Authors

Resources

Publications

Tags

RSS Feed

 RSS 2.0

Archives

Disclaimer

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

» Patents

Patent Compliance Group sues Activision

Gamasutra.com reports that a group called the Patent Compliance Group has filed a "qui tram" action against Activision in a District Court for the Northern District of Texas, which apparently allows for members of the public to sue on behalf of the government and potentially be awarded all or part of the damages that it claims. The lawsuit is reportedly alleging that Activision intentionally deceived the public by mislabelling Guitar Hero 5, Band Hero, Guitar Hero Smash Hits and DJ Hero with patent numbers which had patent descriptions that did not cover the scope of the products, and that Activision used the labels "Patent Pending" and "Patent Applied For" when that was not the case.

It appears that the damages sought are of not more than $500 for each violation, meaning that each unit sold could incur a penalty of up to $500, half of which the Patent Compliance Group is said to be claiming for itself, and half of which would reportedly go to the U.S. government.

Coverage at Gamasutra

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

Controller Patent Problems Still Rumbling for Sony

An interesting and complex case was reported on GamePolitics last week, alleging patent infringement as well as fraud, conspiracy and attorney malpractice against Sony, PDP/Electro Source and their attorneys.

According to the plaintiffs, Craig Thorner and his company Virtual Reality Feedback, the defendants attempted to use Mr. Thorner's patent for force feedback technology to gain a tactical advantage in Sony's battle with Immersion and appeal from the resulting $82M judgment.

Thorner claims that the lawyers for Sony and PDP "contrived to take advantage of Thorner's inexperience and lack of resources in order to (i) obtain a patent license from Thorner on extremely favorable terms, and (ii) induce Thorner to testify against Immersion." A number of serious allegations are made in the claim, including that Sony deliberately hid its partnership with PDP from Thorner in order to keep the licensing fees low. Thorner was also eventually sued by Immersion, and was found to have been an unreliable witness by the judge in original Sony case.

Coverage at GamePolitics and Law.com. A copy of the claim is available here.

Our coverage of the Sony v. Immersion suit is available here.

Nintendo Wins Another Patent Battle - Sony and Microsoft to Follow?

A lawsuit by Fenner Investments Ltd. of Texas against Nintendo alleging patent infringement has been dismissed by U.S. District Court. Fenner claimed that Nintendo infringed a 1998 patent relating to analog joysticks with its Gamecube and Wii. The judge granted summary judgment in favour of Nintendo on March 17, 2009, but has yet to rule on the merits of the case against Sony and Microsoft, also named in the suit.

See our earlier coverage here.

Coverage also available here and here.

PALTALK HOLDINGS VS. MICROSOFT

PalTalk Holdings has instituted legal proceedings against Microsoft on the basis that Microsoft's Halo and Xbox infringe its patents related to "controlling interactive applications over multiple computers".

Microsoft is challenging the validity of the patents and PalTalk's claim that the patents are worth $90 million.

These patents were originally registered by MPath Interactive who had many meetings with Microsoft regarding this technology.

The Washington State Patent Law Blog reports that Microsoft's motion for a partial summary judgment has been denied on the basis that Microsoft "has not met its burden of showing that the two patents were anticipated by clear and convincing evidence".

Sources: Gamasutra

and
Boston.com

Sony, Nintendo and Nokia Sued for Patent Infringement

More fun with patents! This time, Texas-based Wall Wireless LLC is alleging that Sony, Nintendo, and Nokia have infringed its patent with Sony's PSP, Nintendo's DS and Nokia's N81, N82, N93 and N95 mobiles, as well as certain real-time online multiplayer games such as Mario Kart and WipeOut Pulse. Wall Wireless' US patent was issued in 2003 (patent #6,640,086 if you're so inclined), and claims that by "using an apparatus like a cellular telephone, an operator is able to create a message by singing into the apparatus or by pressing buttons on the apparatus as he listens to background music presented by the apparatus. By pressing buttons, the operator is able to generate sounds as if he was playing a musical instrument."

According to the Edge website, which obtained the court filing, Wall is claiming irreparable harm unless an injunction is issued, and of course seeks damages and all its costs and expenses. The filing states that each defendant received a notice of the patent in question "at least as early as October 2008", and that "as a result of Defendants' infringement of the "086 patent, Wall Wireless has suffered monetary damages that are compensable ... by no less than a reasonable royalty."

Coverage can be found here.

Patent Troubles for Sony

Submitted by Karine Bellavance

Sony has been ordered to pay $18.5 million to Agere Systems following a successful patent infringement lawsuit filed in 2006. Agere Systems alleged that Sony violated its "wireless local area network apparatus" patent. Agere's patent covers the storing of headers in music files on a memory chip. It is reported that a Texas jury found that Sony wilfully infringed on the patent and that it unlawfully used the technology in the PlayStation Portable and certain other Sony products.

Coverage at GameDaily.com

Nintendo Controllers Banned After Bid for New Trial Rejected

U.S. District Judge Ron Clark has rejected Nintendo Co’s bid for a new trial and forced the company to either post a bond or put royalties in escrow to avoid a ban in the US on some of its controllers. The bid was made by Nintendo in an effort to overturn a May 2008 decision wherein it was held that some of Nintendo’s Wii and GameCube Controllers infringed on patents owned by Anascape Ltd. Judge Clark’s ban will not come into force until Nintendo’s appeal to the U.S. Court of Appeal for the Federal Circuit has been heard. The potential ban will only affect sales of Wii Classic Controller, WaveBird controller and Nintendo GameCube controller. In rejecting Nintendo’s bid, Judge Clark found that there was sufficient evidence on the trial record to support the jury’s finding as well as their damage award of $21 million.

Anascape sought a ban on the controllers because they want to enter the controller market but cannot because Nintendo has “clogged the channel”. Nintendo denies both the validity of Anascape’s patent and that their controllers use Anascape technology.

Coverage here (Gamedaily).
Our previous coverage here.

Submitted by Sylvie Lang, Summer Student

Konami sues Viacom over ROCK BAND

According to a Bloomberg report, Konami filed suit in Marshall, Texas, Federal Court on July 9, 2008 against Harmonix Music Systems, its parent company Viacom and Viacom’s MTV Networks Co.

Konami Corp., the Japanese creator best known for it development of the “Dance Dance Revolution”, “Karaoke Revolution” and “Metal Gear Solid” video games, is claiming that Harmonix Studio’s “Rock Band” video game infringes on a number of US patents which it registered in 2002 and 2003. Those patents relate to “simulated musical instruments” and a “musical rhythm-matching game”, which Konami first introduced nearly a decade ago in its “DrumMania” and “Guitar Freaks” series. Harmonix, of course, has used instrument-shaped peripherals in its “Guitar Hero” and “Rock Band” video games, both of which have been widely successful.

Konami is seeking monetary compensation (reports do not specify the amount sought), as well as a court order prohibiting Harmonix from continuing to sell the allegedly infringing products. Harmonix is reportedly extremely surprised by Konami’s actions and is preparing itself to defend the claim.

Coverage here (Gamasutra)

Submitted by Tania Da Silva, Articled Student

Court Upholds $21M Patent Infringement Verdict Against Nintendo

The verdict in favour of Anascape Ltd., originally handeded down on May 14, 2008, was upheld by the U.S. District Court for the Eastern District of Texax, Lufkin Division, when it denied Nintendo's motion for a reduced verdict.

At issue were a series of patents owned by Anascape relating to video game controllers. A jury determined that various Nintendo controllers infringed those patents.

