Is Zynga Trying To Patent Virtual Currency?
sarysa writes "Techcrunch spotted a recent patent application by Zynga, attempting to patent virtual currency purchased with real money for use in a gambling context. It is unlikely that the application will pass due to a plethora of prior art where free MMOs that have gambling minigames would qualify, but Techcrunch also spotted that the application mentions Farmville as an example of embodiment. This indicates that Zynga may be attempting to patent non-refundable virtual currency as a whole. Should be interestering to see how this develops."
Will there be an end to these?
What is there to stop them from getting the patent? Look at all the patents Apple has been granted in the past few years even though there have been several implementations prior to most of the stuff they now have patents on.
It's like the IPv6 problem.
Many people can see that this is something that will be a key element of future society. It's just a matter of patenting as many related ideas now and waiting for them to come into use.
* http://en.swpat.org/wiki/Webpage_and_web_service_patents
* http://en.swpat.org/wiki/Invalid_patents_remain_unchallenged
* http://en.swpat.org/wiki/Patent_trolls
* http://en.swpat.org/wiki/Divine_e-commerce_patents
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The problem with software/computer related patents is two-fold. The first: Is it truly unique, or is it only unique because it involves a computer? The second is the plethora of prior art available for most so-called unique implementations.
Those two problems have a root cause: /they/ (who could be below-average in knowledge about a particular field) don't know of any prior art off-hand.
The USPTO does not have (any or) enough patent/trademark clerks to really search out all instances of prior-art and because of the large back log are encouraged to just rubber stamp everything they come across if
Common knowledge (sense, or anything else that one generally considers as common) is NOT common.
"There is a way that seems right to a man, but its end is the way of death." Proverbs 16:25 (NKJV)
Surely online casinos have been doing this since forever?
The Major BBS by Galacticomm had a multiplayer poker game where you converted credits you bought for general use (usually used for metered online time) into poker chips, with the ability to win more credits.
Now I'm not a patent lawyer, but this paten sounds exactly, and I mean exactly like how we used to play.
Sites such as http://www.jingobid.com/ swoopo.com and mad bid have been doing this for ages in the form of non-refundable 'bids' which are the current used for participating in the auctions. Fat chance getting that kind of a patent through. The unified currency makes it easier to accept multiple currencies at a fair rate.
Back when precious metals were the currency, fiat currency is virtual currency.
If we want to stick to the IT field, with fractional reserve banking and dematerialization, normal currency is even more virtual than virtual one. The world is under the spell of numbers in a computer.
Patents on one side, pirate parties pushing for the complete removal of copyright on the other side... Both options would make people poorer, the second one seems the less troublesome but something in the middle would be the best: you can assert copyright but then you cannot disperse free samples to entice people (either it's open or it's behind a paywall), you can patent stuff that other people can't come up with on their own, you can sue, or even directly get compensation for something like "the actual damage infringement caused minus the advantages (publicity) gotten from piracy".
---- MISSING MISCELLANEOUS DATA SEGMENT --- [sigdash] trolololol
and what does that mean exactly ? what will happen is, eventually them or some other greedy pigs are going to patent something like this somewhere, and attempt to enforce it through international treaties. for, this is what patent system is : giving ownership of logic concepts to individuals. no different than letting a lord own a river and toll anyone who passes over it.
Read radical news here
Hopefully this doesn't (directly) affect anyone reading this. As in, I hope you're not wasting your money.
ALL currencies are virtual. They have only the value that a group of people assign them.
I'm trying to teach myself to set people on fire with my mind... Is it hot in here?
It must be nice to work at the patent office. If you're doing a good job, your boss will be happy with you. If you're doing a bad job, you will feel happy about yourself. Win-win situation.
If Pandora's box is destined to be opened, *I* want to be the one to open it.
It seems to me that Zynga is trying to end-run Facebook's attempt to take control of virtual currency transactions in Facebook apps. If they can get a patent on virtual currency, they can try to extort a big fat patent license fee from Facebook or otherwise escape the new Facebook Credits.
It will be interesting to see if Facebook contests this patent application.
I've been using virtual money ever since I was able to pay for this directly from my back account without the need to convert it to real money first. Of course instead of using a new name and symbol thingy my bank simply used the same name and symbol as the real money, and applied a 1:1 conversion ratio.
Well you know what they say...A fool and his money are soon parted. I have never understood it myself, but evidently I didn't give fools enough credit...there are far more of them then there are people who actually think before spending. Its kind of shocking how many will play that stuff though, I signed up for facebook specifically at the request of my mother since according to her "all my relatives are on there". So far there is far less communication than there is updates on when aunt lisa got a new piggy for her virtual farm or when uncle charlie joined some lameass teabagger group. Anyone else hate those damn notices, I really don't care if you achieved a zillion points on some bejeweled game and I really doubt many others do. Its not that I am anti-social I'm just anti wasting my time and brain cells.
im
As for virtual currency, I do remember buying credits to pay for play time on Mechwarrior with CompuServe back in the day. BBS's used virtual currency for similar things as well. At least with those credits=time the way Zynga and others are doing it people are paying real money to buy things like virtual horses and extra virtual coins for a virtual casino game that pays out virtual prizes...I guess I'm just out of touch but I just cant see any logic to it at all.
