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Zynga, Electronic Arts settle lawsuit filed in Northern District of California

Zynga Inc and Electronic Arts, Inc. have reached an end to litigation initially filed in the Northern District of California.

Both companies issued news releases regarding the settlement, but they would not disclose the terms.

Electronic Arts had filed suit against Zynga in August, alleging that Zynga's "The Ville" game infringed on the copyrights Electronic Arts holds to its game "Sims Social."

What was interesting about this case is how it represented the old guard versus the new upstart in terms of gaming.

Electronic Arts is the second-largest video game publisher in the world, but its largest successes have come on platforms like personal computers and game consoles. Those are still viable business models, but they are not exactly at the forefront of gaming anymore.

Zynga has been much more successful at capturing mobile users, who are believed to represent the most likely new pool of game consumers. Most of the games that have become bona fide social media sensations, like "Draw Something" and "FarmVille," have come from Zynga.

As just about anyone who works in the Bay Area knows, technology is a very fluid field. Consumers' preferences change rapidly, and it seems there is always a new competing product that threatens to make your offerings obsolete.

That is why a great many technology companies are very careful to make sure they have secured proper intellectual property protections for their inventions. This provides a layer of security and privacy that can be very beneficial in such a cutthroat business.

Source: Bloomberg News, "Zynga, Electronic Arts Agree to Settle Copyright Suit," Kare Gullo, Feb. 15, 2013

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