Coverage at: The Earth Times

Nintendo and Nyko in Nunchuk Fight

Nintendo has sued Nyko Technologies Inc. over its Wii accessory, the wireless Kama Nunchuk. In a suit filed in US District Court in Seattle, Nintendo alleges that Nyko’s remote "wholly appropriates the novel shape, design, overall appearance and even the color and materials used in the Nintendo Nunchuk controller." Nyko has denied any violation of Nintendo’s intellectual property.

In addition to accusing Nyko of trademark and patent violations, Nintendo is seeking damages and profits earned as a result of the infringements.

Nintendo’s Wii Nunchuk is the motion-sensitive controller used with the popular system, but is attached to the main controller by a wire. Nyko also makes other peripherals for use with the Wii, including another wireless remote and a wireless Telecaster-ish guitar for GHIII.

Coverage at GameSpot and Game Daily.
Nyko home page is here.
UPDATE: Patent Arcade also has coverage here.
Submitted by Michael Mjanes

XBOX doesn't violate Alcatel-Lucent Patent

Microsoft is no doubt breathing a sigh of relief after a jury ruled that the XBOX 360 didn't violate an Alcatel-Lucent patent for coding video frames. On the other hand, the jury also ruled that Alcatel-Lucent didn't violate a number of Microsoft patents.

Patent infringement cases are becoming increasingly common in the video game industry. Many developers resent the trend, but the reality is that many developers and publishers are turning to patents to protect their inventions. This is requiring all developers and publishers to consider patent searches for many aspects of their games--especially in light of the fact that patents now cover many elements of gameplay or game development which are widely used in the industry.

More on the Microsoft/Alcatel-Lucent case (Seattle PI).

Capcom Seeks Declaration over “Dead Rising”

Submitted by Michael Mjanes

Fans of zombie movies will undoubtedly recognize this old chestnut: a protagonist, barricaded in a curiously weapon-rich building, surrounded by zombies, must use any and all means available to stay alive. Sound familiar? Could be George A. Romero’s 1979 opus “Dawn of the Dead” (or its 2004 remake). It could be Peter Jackson’s 1992 gorefest “Dead Alive”, or 2004’s quietly brilliant “Shaun of the Dead”. In fact, it could be any number of re-tellings of that classic “man vs. the undead” narrative.

It could also be Capcom’s 2006 award winning game, “Dead Rising”. The game, in which a hero is stranded for three days in a mall infested with zombies, shares a number of similarities with Romero’s “Dawn of the Dead”. Too many similarities, charges The MKR Group, holder of the IP rights to “Dawn of the Dead”. Even prior to the release of “Dead Rising”, MKR approached Capcom and accused the game of infringing MKR’s copyright and trademark. The parties were unable to resolve the dispute and as a precaution, Capcom included a disclaimer on the front of its packaging stating: “this game was not developed, approved or licensed by the owners or creators of George A. Romero’s Dawn of the Dead.”

On February 12, 2008 Capcom filed for a declaratory judgment to prevent the MKR Group and New Line Cinema from asserting their intellectual property rights. In papers filed in the California District Court, Capcom claims that any similarities between the game and the movie are “based wholly on the unprotectible idea of humans battling zombies in a shopping mall.” Capcom goes on to say that there are “literally dozens of other video games featuring a protagonist battling hordes of flesh-eating zombies”, and neither MKR’s copyright in the film, nor any mark, is infringed by the game. Capcom further asserts that because of the disclaimer that accompanied the game, there was no confusion among consumers between the film and the game.

Nintendo and Sony Sued for Violating Controller Patents

Nintendo and Sony have been the latest video game manufacturers to be accused of infringing patents in producing video game controllers. Copper Innovations Group has commenced lawsuits in Pennsylvania alleging that Nintendo and Sony infringed a patent Copper filed in January 1996.

Nintendo may face additional claims as a video has been released of a “motion controller” being used by a former employer of Midway Games in 2000, several years before Nintendo released its famous Wii motion controller.

Sony previously settled another claim for a controller-related patent infringement as did Microsoft. The amounts of these settlements ($86 million paid by Sony and $26 million by Microsoft) were significant and definitely highlight the value of patents.

More coverage at Gamasutra and Kotaku

Apple Files Gaming Interface Patent Application

Apple has recently filed US patent application no. 20070279394 for "Techniques for Interactive Input to Portable Electronic Devices." The application discloses a technology that will allow users to play games using the touch screens on iPods, iPhones, etc., and also to use the same touch screen to control non-game functions nearly simultaneously.

Coverage at Maxconsole.
For those who enjoy reading patents, the patent application is here.

Guitar Hero III and Guitar Freaks: Much Ado About Patents

It appears that patent issues between Activision’s new Guitar Hero III title and Konami’s Guitar Freaks may have been resolved.

The 9 patents listed on the Official Xbox Magazine demo version of Guitar Hero III are split into two sets - one group relating to the MTV Drumscape electronic arcade machine (which patents were recently acquired by Activision in August, 2006), and a second set that are known to be owned by Konami. Though neither Activision or Konami have commented, the reference to the Konami patents has led industry commentators to speculate that a licensing agreement must be in place between the two companies.

Coverage at Gamasutra(http://www.gamasutra.com/php-bin/news_index.php?story=16014)

Does Nintendo Patent Portend Portable Wii?

In March 2004 Nintendo filed a new US patent application excitingly titled "Game System and Game Information Storage Medium Used for Same", for what looks to be a small hand-held device. That application has just been published (or laid open, as our patent law brethren would say). The patent discloses motion-sensing technology, such that moving the device will have an impact on game play (i.e., in the same way that the wiimote control is used for Nintendo's Wii console).

Nintendo will not comment on whether this patent application reveals the nature of Nintendo's next hand-held game system, or whether it's just something they're experimenting with.

See the patent application at the USPTO site.

Coverage at GameSpot

Immersion Sued By Microsoft For Breach Of Contract

In 2002, Immersion Corporation sued Microsoft and Sony for infringement of its "haptic or force feedback" tactile response technology patents. The 2003 settlement reached between Immersion and Microsoft included the acquisition of licensed rights to use Immersion's technology for $26 million and a stake in Immersion. The case with Sony had not settled at the time the Microsoft suit was settled.

In the complaint filed by Microsoft yesterday (June 18, 2007) for breach of contract, Microsoft claims that Immersion has not lived up to certain terms under the settlement arrangement, specifically, for not paying Microsoft a "refund" payment if Immersion were to settle its case with Sony. In the settlement agreement with Microsoft it was stated that:

"... if Immersion settles the Sony Lawsuit ... for an amount up to $100,000,000, Immersion shall pay Microsoft the sum of $15,000,000. If Immersion settles the Sony Lawsuit for an amount between $100,000,000 and $150,000,000, Immersion shall pay Microsoft an additional amount equal to 25% of the amount of the settlement in excess of $100,000,000. If Immersion Settles the Sony Lawsuit for an amount in excess of $150,000,000, Immersion shall pay Microsoft an additional amount equal to 17.5% of the amount of the settlement in excess of $150,000,000..."

Under the settlement agreement between Sony and Immersion, Immersion provided to Sony a "worldwide, non-transferable, non-exclusive, license under the Immersion Patents" for which Sony agreed to pay Immersion $22.5 million. Additionally, Sony further provided for an "additional option", which if exercised by Sony, would give Sony a further license in respect of non-PlayStation games with a payment to Immersion and a royalty fee for each game sold. This, on top of the over $90 million paid to Immersion in March 2007 by Sony as a result of the 2004 ruling against Sony.

