Fraud and cybersecurity are huge issues with all online activity, and online games are no exception. Game companies have faced many well-known fraud and cybersecurity issues. Some of these matters have resulted in lawsuits and even criminal prosecution. Aside from the legal consequences, fraud and security incidents can have a devastating impact on a game company’s business. Yet, many companies do not focus on these issues until after a problem has already arisen.
It is readily apparent that the increased competition in the gaming space means acquiring and retaining customers has become harder. In gaming, fraud and security issues can lead to play churn and loss of revenue. Join James Gatto of Sheppard Mullin and Matt Cook, Co-Founder of Panopticon Labs, as they discuss these issues and address how companies must understand the types of fraud and security issues that can arise, as well as steps they can take to prevent or mitigate damages in order to avoid adverse consequences.
Recognize the types of fraud and security issues that can and have arisen with online games (including actual examples)
Gain insight into the legal issues implicated by these issues
Explore prior judicial decisions that have addressed these issues
Understand how to prevent or mitigate damage due to these issues through a combination of business, legal and technological means
Jim Gatto is a partner in the Intellectual Property Practice Group in the firm's Washington, D.C. office. He is also Co-Team Leader of the firm's Digital Media Industry and Social Media and Games Industry Teams, and Team Leader of the firm's Open Source Team.
Areas of Practice
Mr. Gatto leverages his unique combination of nearly 30 years of IP experience, business insights and attention to technology trends to help companies develop IP and other legal strategies that are aligned with their business objectives. His practice focuses on all aspects of intellectual property, internet and technology law, including patent, trademark, copyright, trade secret and open source. Mr. Gatto advises clients of all sizes (start-ups to Fortune 100 companies) on key legal and business issues relating to the use of social media, video games, social games and online gambling (gamblification), virtual goods and currency, social networks, virtual worlds, mirror worlds, augmented reality, open source user-generated content, location-based services and gamification.
He has extensive experience advising internet and social media companies on business and legal strategies relating to virtual goods and virtual currency, developing IP protection and monetization strategies, handling terms of service and end user license agreements, development, licensing and partnership agreements, developing DMCA policies, handling DMCA enforcement, privacy and COPPA policies and much more.
Mr. Gatto's practice is national and international, and it encompasses a full range of IP and technology issues, including: patent, trademark, copyright and trade secret litigation; counseling and technology transactions; developing and implementing IP strategies to protect and to monetize IP assets; creating and implementing corporate IP programs; conducting IP audits; conducting complex patent prosecution, including patent appeals, interferences, Inter Partes Review (IPRs), reissues and protests; handling patent enforcement issues, including licensing and litigation; negotiating and drafting technology agreements; conducting IP due diligence in and negotiating IP aspects of mergers, acquisitions and financings; rendering opinions concerning the infringement, validity and enforceability of patents; handling trademark prosecution, domain name, copyright and trade secret matters; handling IP aspects of employment issues; advising clients on legal issues associated with open source software including open source patent issues, licensing, open source compatibility issues, indemnity issues and developing and implementing corporate policies on use of open source software; advising clients on the legality of cutting edge Internet business methods and technology; and advising clients on computer law issues such as computer fraud and abuse and SPAM-related issues.
The idea for Panopticon Labs was born when Matt, a 15-year online banking fraud industry professional and avid video gamer, realized that the fraud experienced by video games mirrored the online fraud and account takeover that banks have been working to prevent for years. As he began to research game companies’ responses to this problem, it became clear that they were devoting significant resources to stopping it, but were primarily relying on outdated, inefficient systems or manual processes that could be easily defeated by fraudsters. Most recently, Matt worked as a senior product manager for Guardian Analytics, a Silicon Valley-based start up that used behavioral analytics to protect financial institutions from fraud. Matt was the product owner for FraudMap ACH, a product that grossed the company $8 million in sales in its first six months on the market. He knows financial fraud and how to design products that work at preventing it, but he also brings 35 years of video gaming experience to the company.
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