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Wilson v. Hasbro, Inc. (WD Ky 3/27/09)

Wilson (bankruptcy trustee for the estate of Indigo Moon Productions, LLC) sued Hasbro and Atari Interactive, Inc. for misappropriation of trade secrets and related claims. The court granted defendants' summary judgment motion.

In 2000, Indigo and Hasbro Interactive, Inc. ("HII"), a former Hasbro division, entered into a agreement setting forth the terms pursuant to which the companies were to explore the possibility of working on the development of interactive games based on the board game "Clue." The agreement provided that the material discussed and developed would remain confidential. Later than same year, HII asked Indigo to develop an expansion for the game that would work on PlayStation 2 systems and personal computers. Indigo then submitted a design proposal to HII. Thereafter, HII was acquired by Infogames and later became known as Atari Interactive. In 2001, Atari told Indigo that it no longer wished to work with Indigo on the Clue project. A few months later, Indigo filed for bankruptcy; Indigo listed game projects as part of its assets. In 2003, Hasbro released a new board game entitled "Clue FX." Indigo claims that this game incorporates aspects of the concepts set forth in its design proposal.

Defendants asserted that there was no evidence that Hasbro used Indigo's design proposal in the creation of Clue FX. Hasbro employees connected to the creation of the game denied any knowledge of the existence of the proposal before the commencement of this litigation. There was evidence that the development of Clue FX was based on the creation of conductive ink technology. Wilson argued that there was sufficient evidence for a reasonable jury to find that Hasbro had access to the design proposal. The design proposal was not created until November 2000 and by that time, HII did not share an office with Hasbro. At that time, HII was in the process of being sold. Further, given the limited nature of the evidence concerning the business contacts of Atari and Hasbro, it was too speculative to infer that Hasbro had access to the proposal. In addition, Wilson failed to show sufficient similarity between the innovative aspects of Indigo's design proposal and Clue FX to provide enough of a circumstantial inference to create a fact issue. The alleged key similarities were that both the design proposal and Clue FX had the players controlling the movements of a detective, while a computer independently controlled the movements of the suspects. But there was evidence showing that this concept was considered by Hasbro in 1999. The other similarities were too tenuous to support an inference of use. When the actual proposal was compared to the game mechanics, most of the alleged similarities were only superficial.

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