Axiom Zen Defeats Lawsuit Targeting ‘CryptoKitties’

Boston – July 11, 2018 – Cooley advised Axiom Zen on its successful resolution of a trade secret lawsuit targeting its popular blockchain game, "CryptoKitties." Judge Janis L. Sammartino denied the plaintiff’s attempt to secure an injunction – in part because the case was not likely to succeed on the merits – and hours later the plaintiff dismissed the case. Partner Adam Gershenson led the team advising Axiom Zen.

The lawsuit, filed by Starcoin, alleged that "CryptoKitties" stole the idea for a celebrity partnership with Stephen Curry. Cooley and Axiom Zen proved that "CryptoKitties" was in discussion about introducing CurryKitties with Appmoji a month before any interactions with Starcoin.

“Licensing celebrities is used in countless industries. The plaintiff has not demonstrated what, specifically, is unique or secret about its own celebrity licensing idea,” said Sammartino during the proceedings. Sammartino also indicated that the idea had indeed been used everywhere: “Toothpaste, tennis shoes, 'CryptoKitties.'”

Sam Gharegozlou, president of Axiom Zen, said in a news release that they “knew this case was without merit, and tried not to let it distract us – it’s clear the judge had the same attitude.” As for Cooley’s representation, Gharegozlou said, “it turns out someone can defend Steph Curry after all.”

"CryptoKitties" captured the public's imagination when it launched in 2017, maintaining its position as the most-used dapp (decentralized app) on the Ethereum network, with peak usage accounting for more than a quarter of network traffic. More than 1.5 million wallets and $25 million have been transacted via "CryptoKitties" – showcasing how blockchain technology can be used beyond cryptocurrency. 

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