According to Immersion, "[t]he Company has determined that the conclusion of its litigation with Sony Computer Entertainment does not trigger any payment obligations under its Microsoft agreements". According to Microsoft associate general counsel Steve Aeschbacher however,"Microsoft licenses technology both in and out and relies on these agreements to be honored and enforced. Our request to the court is that ... the binding agreement we signed with Immersion be honored".

Coverage at: Todd Bishop's Microsoft Blog and GameSpot

Nintendo Sued For Patent Infringement, Again

Last week in the Federal District Court in Tyler, Lonestar Inventions LP sued Nintendo for patent infringement. Lonestar claims that the Wii uses Lonestar’s patented structure of lining up capacitors in parallel conducting strips. Lonestar has apparently sued other companies for patent infringement (including Texas Instruments and Broadcom) and negotiated licence agreements with each of them.

Just last year Nintendo was sued by Interlink Electronics, Inc. for allegedly violating one of Interlink's patents in the design of the Wii's controller. And there have been plenty other patent lawsuits in the gaming industry lately, including Paltalk's suit against Microsoft regarding Xbox Live, Red Octane's suit against Ant Commandos regarding wireless guitar controllers, and of course Immersion won a $91 million judgment against Sony regarding the force feedback feature of Sony’s Dual Shock Controllers.

Lonestar coverage here (Toronto Star).

LEAPFROG PATENT INVALIDATED

(This is an archived case summary)

In this patent infringement action, Leapfrog Enterprises alleged that the Fisher Price PowerTouch product infringed one of the claims in Leapfrog's patent, which describes an interactive learning device. The patent relates specifically to “an interactive learning device having one or more preferably touch sensitive three dimensional indicia bearing units each representing a number or letter which on touching activates voice synthesis circuitry to audibly produce the name and/or phonetic sounds associated with the indicia bearing unit”. The essence of this patent is a device that allows a child to establish relationships between symbols of letters or numbers and the sounds that are made when speaking those letters and numbers.

The allegedly infringing device was an interactive learning device that looks much like a briefcase when opened. Children place books in the device that have pictures of Sesame Street characters, such as Cookie Monster, can select various modes of operation.

This issue of patent infringement was tried in 2005 and resulted in a mistrial. The parties then allowed the US District Court, District of Delaware, to decide the matter. The District Court held that Fisher-Price had not infringed LeapFrog’s patent because the PowerTouch toy did not allow the child to select letters, only words. The Court also determined that claim 25 of LeapFrog's ‘861 patent was invalid, because it was obvious in light of relevant prior art (including another patent geared towards “providing a voice responsive puzzle game in which various words, sounds or phrases of a nursery rhyme, writing or saying may be randomly selected, actuated and enunciated”). LeapFrog appealed to the Court of Appeals, Federal Circuit.

On appeal, LeapFrog argued that the District Court improperly relied on hindsight in determining obviousness, did not have enough evidence of motivation to combine the prior art references, and ignored the secondary considerations of obviousness. The Court of Appeals applied the recent Supreme Court decision of KSR International Co. v. Teleflex, Inc., 1727 S.Ct. 127 (2007), which held that “[t]he combination of familiar elements according to known methods is likely to be obvious when it does no more than yield predictable results.” The Court of Appeals therefore held that “[a]ccommodating a prior art mechanical device that accomplishes that goal to modern electronics would have been reasonably obvious to one of ordinary skill in designing children’s learning devices. Applying modern electronics to older mechanical devices has been commonplace in recent years.”

The Court of Appeals affirmed the District Courts ruling that Fisher Price’s device did not infringe LeapFrog’s patent, and that the patent was invalid for obviousness.

The case is available here.

Leapfrog Enterprises, Inc. v. Fisher Price, Inc.
May 9, 2007 US Ct. of Appeals, Fed. Cir.
2007 WL 1345333
KEYWORDS: patent infringement - PowerTouch - obviousness
Summary by Byron Yep.

Sony And Immersion Settle Differences, Enter Into Business Agreement

The announcement comes in the wake of a $91 million judgment in favor of Immersion in its lawsuit over Sony's DualShock controllers, which Immersion claimed violated Immersion's force feedback patent. Sony had appealed the decision.

Both companies have expressed enthusiasm over the incorporation of Immersion's advanced vibration technology in Sony's products.

Immersion will still receive the $91 million awarded to it by the court. As well, it appears that Sony will pay Immersion quarterly installments of $1,875,000 from March 31, 2007 to December 31, 2009, as well as other fees and royalty amounts. For its part, Immersion has agreed not to sue Sony or to enforce a permanent injunction it was awarded in March, 2005.

Coverage at: http://shorl.com/gruguprudofapru (Gamedaily)

PATENTS AND GAMES

Gamasutra has an interesting article about the US patent regime and how it does more harm than good, especially in high-tech industries such as video gaming. Note that some of the criticisms raised in the article are not fully applicable to other jurisdictions -- for example, Canada has a more restrictive approach to software patents and business ...

BEST GAME PATENTS

Gamasutra recently published an article on the best game patents of all time. It's well-written and it's an interesting read. The "now and then" comparison at the end is priceless.

Article at: http://tinyurl.com/2stq9z

YES, BUT ARE THE DAMAGES WIIMOTE?

Interlink Electronics, Inc. has filed a lawsuit against Nintendo, claiming that the Wii's controller violates one of Interlink's patents. Lawsuits over controller hardware are not new "? for example, Sony lost a well-publicized cased against Immersion Corporation relating to force-feedback technology in the Playstation's controller (see here ). Given the importance of the Wii's controller to its new console's appeal, Nintendo is no doubt taking the lawsuit very seriously. Whether that means a quick settlement or a drawn-out, knock-down legal battle of the sort that we all love (we video game lawyers, that is) won't be known for a while.

Coverage at http://shorl.com/gedodrijofalu (ars technica)

ALCATEL LAWSUIT AGAINST MICROSOFT HAS (PERHAPS REMOTE) VIDEO GAME CONNECTION

Alcatel has sued Microsoft for patent infringement relating to digital video and communication network technology. What does this have to do with video game law, you ask? Well, Alcatel is in the process of acquiring Lucent Technologies Inc. Lucent has also started several lawsuits against Microsoft for patent infringement, including one action which claims that the XBOX 360 infringes Lucent's video-decoding technology (see our post here ). A Microsoft spokesperson has stated that Alcatel's recent lawsuits relate to the patent dispute between Lucent and Microsoft (including, of course, the 360 action).  And there you have it.

Coverage at http://shorl.com/dutomuduprope (Seattle Post-Intelligencer)

SGI SUES ATI OVER GRAPHICS CHIP

Silicon Graphics Inc., newly escaped from Chapter 11 bankruptcy protection, has launched a patent infringement action against chip-maker ATI Technologies. SGI claims that ATI's Radeon graphics chips infringe one if SGI's US patents (patent no. 6,650,327, aptly titled 'Display system having floating point rasterization and floating point framebuffering"?) relating to enhanced graphics processing. SGI has licensed its patent to several of ATI's competitors.

The complaint seeks an injunction and unspecified damages.

SGI Press Release  http://shorl.com/boneradrubopu

Coverage at http://shorl.com/bapipotovofri

KONAMI WINS EUROPEAN PATENT APPEAL

The European Patent Convention says that schemes, rules and methods for playing games, and programs for computers, cannot be patented. However, the European Patent Office has taken a broad approach to that restriction, such that certain patent claims have been allowed even though they seem to fit within the list of unpatentable material.

