Video Game Law Blog

January 01, 1991

(This is an archived case summary)

Numerous states sued Nintendo under antitrust laws. The parties agreed to settle, and drafted a settlement agreement. The Attorneys General of all 50 states objected to certain provisions in the settlement agreement, and brought this action. In the agreement, Nintendo had agreed to give $5 coupons to every person who bought a Nintendo game between June 1st, 1988 and December 31st, 1990. Nintendo would also pay monetary damages in the order of $3 million to the Attorneys General for use in antitrust enforcement, as well as $1.75 million in administrative costs. The Attorneys General also relinquished their rights to sue Nintendo for antitrust infringement during the relevant time period.

The court concluded that the settlement agreement was fair due to the fact that the negotiations had been conducted in good faith and at arms length.

State of New York v. Nintendo of America, Inc.
1991, US Dist. Ct., SD NY
775 F. Supp. 676
KEYWORDS: anti-trust – Nintendo – settlement