Take-Two Interactive Software, Inc., the publisher of the famed and infamous Grand Theft Auto video game series, has filed a lawsuit against PlayerAuctions, Inc., IMI Exchange LLC, and Paiao Network Technology (Shanghai) Co. Ltd. The complaint, filed in the Central District of California, alleges widespread copyright and trademark infringement related to the unauthorized sale of modified accounts used to play Grand Theft Auto V, as well as in-game assets and virtual currency.
According to Take-Two, PlayerAuctions operates an online marketplace at PlayerAuctions.com, which facilitates the sale of the accounts and in-game items generated by using software exploits. The complaint alleges that the defendants profit from these transactions by taking a cut from each sale, encouraging third-party sellers to offer illegal goods through its platform, and offering “after-sale protection” in case hacked accounts are detected and banned. The suit claims that China-based PlayerAuctions has been notified of its infringement multiple times but has refused to cease its activities.
<iframe width=’100%’ height=’749′ style=’border:0px; max-width: 800px;’ src=’https://www.docketalarm.com/embed/AIAr8P8-EA’ frameborder=’0′ allowfullscreen=’true’></iframe>
These types of cases are not unusual for Take-Two – 30%, a plurality, of their federal litigation of the last decade is filed under the Copyright case type. Take-Two is often the plaintiff, but in some cases they themselves are sued. Law Street covered a lawsuit against Take-Two over the digital recreation of an NBA player’s tattoo in its basketball video games.
Take-Two is seeking damages for copyright infringement, contributory copyright infringement, vicarious copyright infringement, and inducement of copyright infringement. The company is also pursuing claims of trademark infringement, false designation of origin, and intentional interference with contractual relations. The lawsuit aims to shut down PlayerAuctions’ operations related to Grand Theft Auto V and halt what it describes as a “corrupt business model” that harms both the company and players.
The complaint also asserts that PlayerAuctions has knowingly and willfully facilitated the distribution of infringing digital content on an industrial scale. Take-Two’s legal filing seeks not only damages but also injunctive relief to prevent further infringement, arguing that the defendants have made millions of dollars from this illegal activity.
Take Two is represented by Mitchell Silberberg & Knupp.