Most recently, the EPO's Technical Board of Appeal has allowed certain claims in a patent application by Konami relating to a guide system for identifying player-controlled characters and the direction of the nearest team-mate.

The EPO examination division originally rejected the claims because the only portion that was arguably patentable under the EPC was anticipated by prior art. The Technical Board of Appeal overturned that decision and ordered that the patent be granted.

Whether game software is patentable is a tricky question "? different jurisdictions take different approaches to whether software or business methods are patentable, and there are many philosophic debates about whether software or business methods should be patentable at all. The EPO decision gives Konami certain patent protection in Europe, and may open the door for additional game-related patent applications in Europe.

Coverage at http://shorl.com/fapifremefeku (Gamasutra)

Text of the EPO Decision http://shorl.com/fyjusumubryba

 

THE ANTS GO MARCHING ONE BY ONE TO COURT

Red Octane (the publisher of Guitar Hero) has sued the Ant Commandos for selling wireless guitar controllers for use with the game.  Red Octane claims Ant Commandos copied Guitar Hero packaging and advertising materials, in violation of Red Octane's copyrights and trade-marks. They also claim false advertising with respect to Ant Commandos' claims that the guitar controllers work properly with the PS2.

Interestingly, Red Octane is facing IP lawsuits for its own activities. Konami claims that Red Octane's dance game Groove violates Konami's patents relating to Dance Dance Revolution, and KnuckleBonz claims Red Octane's use of GUITAR HERO violates KnuckleBonz's trade-mark rights in that name.
Coverage of the marching ants is here  http://www.shorl.com/fadredrufrarine (Gamespot)

ANOTHER GAMING PATENT LAWSUIT

Online instant chat company Paltalk has sued Microsoft for patent infringement. The lawsuit claims that Xbox Live violates two of Paltalk's US patents which cover online communications.

This lawsuit follows several other major patent lawsuits in the gaming industry, including Agere v. Sony (relating to PSP and PS2 technology), Immersion v. Sony (relating to Sony's Dual Shock controllers), Yahoo! v. XFire (relating to Yahoo!'s Game Prowler IM application) AVG v. Atari (relating to AVG's patent for spherical panning) and Lucent v. Microsoft (relating to the 360's method of decoding MPEG-2 files).

It's also interesting from a Microsoft perspective, considering that earlier this spring Microsoft was awarded its 5,000thUS patent. 
Coverage of Paltalk lawsuit here  http://www.shorl.com/hamelibakubi

MS DEPLOYS COUNTER HACKING EFFORTS IN KOREA

Microsoft is confident that the DVD firmware hack will be countered by its Xbox Live updates.

Sales of security upgraded consoles in Korea have increased over the past month after hackers tinkered with the embedded DVD software drive to allow copied CDs to run on the machine. Xbox is confident that the problem will be 'neutralized"? through software updates (detected and prompted for installation upon connecting to Xbox Live).

Apparently more consumers are attempting to bypass Xbox's security in order to be able to use cheaper pirated software. The additional cost for a modified console is said to be approximately KRW 70,000 (60 Euro) and users are tempted by the saving of about KRW 25,000 (21 Euro) from the purchase of pirated software.
coverage at http://shorl.com/gybrestigribinu

TABLE OF VIDEO GAME CASE LAW

We're pleased to report that our blog now contains a table of video game law cases.  It's a work in progress (we have a bunch more cases to add) but we're so excited that we just can't wait to share.  So here's the link  http://www.davis.ca/community/blogs/video_games/files/blogtable.htm

Keep checking back for updates.  There's also a link on the homepage of the blog. 

SONY GETS SUED AGAIN

Agere Systems recently sued Sony for patent infringement, claiming that technology in the PSP, PS2 and possibly the PS3 violate Agere's patents. Agere is claiming that Sony knew about the patents and intentionally violated them. Under US law, intentional patent infringement can result in the damages being tripled. 

Sony has denied the claims and is arguing that it actually has licences to 7 of the 8 patents. Sony is also challenging the patents, claiming that they should not have been granted. 

Sony is no stranger to patent infringement lawsuits. In March 2005, a U.S. District Court ordered Sony to pay Immersion Corp. over US$90 million in damages for patent infringement. Immersion alleged that Sony's 'DualShock"? controllers for PlayStation 2, which produce vibrations and rumblings in response to what is happening in the game, infringed Immersion's patent in a similar technology, and a U.S. District court found that the PS2 console, the DualShock controllers, and the 47 games which offered DualShock features, were an infringement of Immersion's patent. Immersion settled a similar suit with Microsoft in 2003.

The last couple of years have been full of patent litigation in the game industry. Another well-known example is that in 2005, Yahoo! and XFire became embroiled in a patent infringement fight over the use of online messaging technology. Yahoo! had obtained a patent for its GameProwler IM application, which allows gamers to see when their friends are playing online and communicate with them. XFire later developed its own in-game IM application which Yahoo! alleged had been created by an ex-Yahoo! employee now working at XFire. Yahoo! sued XFire for patent infringement and the two companies spent most of 2005 in a protracted legal battle, eventually settling in early February 2006.

This has encouraged game developers and publishers to be a lot more cautious about the technology they incorporate into their games. It's also encouraged many publishers to start increasing their own patent portfolios"?if only for defensive purposes.
Coverage of Agere at  http://www.shorl.com/fyhodisegudu (Gamespot).

STREAMING LAWSUITS

Stream Theory, which provides streaming application technology, has filed a patent infringement suit against three other companies (Softricity, AppStream and Exent). Stream Theory has a Games on Demand series with over 550 PC games available.

One of the defendants "? Extent "? is known for providing games on demand; the other two defendants provide other forms of streaming software.

Coverage at http://shorl.com/jefyfafrifredy (Gamasutra)

MORE RUMBLINGS BETWEEN SONY AND IMMERSION

A while ago, Immersion Corporation was awarded damages of over $80 million in its patent infringement lawsuit against Sony (see our coverage here and here ). The lawsuit involved the force-feedback technology which Sony used in its PS2 controllers. Immersion also sought an injunction prohibiting Sony from making or selling related technologies in the US. Sony is currently appealing the injunction decision.

At the recent E3 convention, Sony announced that its next generation controllers would not include the rumble feature because of possible interference with the new controller's tilt sensors. This decision is not sitting well with gamers and industry insiders, who view the removal of force-feedback controllers as a step backward.

Immersion's President has stated publicly that Immersion is willing to help Sony with force-feedback technology that can co-exist with the tilt sensors, if Sony settles the patent litigation on Immersion's terms.

Coverage at http://www.gamasutra.com/features/20060517/murdey_01.shtml (Gamasutra)

and at http://www.gamesindustry.biz/content_page.php?aid=17141 (GamesIndustry.biz)

MICROSOFT SWINGS BACK AT LUCENT

Lucent sued Microsoft in March 2006, claiming that technology inthe Xbox 360 used for decoding MPEG-2 files infringes Lucent's patent. Microsoft has now filed a countersuit claiming that two of Lucent's patents are invalid and alleging that Lucent has in fact infringed some Microsoft patents. Microsoft has also voiced its annoyance that Lucent started litigation without engaging in 'meaningful licence negotiations"?. That being said, lawsuits are themselves a form of negotiation.

Lucent has not yet sought an injunction preventing the sale of the XBOX 360, but doing so would certainly raise the stakes in the dispute and apply additional pressure to Microsoft.

