The Virtual Currency Fight: Offerpal Sues Kickflip

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.