble’, which, according to Mattel, was nearly too close to the word ‘Scrabble’.

The High Court, where the case was heard,

however ruled in favour of Zynga, saying the name “Scramble” did not infringe the trademark. However, the court continued that despite showing no resemblance to word ‘Scrabble’, the use of a curly letter M in the logo of ‘Scramble With Friends’ word game does give the impression that the word is “Scrabble” when someone looks at it in a hurry and can confuse the audience. Therefore, the court has asked Zynga to change the logo of its game.

Mattel spokesperson Alan Hilowitz appreciated the court’s ruling saying that atleast the judge found similarities between “Scramble” and “Scrabble”, but he, at the

same time, feels disappointed on the fact that the court did not gave the ruling in their favour and should have stopped Zynga using the name altogether. Mattel plans to appeal the ruling further.

In addition, Zynga Inc (NASDAQ:ZNGA)

was recently also involved into another trademark case with casual sex app maker “Bang With Friends” for its infringement of “With Friends” trademark.

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