Coverage at http://shorl.com/boprifugryvoko (GamesIndustry.biz).

XBOX 360 PATENT INFRINGEMENT?

Lucent Technologies has sued Microsoft for infringing Lucent's US patent for 'Adaptive Coding and Decoding of Frames of Fields of Video"?. Lucent has claimed that the XBOX 360's method of decoding MPEG-2 files violates the patent.

Video game patents have been hot news lately, with Immersion's $82 million win against Sony regarding the rumble feature in Sony's dual shock controllers, Atari's agreement to pay $300,000 to AVG to settle a lawsuit regarding AVG's patent for spherical panning, and Yahoo!'s lawsuit against Xfire regarding in-game instant messaging technology. 

These cases are a good reminder that game companies can't always include standard techniques (such as 3D panning and zooming) or technology (such as force feedback) in their games and consoles, even if everyone else in the industry is doing it. 
Coverage at  http://www.shorl.com/gadrimelogrybo (Macworld)

SHAKEN BUT NOT STIRRED

Last year we reported that a jury awarded Immersion Corp. $82 million in damages after deciding that the rumble feature in Sony's Dual Shock controllers violated two US patents owned by Immersion.  Sony was also ordered to pay a licensing fee of 1.37% per quarter on sales of PlayStations, Dual Shock controllers and various PS2 games that use the technology. 

Predictably, Sony wasn't very pleased with the decision. So Sony sought to overturn the ruling by arguing that Immersion tried to conceal the fact that Immersion had entered into discussions with a third party who invented similar technology before Immersion invented its rumble technology.   The US District Court for the Northern District of California recently ruled that Sony failed to prove any concealment. In the court's view, Sony could have discovered this information during the course of the lawsuit if Sony had chosen to do so.

Sony will now continue onward with its appeal of the original decision.
Coverage at  http://www.shorl.com/belyporagrogo (CNet)

MICROSOFT OBTAINS 5,000th PATENT

Microsoft has reached an impressive milestone by obtaining 5,000 US patents. And, most interestingly from our perspective, the fateful 5,000th patent is a game-related one. US patent no. 6,999,083 (titled 'System and method to provide a spectator experience for networked gaming"?) covers a technology allowing people to join a game as spectators, and thus allows consumers to tune into a video game in the same way that they would a sportscast.

Microsoft press release at http://shorl.com/dymyprylusesy

US Patent No. 6,999,083 at: http://shorl.com/dyjekesufresto

Coverage at http://shorl.com/byrefosyrere (Gamasutra)

ATARI PAYS $300,000 TO SETTLE LAWSUIT

In August 2004, American Video Graphics sued Atari and various other publishers for infringing US Patent No. 4,734,690 (a method for spherical panning). A similar lawsuit was also filed against console manufacturers.

Atari's latest financials reveal that the company paid $300,000 to settle the lawsuit. As part of the settlement, Atari received an irrevocable, nonexclusive, worldwide license to use, publish, sell, etc. products covered by the patents.

This lawsuit and others (such as the Immersion lawsuit involving force feedback technology) are a good reminder that developers and publishers can't always include standard techniques (such as 3D panning and zooming) or technology (such as force feedback) in their games and consoles, even if everyone else in the industry is doing it. 
Coverage at   http://www.shorl.com/boprehygrufrery (Gamasutra)

NINTENDO PATENT OFFERS REVOLUTION INSIGHT?

The US Patents and Trademarks Office granted Nintendo a new patent earlier this month US Patent No. 6,955,606, with the catchy title 'Game information storage medium and game system using the same"?. Since we think everyone should have the opportunity to read patents, here is a description from the patent itself

'"?the invention relates to a game information storage medium and a game system using the game information storage medium. The game information storage medium stores in a first game machine, a game program for a second game machine having an architecture different from the first game machine architecture and an emulator program for converting the second-game-machine game program to be executed on the first game machine. By executing the second-game-machine game program on the first game machine, a game can be enjoyed on the first game machine which would not otherwise have been possible."?

In short, the patent covers a technology which allows a later-generation console to play games from older consoles using emulation software. Some commentators believe this technology may be integral to Nintendo's next-generation Revolution console, which Nintendo promises will be able to play a back catalogue of older Nintendo games.

Coverage at http://shorl.com/babrypustodrije

Patent details at http://shorl.com/gyjudrigrystugi

XFIRE/YAHOO! SETTLEMENT NEAR?

We reported earlier this year ( here and here ) about a patent lawsuit between Yahoo! and Xfire concerning instant messaging technology. Xfire had a summary judgment motion scheduled for December 9, in which Xfire was going to argue that its technology does not infringe Yahoo!'s patents and therefore that Yahoo! does not have a cause of action. However, Xfire has recently requested that that hearing be postponed. Apparently the parties have agreed on key settlement terms, and hope to negotiate a final settlement themselves.

Reaching a mutually-agreeable settlement is often the main impetus behind lawsuits; the fact remains that parties are often not willing to come to the table until a court action is underway.

Coverage at http://shorl.com/dameduprefryju

CONSOLE SKIN PATENT

The US patent office recently granted a US patent (#6,932,341) for a 'video game system auxiliary cover system"?. The system allows gamers to change the appearance of their consoles and controllers by snapping the new cover over existing hardware.  

Wow.
Patent is here  http://www.shorl.com/gididrisufrotre

MORE INSANITY

Here's a further update about Nintendo's 'insanity patent' . Another reader brought to our attention the fact that the 'Call of Cthulu"? paper-based RPG, which has been around for years (OK, I played it in high school) has a character sanity system, in which characters' sanity degrades as they are exposed to supernatural events and creatures. The astute reader pointed out that there have been several Cthulu-based computer games in the past.

But that's not all "? a little digging on GameSpot reveals that 'Call of Cthulu Dark Corners of the Earth"? is slated for release for the Xbox in October 2005. And one of GameSpot's previews says the following

'The game will feature a sanity system that's based on the Call of Cthulhu pen-and-paper role-playing game, but it's probably more akin to the system found in Eternal Darkness for the GameCube. Basically, as you encounter different horrors and things, you'll begin to slowly lose your mind, as you start suffering from panic attacks, hallucinations, and more."?

This raises some interesting questions do this game's developers need a licence from Nintendo for this in-game insanity system? If so, do they have one? Might there be a patent action in the future? And would the issued patent hold up in light of the prior art, including the Cthulu RPG?

Thanks to our readers for sharing their thoughts with us.

INSANITY UPDATE

Thanks to one of our readers, who followed up on our recent 'insanity patent"? post to point out that Nintendo's 'Eternal Darkness Sanity's Requiem"? used an in-game sanity meter. The game was released in 2002; Nintendo's patent application was filed in 2000, which would have been when the game was in development.

GameSpot's review has good things to say about the sanity meter, so you can see why Nintendo wanted to get some protection for that feature.

INSANE IN THE V-GAME

An astute Slashdot contributor has called attention to US patent no. 6,935,954, which issued August 30, 2005. The patent, owned by Nintendo, is titled 'Sanity system for video game"? a game system whereby a game character's sanity level is affected by different occurrences. Game play is affected (for example, by the character not responding to the player's commands, by the character having hallucinations, etc.) as the character's sanity level decreases.  In-game effects include (and we're not making this up) "enormous roar that emits from a tiny rodent (mouse or rat)" and "faint maniacal laughter (that gets louder and louder as the character draws deeper into insanity)".

