Game software is late, suit says

A Spokane Valley company that makes bug and pest traps has filed a lawsuit against a Canadian company for taking too long to develop parts of a new software game for bug-loving kids.

Sterling International Inc., based in the Spokane Business and Industrial Park, filed the suit in federal court recently. It alleges Montreal-based Virtools Canada Inc. failed to complete a software project on schedule, causing Sterling to lose potential sales from the game, called BugFarm.

The suit also alleges a Virtools employee posted on the Virtools Web site parts of the game’s software for download. That is a violation of Sterling’s trade secrets, the lawsuit says, noting that as many as 30 people may have downloaded the code.

For 20 years Sterling has produced traps and kits to capture insects without poisons or toxins. The Day-Glo yellow jacket traps that soon will be popping out in yards are one of Sterling’s most recognizable products. Sterling sells its traps internationally; in the United States, it distributes products through retailers such as Wal-Mart and Ace Hardware.

In 2004 the privately held company hired Virtools Canada to develop an insect character controller – software that creates three-dimensional figures of insects that can be moved on a computer screen through game scenarios.

Sterling officials said they chose Virtools because it was considered one of the leaders in 3-D game development.

Virtools agreed to develop the product within eight weeks for $32,000, the lawsuit says.

Bob Loomis, a spokesman for Sterling International, said Virtools didn’t deliver a version of the product until recently.

“We have received a version of the product we wanted, but not the whole thing,” Loomis said. “It’s like ordering a car and finding out you have the engine but are missing the tires and the transmission.”

Sterling hoped to market the game through the same retailers that sell its products. Loomis said the goal was to introduce BugFarm before last year’s Christmas season.

Without the game available, Sterling lost a potentially large amount of money in sales, Loomis added.

John Nelson, a Spokane attorney with Foster Pepper PLLC who is representing Virtools, said the company denies failing to produce the product on time and insists it did not disclose Sterling’s trade secrets.

He also said whatever material may have been downloaded was not part of the Sterling project.

According to Loomis, Sterling decided to enter the game industry to give parents and students a fun way to learn about insects and nature.

“A lot of parents are looking for nonviolent, non-pornographic and educational games for students,” Loomis said. The game has the potential to earn millions in revenue eventually, he said.

Sterling is seeking a trial to determine damages. That sum would include “thousands that have been spent to solve the problems” in the software product developed by Virtools, Loomis said.

One reason for filing the suit, he added, was to accelerate improvements to the Virtools software. Loomis said Sterling has hired Spokane technology company ARO Designs to help finish the product, but he doubts BugFarm will be ready for production in time for the holidays this year.