Zynga files patent application for virtual game currency

Peter Amsel
October 27, 2010
3 Comments

Zynga-Virtual-Currency-PatentZynga, makers of the number one Facebook app (Farmville) and six of the top 10 apps, has filed a patent application for a virtual game currency. The application stresses that the currency exchange is a one-way street, i.e. real money goes into the system, but cannot be withdrawn. In other words, what flows into Zynga, would stay in Zynga, which neatly sidesteps the issue of what legally constitutes gambling.

Zynga recently signed a five-year deal to use Facebook Credits on most of its games (excluding Texas Hold’Em Poker), so the company isn’t likely to be introducing a new system anytime soon. But Zynga may be able to use the future development of such a system as a bargaining chip in future negotiations on other issues involving the two companies. Facebook is widely assumed to take a 30% cut of transactions utilizing its Credits, so it’s not hard to see why Zynga might want to make up this drain by getting some claw backs in other areas.

SharesPost, a secondary market that allows shareholders in a private company to trade shares, pegs Zynga’s current value at $5.27b.

If you have any further information related to this story that you would like to share with us privately please click here.

Can't get enough CalvinAyre.com? Follow us on Twitter and Facebook, then you'll never miss out on the latest gaming industry news.

Share
Tags: Article, Facebook Credits, patent, virtual game currency, Zynga
Views and opinions expressed are those of the Author and do not necessarily reflect those of CalvinAyre.com
  • http://topsy.com/calvinayre.com/2010/10/27/business/zynga-virtual-game-currency-patent/?utm_source=pingback&utm_campaign=L2 Tweets that mention Zynga files patent application for virtual game currency — Topsy.com

    [...] This post was mentioned on Twitter by Calvin Ayre, Rosalind Wade and James Boyer, Dyiron dela Croix. Dyiron dela Croix said: Zynga files patent application for virtual game currency http://bit.ly/bZctSd [...]

  • http://calvinayre.com/2011/01/06/legal/zynga-facing-legal-action/ Zynga facing legal action

    [...] 2011 was again going to be their year in the social networking stratosphere then today’s news of patent infringement proceedings will be a rude awakening. Think of it like your friend telling you [...]

  • http://calvinayre.com/2011/09/07/legal/virtual-currency-and-its-impact-on-gaming/ Virtual currency and the gaming industry | Legal news

    [...] court case and it just goes to show the uncertainty that currently surrounds virtual currency or zCoins as they are known in Zynga’s case. A Guardian article looked at the online poker industry and how [...]