The character's sanity is affected by encountering 'a game creature or a gruesome situation"?, and the effect of each such encounter depends on factors such as whether the character is prepared for the encounter or whether the character is rested. Luckily, sanity can also be improved (in the game, at least) by locating 'mind aids"?.

We are all used to games which track a character's physical health, so tracking mental health isn't too big a stretch. The patent acknowledges this fact, but goes on to explain that 'when circumstances beyond imagination are encountered, the brain must attempt to deal with the improbable and impossible as reality"?. We can't argue with that. And we'll just have to wait and see whether this in-game insanity is good or bad for players' mental health.

Wait . . . is that faint maniacal laughter I hear?  Excuse me while I go look for a mind aid.

Coverage at http://shorl.com/hystylehekigre

Copy of US patent at http://shorl.com/guganorinamy

360 Hardware Requires Licenses

Microsoft will require 3rd-party accessory manufacturers to obtain a license to make their products function with the upcoming Xbox 360 console, and will enforce this requirement with a security mechanism through which the 360 will validate the accessories when they are used.  Although Microsoft has a licensing program with the original Xbox, it is optional though a license must be obtained to display the Xbox logo on a current-generation accessory, no such permission is required if the accessory does not contain Xbox branding.  With this move, Microsoft has positioned itself to both regulate 3rd-party 360 hardware content and, of course, receive more money.

Coverage at http://www.shorl.com/jejudeprupristu

EUROPEAN PARLIAMENT REJECTS SOFTWARE PATENT LAW

It looks like the EU's on-again off-again attempt to create a single European-wide method of patenting software is off again, for good. The bill would have given patentees EU-wide protection for computerized inventions (including computer programs when the software is used in the context of realizing inventions). The European Parliament has rejected the bill, and the European Commission (which drafted the bill) has stated it will not submit any more versions.

Proponents of the failed bill claim this means continued inconsistency and uncertainty with regard to software patenting in Europe. Others are pleased with the bill's failure, saying it would have stifled development and resulted in expensive legal battles over unclear laws.

As a result, patents will continue to be subject to national laws throughout Europe; game developers seeking patent protection in Europe will not have a one-stop-shop, but will have to proceed to seek patents in individual countries.

Coverage at http://shorl.com/hutudihevohy

and at http://shorl.com/digrahajurofo

SOFTWARE PATENTS ARE STILL ALIVE IN THE EU

It appears the EU will not be successful in preventing pure software from being patented in the EU. The legislative amendments that would have done this were rejected this week. 

Video game and other software patents have been a hot topic lately, especially since Sony was recently ordered to pay Immersion was $90M in for infringing Immersion's 'vibro-tacticle"? technologies, as we reported here

Coverage of the EU legislation is at http://www.shorl.com/fopruhykuhopry  

 

PROTECTING THE PSP IN EUROPE

The PSP, Sony's handheld answer to the Nintendo GameBoy and DS, has not yet launched in Europe and has had its launch date delayed more than once. ElectricBirdLand is one of the online stores importing Japanese PSPs to Europe for retail sale, prompting Sony to respond this past April with cease and desist orders. However, according to Dan Morelle, the managing director of ElectricBirdLand, Sony may not have the European intellectual property protection it needs to stop importers. Morelle reports that 'PSP"? is used by UK firm Owtanet Ltd for their 'Publishing, Shopping and Profiles"? software, and Owtanet claims to have registered a trademark in PSP in 2000, and that legal proceedings are currently underway. Furthermore, Morelle claims that Advanced Micro Devices (AMD) is contesting Sony's use of 'UMD"? to describe its optical discs, on the grounds that it is confusingly similar to 'AMD"?. Morelle states that ElectricBirdLand will continue to sell PSPs in Europe until Sony can establish how it is being harmed by import sales.

Full coverage at http://www.shorl.com/budadadrobyki

Consequences Of Nakeder Tecmo Games

May 18 was a sad day for video game lawyers, because on that day US Federal Judge Charles Kocoras permitted a settlement of a case between Tecmo and video game modders. NinjaHacker.net, whose webmasters Mike Greiling and Will Glynn were named as defendants in the lawsuit initiated by Tecmo, offered a community to create and distribute mods for Tecmo games such as Dead or Alive 3 and Dead or Alive Xtreme Beach Volleyball. Tecmo, famous for making electronic near-naked characters fight and... play extreme beach volleyball, argued that NinjaHacker.net's mods violated US intellectual property and unfair competition laws, and of course the DMCA. Now that the case has settled, we may never know the legal accuracy of Tecmo's claims.  As video game lawyers in search of truth and justice, we can thus only hope that this settlement collapses and everyone involved is ruined.

Full coverage at http://www.shorl.com/fugesolatusta

WHOLE LOTTA SHAKIN' GOIN' ON

Immersion has settled its patent infringement dispute with Radica over Immersion's patented force feedback technology. The fact that Immersion was awarded $90M in damages against Sony for infringing the patent probably helped move the negotiations along.

Coverage here  http://www.shorl.com/fydybeprajofro

IBM SLOW ROASTING ITS GOLDEN GOOSE?

Jim Stallings, vice-president intellectual property and standards, revealed IBM's position on the patent process, particularly that of the United States. Stallings alleges that due to the dramatic increase in the number of filings of patents around the world, examiners' ability to inspect each has been reduced, resulting in a bias toward granting patents and ultimately leading companies to hoard patents or to seek protection for unoriginal works. Stallings also rightly claims that current intellectual property law is not properly constructed to govern the fruits of development communities. Consequently IBM, with its more than 10,000 patent applications in the USA alone, and which was granted 3,248 patents in 2004, is calling for a more stringent patent process.

Patents, of course, are big business in the video game industry.  Recent examples include the award of $90 million against Sony for infringing vibro-tactile patents (see our coverage here ) and Yahoo!'s lawsuit against Xfire regarding online chat applications for games (see our coverage here ).
Coverage of the IBM story athttp://www.shorl.com/guvomadrejadu

PLAYSTATION FOR DESSERT

You can't have any PlayStation if you don't eat yer meat! How can you have any PlayStation if you don't eat yer meat???

Sony was just awarded US patent #6,729,337 for a method of inducing sensory experiences by sending ultrasonic pulses to the brain. In addition to allowing gamers to 'smell"?, 'touch"? and 'taste"? their games, the method might enable blind or deaf gamers to play too.

Sadly, the invention will do nothing to improve the skills of guys like us whocansee, although you wouldn't know it if you watched us play Halo 2... 

Coverage at  http://www.shorl.com/fudofotifrely

Patent at http://www.shorl.com/bogefabudrudry

SONY SHAKEN BUT NOT STIRRED

A US District Court has confirmed a jury's decision requiring Sony to pay damages for patent infringement to Immersion Corp. The jury ordered Sony to pay $82 million in damages (see previous coverage ) for infringing patents relating to 'vibro-tacticle"? technologies that cause controllers to vibrate in response to what is happening in the game. Immersion's infringement lawsuit names the PS2 console, Sony's DualShock controllers, and 47 games. 

The judge increased the damage award to $90.7 million to account for interest and issued a ban on the sale of PS2 consoles; however, that ban has been stayed pending Sony's appeal of the decision. Sony has paid Immersion $7 million in compulsory licence fees, and will continue to pay such fees until the parties settle or the decision is overturned.

Immersion settled a similar dispute with Microsoft over the Xbox console and controllers in 2003.

Coverage at http://shorl.com/fyhonunytovo

And at http://shorl.com/denesumykity

XFIRE FIRES BACK

Last month we reported that Yahoo! had sued online gaming company Xfire for patent infringement. Yahoo! claimed that a former Yahoo employee (who now works for Xfire) developed online messaging technology that violates Yahoo!'s patents.

