Last month, a jury found mobile gaming company Papaya Gaming Ltd. liable for false advertising for $420 million in actual damages under the federal Lanham Act and New York State law. Papaya competitor Skillz Platform Inc. had alleged that Papaya conducted a multi-year campaign of fraud and false advertising that materially damaged Skillz and the skill-based gaming industry. 

The case may appear, on first blush, to be about the use of bots to play, and therefore whether the games at issue were genuine skill contests, or rather just games of chance. However, the claims in the case were actually premised on more traditional, run-of-the-mill false advertising questions. 

Continue Reading Skill-Based Gaming Companies Face Growing False Advertising Scrutiny

In ruling on a motion to dismiss counterclaims brought under Section 43(a) of the Lanham Act, the District Court of Oregon ruled that statements made by a corporate agent to a journalist may be actionable.

In Skedko, Inc. v. ARC Products, LLC, the defendant counterclaimed for false advertising.  Both plaintiff and defendant manufacture and sell evacuation devices.  Plaintiff’s device is the Sked® Rescue System, “(‘Sked’), an evacuation sled system designed to quickly evacuate wounded people from confined spaces, from high angles, in technical rescues, and in traditional land-based rescues.”  Defendant’s device is the Vertical Lift Rescue Sled, “which is an evacuation device that provides quick transport of a nonambulatory individual in a difficult rescue situation or a confined space.”

Among the advertising that defendant challenged through its counterclaims was a statement by plaintiff’s executive and agent that appeared in the article “Cleared for Takeoff” for the publication Military Medical & Veterans Affairs Forum.  Skedko’s agent told the author of “Cleared for Takeoff” that “an individual person can have an injured person ready for transport in a Sked sled in a mere 20 seconds and that [the agent] could perform this ‘routinely.’”  Defendant alleged that this statement was false because “in reality it takes significantly longer for an injured person to be loaded into and ready for transport into a Sked sled.”Continue Reading Not All Press Is Good Press