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Davis LLP Web Logs or "Blogs" are intended to provide general comments on developments in the law. They are not intended to be a comprehensive review nor are they intended to provide legal advice. Readers should not act on information in the blogs without seeking specific advice on the particular matter. Please contact a lawyer listed on the blog pages for additional details, or to discuss how blog information is relevant to a specific situation.

Video Game Law Blog

» June, 2009

Konami Sued for Discrimination

Konami, who produces Metal Gear, has been sued in Japan by one of its employees. The employee claims she has been discriminated against, alleging that she was demoted and suffered a pay cut after returning from her maternity leave.

The employee seeks the equivalent of $344,000 in damages.

Coverage at: Gamasutra

Kombat over Midway's Assets Begins...and it Could be Mortal

Submitted by Sylvie Lang
Threshold Entertainment, a Hollywood production company, reportedly filed a complaint and an objection to the proposed auction of Midway Games' assets in a U.S. bankruptcy court on June 24, 2009.
It has been suggested that Threshold's claim is an attempt to protect its rights following Warner Bros. Interactive Entertainment's $33 million offer to acquire most of the bankrupt Midway's assets. The production company alleges that it has a perpetual and exclusive license to produce films and television shows based on Mortal Kombat. Consequently, it has been reported that Threshold wants to ensure its intellectual property rights are not unduly acquired by Warner Bros or any future bidder for Midway's assets. Lawrence Kasanoff, the head of Threshold, has reportedly claimed that his company's rights stem from a 1993 agreement with Midway.
A hearing on Midway's proposed asset sale is scheduled for July 1, 2009.
Coverage at Gamespot
Coverage at

Nintendo Co. can Shout Wii over Legal Victory

It has been reported that Nintendo Co. has won the dismissal of a lawsuit instituted by Guardian Media Technologies Ltd ("Guardian"). It was reported that the Texas based plaintiff had alleged that Nintendo Co., in its Wii video-game system, had infringed its patent for a technology used to impose parental controls. The judge allegedly found that the Wii doesn't play movies or television programs, and it does not use a parental-control function that affects the playback of "video programs." Guardian reportedly sued other companies, retailers and electronics makers including Amazon.com Inc., Microsoft Corp., Apple Inc., RadioShack Corp. and Wal-Mart Stores Inc. The court allegedly found that the claims against Nintendo Co. were separate from the claims for relief leveled against the other defendants and that Nintendo Co. should not have to wait for the entire case to be completed for its dismissal.

Coverage at Bloomberg.com

Closure of game exhibit leads to lawsuit

The New York Civil Liberties Union filed a lawsuit in US federal court regarding the closure of an exhibit at the Sancturary for Independent Media. The exhibit featued the game "Virtual Jihadi", a FPS which involves players hunting down George W. Bush.

New York's public works commissioner shut down the exhibit for "purported [city] code violations". The NYCLU disagreed with these reasons, saying the real reason the exhibit was shut down was because the commissioner found it to be distasteful.

A copy of the complaint is available here.

Midway Games Bankruptcy Dispute Settled

Submitted by Sylvie Lang
The legal dispute between Midway Game's unsecured creditors committee and its majority shareholder, Mark Thomas, over the company's bankruptcy has been settled. The creditors asked a Delaware bankruptcy judge to approve the settlement on June 4, 2009. Thomas has accepted a $5 million payment, a fraction of the $30 million secured claim that made him the video-game maker's first ranking creditor. The settlement also eliminates Thomas' $40 million unsecured claim. Thomas will be paid either on the effective date of reorganisation or when the sale of Midway's assets closes, whichever occurs first.
Coverage at Chicago Tribune.com