Xfire recently responded by counterclaiming damages for unfair business practices. Xfireclaims Yahoo! is trying to force it to sell or licence technology at less than market rates.

 
Coverage at  http://shorl.com/behobyfagupre

YAHOO! SUES XFIRE FOR PATENT INFRINGEMENT

Yahoo! recently sued start-up Xfire for patent infringement. Yahoo! claims Xfire's online chat application for gamers violates Yahoo!'s GameProwler instant messenger application. Both applications allow users to see if friends are playing games online. 

Coverage at http://shorl.com/gykutydupunu

Yahoo! patent at  http://shorl.com/helepelejihu

 

ONE GAME PATENT . . .

Microsoft has filed a US patent application for a system that will help consumers determine whether their PCs can run a particular piece of software. The system involves a "capability tool", which examines a PC's components and assigns the PC a numerical rating, and an independent ratings board which assigns ratings to software applications and games. If the two ratings match, the PC will be able to run the software in question. This system should help gamers in their eternal struggle to determine whether their PCs can handle the latest games.

Coverage at http://shorl.com/jagepasugribri

. . . AFTER ANOTHER

Sony has also filed a US patent application, this one to do with wirelessly connecting portable game machines (ie Sony's new handheld PSP) with various Internet-connected devices. The application discusses various scenarios, including connecting the portable game device to a remote server for processing software that's too complex for the handheld device; storing content (games, movies, music, etc.) on central servers for uploading to the handheld device when required; and e-commerce transactions such as buying games online through the handheld device. This patent application is likely part of Sony's strategy to make the PSP a general portable multimedia device rather than a mere game machine.

Coverage at http://shorl.com/geratykynybu

PSST... WANNA LEARN HOW TO BUILD AN XBOX2?

A new US patent might describe key elements of the XBOX2, including a system of multiple processors which work together to generate realistic geometry while simultaneously managing other routine game functions. 

Coverage at http://shorl.com/fefregronusypry Patent application at  http://shorl.com/fesefostofibru

PSST... WANNA LEARN HOW TO MAKE IT SHAKE?

A jury has awarded Immersion Corp. $82 million in damages after deciding that the rumble feature in Sony's Dual Shock controllers violates two US patents owned by Immersion. Sony was also ordered to pay a licensing fee of 1.37% per quarter on sales of PlayStations, Dual Shock controllers and various PS2 games that use the technology. 

Coverage at http://shorl.com/jahypobrebryhe

Patents at  http://shorl.com/bugolonapore

And  http://shorl.com/gerivanyhidi

 

3D GAME GRAPHICS PATENT INFRINGEMENT?

Several major video game publishers have been sued for patent infringement in respect of their 3D graphics display techniques. The U.S. patent in question protects a system for 3D spherical panning. If successful, the lawsuit could affect a broad range of gaming companies.

Coverage at http://shorl.com/fomapobenofe

TILT AND TUMBLE LICENCE FIGHT

(This is an archived case summary)

The Court considered whether a licence authorizing the use of a patent to make and sell a product protected a third party purchaser from liability for patent infringement for that same use. Jacobs, the owner of a patent related to a tilt-sensitive video game controller, alleged that Nintendo's “Kirby Tilt and Tumble” infringed his patent. The technology for Nintendo's tilt-sensitive controller was supplied by a company called Analog. Jacobs had granted Analog an irrevocable licence which included (1) the right not to be sued for infringement of the patent; and (2) the right to”sell...micromachined accelerometers for use in tilt-sensitive control boxes”. The court said that the clause granting Analog the right to sell its accelerometers for use in tilt-sensitive control boxes barred Jacobs from interfering with that right by prohibiting Analog's customers from using the accelerometers for the authorized purpose. The Court said that the licence gave Analog's customers an implied sublicence to use Analog's accelerometers to make, use and sell tilt-sensitive control boxes that infringed Jacobs patent without interference by Jacob.

The case is available here.

Jordan Spencer Jacobs v. Nintendo of America, Inc.
2004, US Ct. of Appeals, Fed. Dist.
2004 US App. LEXIS 10515
KEYWORDS: licence - patent - third party producer
SUMMARY BY: Sarah Ciarrocchi

THE GAME NAME

(This is an archived case summary.)

Nintendo produces the GameBoy as well as a number of accessories including the GameLink, GameCamera and the GameBoy Printer. Battery Technology Inc. ('BTI”) developed and produced a device that recharges batteries for hand held gaming devices. BTI called its device the “GameBuddy”. After having its patent approved, BTI entered into production and distribution of the GameBuddy. Despite having notice of the patent application and grant, Nintendo waited until BTI was in production before bringing an action for passing-off and patent infringement.

BTI voluntarily halted the production and distribution and attempted to defend its actions by alleging that there was no infringement of the GameBoy line of patents, nor any passing-off. It also alleged that even if there was, Nintendo had acquiesced to the detriment of BTI and should therefore pay damages to BTI.

In a motion to strike portions of BTI's pleadings, the court explored BTI's equitable defence and held that BTI was in fact using equity as a “sword, not a shield”. The pleadings referring to these equitable defences were struck.

Nintendo of America, Inc. v. Battery Technologies, Inc.
2001, Fed. Ct. of Canada, Trial Division
2001 FCJ No. 914
Keywords: patent infringement - passing off - GameBuddy - equitable defences
Summary by: Adam Nott

GE V. Nintendo

(This is an archived case summary.)

GE sued Nintendo, claiming that several of Nintendo's game systems (including the Gameboy) infringed GE's patents. The lower court ruled in favour of Nintendo on summary judgment. GE appealed and lost.

The first patent, the ‘899 patent, describes a switch to toggle between a signal from the television antenna and a signal from a video record player. Nintendo didn't infringe this patent because its systems “bypass” the signal (creating a path of lower resistance), as opposed to system described in the patent which “disrupts” the signal (establishing a high series impedance).

The second patent, the ‘659 patent, describes a synchronization signal generator. In dispute was whether Nintendo's systems produce “drive signals” and whether they contain vertical counters “clocked by a signal which is advanced in phase”. The court found that Nintendo's systems produce “drive signals”, however, they do not literally infringe the vertical counters “clocked by a signal which is advanced in phase” since they do not send a signal to the clock line but instead send a signal through the input line. On the issue of equivalent infringement, the court found that GE failed to meet their burden of presenting sufficient evidence so that a reasonable jury could find that Nintendo's systems infringe the ‘659 patent under the doctrine of equivalents.

The third patent, the ‘125 patent, describes a device for retrieving stored picture information from memory on a computer and displaying the information to a standard television screen or other display device. Nintendo put forward three arguments with respect to the ‘125 patent. First, Nintendo argued that its system does not use a conventional DMA circuit as described in the patent. The court found that since the DMA circuit is not part of a means-plus-function limitation, GE's infringement claims are not limited to the DMA circuit described in the written description and its equivalents. Since Nintendo admited that its systems use dedicated hardware to transfer the data, a reasonable jury could construe this as a DMA request. Second, Nintendo argued that its system omits a specific gating structure required by the patent. The court found that Nintendo's system replaces the “AND” gates that connect the stages of the line counter to the data bus in the patent, with tri-state buffers. The court determined that the “AND” gates and tri-state buffers are interchangeable for this purpose, thus Nintendo's argument failed. Third, Nintendo argued that its systems do not contain a bit map display device as required by the patent. The court found that the only reference to a bit map display in that patent was located in the preamble of Claim 1. However, the court stated that, “it is clear that the inventors were working on the particular problem of displaying binary data on a raster scan display device and not general improvements to all display systems”. Therefore, the invention is restricted to display devices that function by displaying bits. The court found that Nintendo's systems display images by using characters, while the patent describes the display of images bit by bit. Therefore, the systems are significantly different and Nintendo's systems do not literally infringe the patent. In addition, GE could not argue equivalents since the patentee waived coverage of character generating systems during prosecution of the patent, thereby enacting prosecution history estoppel.