The USPTO does not have (any or) enough patent/trademark clerks to really search out all instances of prior-art and because of the large back log are encouraged to just rubber stamp everything they come across if /they/ (who could be below-average in knowledge about a particular field) don't know of any prior art off-hand.
How about making the USPTO pay the legal bill whenever a patent is invalidated through the court system?
That way, there'd be no immediate punishment for granting bullshit patents. Patents that aren't challenged, wouldn't affect the USPTO's bottom line. But (if successful) would make it free for the challenging party to invalidate a patent. It would be a great incentive to watch general quality of issued patents, and perhaps hire enough people / raise fees to cover the actual required effort. If an important patent means a bigger legal bill when invalidated, that would help to pay more attention to patent applications with (potentially) wide impact.
I'm not a fan of patents in the 1st place, but weeding out the many nonsense-patents that are on record, would be a good start. Especially those nonsense-patents that patent trolls uses as beating stick, and that cost society a lot more (down the line) than hiring a few qualified patent clerks.
Zynga was founded in 2007, Facebook was founded in 2004, I ran a virtual currency casino in 2003, and even before that, there were already some standalone slot machines built by Linden Lab itself. WTF? :)
being offtopic!
This patent should fail on two counts, not only is there prior art but this patent is obvious, not only to an expert in the field, but to a complete novice in the field.
The truth is that all men having power ought to be mistrusted. James Madison
Magic the Gathering Online went live in 2002. You buy "tickets" which you can use to trade, enter tournaments, etc. And you can win stuff playing those tournaments. I'd say that falls under the gambling with virtual currency category.
Our "real money" is as virtual as the virtual currency.
"virtual currency purchased with real money for use in a gambling context" Isn't this the definition of an online casino chip? Maybe prior art?
So I guess Showbiz Pizza, Gameworks, and basically every arcade (and some east coast beach boardwalk redemption game parlors) on the planet doesn't have prior art "non-refundable" (non-redeemable) currency with the tokens they use for games?
Has anybody actually read the patent application or is everyone too busy trolling their point of view on patents in general ?
I read it and as far as I can see the "innovation" is that you can't convert the virtual currency back into real currency. It's a bit thin and too generalised to be granted a patent on as far as I can figure out.
Unless I'm missing something it really is that simple and obvious.
Online Bingo sites have been doing this for 20 years....
-DML
I hope the prior-artiness of this is obvious even to the Patent Office, but in case not...
All the claims I read include the qualifier "where the virtual currency is not redeemable for real currency", probably to exclude LindenBucks as prior art. Worst case, you could get around this the same way purveyors of offline virtual currency (coupons, etc.) do to comply/avoid various laws. On each virtual token: "Cash value 1/zillionth cent"
Caveat Emptor is not a business model.
TFP document is fairly straight forward. From the background section:
[0007]In the case of gambling-type games, the ability to simply "cash out" by selling to the game operator would, in many jurisdictions, constitute regulated (and possibly illegal) gambling. Furthermore, permitting one player to effectively "cash out" by selling to another player may also run afoul of gambling laws or regulations. Consequently, in some cases, players want to play gambling-style games, but without the regulated gambling aspects.
Thus the crux is almost subscription based. Its gambling with no expectation of renumeration from winning. Except perhaps, the ability to continue playing if one has "won".
In post Patriot Act America, the library books scan you.
The fact that people have patented even more outrageously stupid shit. At this point, I wouldn't be surprised if they got the patent. Remember that USPTO is no longer taxpayer funded and hasn't been since '93, so their livelihood comes from people filing patents.
There is no -1 Disagree.
Zynga should fix their security first, before they deal with other crap. Things like preventing Chinese gamers from stealing other gamer's virtual cash and perhaps ... perhaps using reverse proxy servers.
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Don't video poker and other casion games have this and had this for at least 30+ years. When you put cash in one how many times does a number show up under Credits?
here are some things that I think flip the bill of previous art though some of these things don't fit with the "on the internet". Subway, Arcade (chuck e cheese anyone?), golf ball machine (at driving ranges) tokens. I don't care if it's online or not though, it's still the same thing... it's a token. The idea of a token has been around forever. But knowing how our patent system works, this will get pushed through somehow. I listed the tokens above because I have witnessed many a token or ticket that on it said "no refunds", basically saying, you are not getting your money back from that token/ticket, so it sounds just like this patent to me. Casinos I would count out as you can go to the cashier and get the money back out (at least at real casinos), same with linden labs currency). Now MegaTouch casino games use a virtual token of sorts that turns real money into fake currency that you cannot get back though.
If they get their patent would that not may our "real" currency virtually worthless? Oh wait it already is but then that would also mean they couldn't print any more money could it? Sorry bad pun.
All money is virtual. Coins and notes are storage media, not the thing stored. If you rip a ten dollar bill you don't get dollar coins falling out. At one time a Pound Sterling was redeemable at Her Majesty's treasury for one pound of sterling silver, sterling being a grade of silver. But with the rise of fiat currency, money is a pure abstraction, and the value of it depends entirely on whether you can get others to believe in its worth... a kind of consensual hallucination.
Considering the fact that virtual currency is, at this point, pretty obvious, even if Zynga managed to obtain a patent, it might have difficulty actually enforcing it, if patent litigation ever resulted from this or a similar invention.