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Summary:

Offerpal Media, a Fremont, Calif.-based startup that links virtual currency from social games to real-world marketing deals, is suing startup Kickflip, alleging breach of contract, misappropriation of trade secrets and unlawful business practices, among other claims, according to court documents. Kickflip, headquartered in San Jose, Calif., […]

offerpal-logo Offerpal Media, a Fremont, Calif.-based startup that links virtual currency from social games to real-world marketing deals, is suing startup Kickflip, alleging breach of contract, misappropriation of trade secrets and unlawful business practices, among other claims, according to court documents. Kickflip, headquartered in San Jose, Calif., is the creator of social games payment engine Gambit.

Offerpal alleges in the suit, which was filed in the Northern California District Court in late April, that Kickflip used Offerpal’s web service for two of its online gambling applications — Sports Bets and Bet Arcade — and applied the information it procured about Offerpal’s business model towards developing Gambit. If the court documents are any indication, the case will be an intriguing one to follow. From the filing:

[The] Defendant, as set forth below, misrepresented its intentions in forming a relationship with Offerpal, and then used the information and trade secrets learned in the course of the relationship to develop and improve Defendant’s own competing service.

Aside from the lawsuit, it’s been a pretty good year for Offerpal. As we previously noted, the company received $15 million in funding in February, when many VC firms were limiting their investments amid the struggling global economy. Offerpal said at the time that it was continuing to generate annual revenue of $30-$40 million.

By Jennifer Martinez

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  1. [...] first reported in GigaOm, the suit alleges that Kickflip temporarily used Offerpal’s services for the purpose of [...]

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  2. Yikes. This seems kind of insane.It looks to me like KickFlip started as a FB apps company. They used Offerpal. They didn’t see the future that promising developing FB apps, so they looked for a new business to pivot into. I’m guessing they recieved crappy service from Offerpal and thought of 1000 ways to meet this market need better and got to work on it. So far this sounds like 10,000 other startup stories. See a need or a sleepy player and work to out-innovate and solve the need. Now Offerpal is seeing their hyper-cushy margins impacted by this scrappy player and what better solution than sue? From the part of the complaint cited, Offerpal will have to prove that KickFlip knowingly entered into their agreement with the intent to obtain trade secrets. Yeah, good luck proving that. Morons.

    Full disclosure: I, like the other 99% of the startup scene out here know Noah Kagan. I’ll add that I have no personal knowledge of any of these details since my conversations with noah have revolved mostly around indian burritos.

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  3. [...] first reported in GigaOm, the suit alleges that Kickflip temporarily used Offerpal’s services for the purpose of [...]

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  4. [...] first reported in GigaOm, the suit alleges that Kickflip temporarily used Offerpal’s services for the purpose of [...]

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  5. [...] first reported in GigaOm, the suit alleges that Kickflip temporarily used Offerpal’s services for the purpose of [...]

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  6. [...] first reported in GigaOm, the suit alleges that Kickflip temporarily used Offerpal’s services for the purpose of [...]

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  7. [...] first reported in GigaOm, the suit alleges that Kickflip temporarily used Offerpal’s services for the purpose of [...]

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  8. [...] first reported in GigaOm, the suit alleges that Kickflip temporarily used Offerpal’s services for the purpose of [...]

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  9. [...] first reported in GigaOm, the suit alleges that Kickflip temporarily used Offerpal’s services for the purpose of [...]

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  10. [...] filed suit against Kickflip, the company behind the Gambit payment engine. As first reported in GigaOm, the suit alleges that Kickflip temporarily used Offerpal’s services for the purpose of [...]

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