The Court of Appeals affirmed the grant of summary judgment of no infringement of each of the three patents. The Court of Appeal also reversed the lower court’s ruling of invalidity for anticipation for the ‘899 patent.

General Electric Co. v. Nintendo Co, Ltd. and Nintendo of America, Inc.
June 2, 1999
US Ct. of Appeals, Fed. Cir.
179 F. 3d 1350
Keywords: patent infringement
Summary by: Chris Bennett

NINTENDO WINS PATENT CASE

(This is an archived case summary)

Nintendo appealed a District Court ruling that awarded Alpex Computer Corporation $253 million in damages (equivalent to a 6% royalty) for patent infringement. In 1974, Alpex patented a new microprocessor-based home video game system that was meant to surpass the computing ability of the Magnavox Odyssey (which could only play one game, called “ball and paddle”, where a dot of light bounced between two vertical lines).

Alpex's invention allowed a home video system to play multiple games, including games with rotating images. This invention was commercialized by Atari, Mattel, and Coleco. The relevant claims of the patent relate to a “means for generating a video signal representing a linear player image device aligned in a first direction” and where those means include a random access memory (RAM) system. This RAM system was superior to the prior art (owned by Okuda) which employed as an alternative a series of shift registers. When Alpex filed its patent application, it specifically outlined the differences between its technology and the Okuda invention.

The court found that Nintendo's invention did not infringe the Alpex patent because Nintendo's system in fact paralleled and improved on the Okuda technology. The court denied a claim construction that would bring the operation of the Nintendo system under the scope of the Alpex patent, as Alpex had already disclosed how its patent differed from the Okuda invention.

Alpex Computer Corporation v. Nintendo Company, Inc.
1996, US Ct of Appeals, Fed. Cir.
102 F. 3d 1214
Keywords: patent infringement - pioneer patent
Summary By: Byron Yep

Electronic Art - Painting By Numbers

(This is an archived case summary)

Edward Gussin, who had invented an electronic drawing and colouring system, tried to claim that Nintendo's “Mario Paint” infringed his patent. Mr. Gussin lost at both the District Court and the Court of Appeals. The Court of Appeals focused on two grounds to dismiss Mr. Gussin's claim. First, Mr. Gussin did not provide any facts to support his claim. Second, Mr. Gussin's patent specifically related to devices that stored actual colour data on the pixel memory, whereas Nintendo's game used “pointers” connecting the pixel memory to a separate location that stored colour.

The Court of Appeals did not find it necessary to address the other issues the lower court examined. The lower court had found against Mr. Gussin in addition to the above grounds because (1) Mr. Gussin's patent related to a separate hardware device rather than a programmable computer; (2) Mr. Gussin's device had two joysticks rather than one computer mouse; and (3) Mr. Gussin's invention has a “dedicated draw switch”, which Nintendo's system did not have.

Gussin v. Nintendo of America, Inc.
1995, US Ct of Appeals, Fed. Cir.
No. 95-1051, 1995 WL 460566
KEYWORDS: patent infringement - Mario Paint
Summary by: Cheyenne Reese

Pioneer Patent In Jeaopardy Did Magnavox Cheat?

(This is an archived case summary)

This was an action by Nintendo challenging the validity of Magnavox's “Television Gaming Apparatus” patent, issued in 1972, and the infringement claims made by Magnavox against other parties in respect of that patent. All of the Magnavox patents at issue in this case had been deemed valid in previous cases, most notably in Magnavox's ground-breaking action against Mattel in 1982. In the case at bar, Nintendo was claiming that the patent was invalid due to inequitable conduct on Magnavox's part when seeking issue of the patents in the 1970s. Specifically, Nintendo claimed that Magnavox deliberately failed to disclose relevant prior art, deliberately failed to investigate their knowledge of the relevant prior art, and conducted an improper off-the-record meeting with the patent examiner prior to filing one of their patents.

The Court describes the action as requiring a revisit to the early days of the video game industry where a simple ping pong game would be sufficient to capture the imagination of children. The Court expresses a little nostalgia for the Pong Era and says that children nowadays are ”used to sophisticated video games that replicate laser wars and magical kingdoms and boxing matches.”

As any inequitable conduct on behalf of the patentee would vitiate a patent in the United States, the Court was aware this litigation could shake the very foundation of the video game industry, as the Magnavox patents had been termed ”pioneer patents” and were also the subject of numerous lawsuits and licensing agreements. The prior art that the plaintiff Nintendo relied upon was a patent that related to a game called ”Space War” which was developed in 1961 at MIT and played on a PDP-1 computer. The game itself was played at Stanford University in 1963 and witnessed by James Williams, who later ended up working at Magnavox as outside patent counsel.

Luckily for the video game industry, the Court determined that Nintendo had failed to meet their burden in establishing the required knowledge of Magnavox of the materiality, or deliberate and intentional withholding of this knowledge of materiality, of the prior art.

Nintendo of America, Inc. v. Magnavox Co.
1989, US Dist. Ct., SD NY
707 F. Supp 717
KEYWORDS: patent - prior art - pioneer patent
SUMMARY BY: Byron Yep

Pioneer Patent Case Intellivision Infringes

(This is an archived case summary)

Magnavox claimed that Mattel had, through the manufacture, use and sale of Intellivision video games, infringed Magnavox's “Television Gaming Apparatus” patent, issued in 1972. This action was the remaining one out of five which were commenced by Magnavox against various parties. The four other cases settled outside of court.

This was apparently the first patent trial to involve a computer-based video game that embodied a microprocessor. It should also be noted that Mattel did not challenge the validity of the patent it allegedly infringed.

The Court stated that because this was one of the pioneer patents on which the video game industry was based, the technology that was available for the manufacture of games allowed Mattel to create low-cost games with a much greater complexity than what was contemplated in the Magnavox patent. The use of these currently available technologies to create a video game did not alter the basic nature of those games or avoid, because of their increased complexity, the “simpler” Magnavox patent.

The Court pointed to the fact that the Mattel Intellivision game used digital circuitry with a microprocessor, whereas the technology that was disclosed in the Magnavox patent was based on an analog system. The Court determined that these two technologies were fully equivalent to each other within the context of the patent and that the mere substitution of digital circuitry was not sufficient to avoid patent infringement.

Finally, the Court discussed the scope of “pioneer patents” and stated that patent law and the judicial treatment of patent law give these “pioneer patents” the broadest protection. This is because pioneer patents introduce a wholly new device or one of such novelty and importance as to mark a distinct step in the progress of the art, which is entitled to protection despite its role in the “creation” of an industry.
The Court found that Mattel's Intellivision had infringed the Magnavox patent and awarded reasonable royalties.

Magnavox Co. v. Mattel, Inc.
1982, US Dist. Ct., ED Illinois
US Dist. LEXIS 13773
KEYWORDS: patent - pioneer patents - infringement
SUMMARY BY: Byron Yep