Direct Technologies, LLC v. Electronic Arts, Inc.

Electronic Arts (EA) is the creator of The Sims, a popular computer game. EA contracted with a production company called Lithomania to produce a USB flash drive shaped like a “PlumbBob,” a gem-shaped icon from the computer game, to promote a “Collector’s Edition” of The Sims. Lithomania in turn contracted with Direct Technologies (DT) to produce a prototype of the PlumbBob-shaped flash drive. EA approved the prototype, but DT’s prototype was shipped to a company in China to make essentially the same flash drives for $0.50 cheaper per unit than DT proposed.

After DT settled breach of contract claims with Lithomania, DT sued EA under the federal Copyright Act and the California Uniform Trade Secrets Act (CUTSA). The district court granted summary judgment to EA. The district court held that the flash drive was not sufficiently “original” when compared to the Plumb-Bob icon to qualify for copyright protection. The court also held that DT had not taken “reasonable efforts” to keep the flash drive design secret because DT had voluntarily given the prototype to Litho-mania without explicit confidentiality restrictions. EA then moved for attorneys’ fees under each statute, but…