By Dan Levine and Gerry Shih
SAN FRANCISCO, Sept 14 (Reuters) - Zynga Inc fired back
against rival gaming company Electronic Arts Inc, saying an EA
lawsuit breached a deal between the two that restricted how
Zynga can try to hire the other company's employees.
Zynga's allegations on Friday came as a counterclaim to a
lawsuit filed by EA last month in a San Francisco federal court.
EA had accused Zynga of copying key elements of its popular "The
Sims Social" game for Zynga's own title, "The Ville".
In its lawsuit last month, EA accused Zynga of obtaining
"private" information about the Sims game after hiring three of
EA's top employees shortly before its launch. Zynga is the
dominant publisher of games on Facebook.
Silicon Valley companies often compete hard to attract
talented employees. Sometimes, though, companies have agreed to
refrain from poaching each other's workers in controversial
agreements. In 2010, several companies promised U.S. antitrust
authorities that they would no longer enter into such deals.
In a court filing on Friday, Zynga said it reached a deal
with EA in 2011 with lawful restrictions on how Zynga solicits
EA employees. In exchange, EA released Zynga from legal claims
surrounding its hiring practices, the document said.
Zynga had intended for that information to be blacked out
from public view, but for the judge to be able to consider it as
part of Zynga's legal argument. However, Zynga inadvertently
made those details public in its Friday court filing.
By initiating its lawsuit last month, EA breached the
promises it made in the 2011 deal, Zynga said in the filing.
Zynga declined to comment on the material that was intended to
be redacted.
EA spokesman John Reseberg on Friday called Zynga's claims
"a predictable subterfuge," aimed at diverting attention from
its copying of other artists.
"Zynga would be better served trying to hold onto the
shrinking number of employees they've got, rather than suing to
acquire more," Reseberg said.
According to Zynga's filing, an EA lawyer told Zynga that EA
Chief Executive John Riccitiello was "adamant" about obtaining a
no-hire agreement that would shut down Zynga's ability to hire
EA's employees.
Zynga acknowledged signing a non-monetary settlement
agreement with EA in September 2011 in an effort to head off
litigation, Zynga's filing said.
That deal included "lawful, appropriate and extremely narrow
non-solicit restrictions" in the context of a non-monetary
settlement agreement, according to the filing.
In the filing, Zynga said EA "undertook an anti-competitive
and unlawful scheme to stop Zynga from hiring its employees."
Its general counsel, Reggie Davis, also said in a statement that
EA's copying claims have no merit.
The case in U.S. District Court, Northern District of
California is Electronic Arts Inc. vs. Zynga Inc., 12-4099.
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