Play Meter

those alfected. It should not have been
a secret agreement. one which is
unsatisfactory to operators." Van
Brockel said.
Van Brockel pointed out that
OMAA had been asked to support the
original proposal of a SSO one time tee
on new jukeboxes and a one time tee
of 525 tor used ones. The association
had garnered support tor this proposal
and " now we have egg on our !ace."
said Van Brockel. commenting on the
agre ement being made with no
advance notice. "Those we contacted
tor support of a proposition are not
likely to be as willing to listen to us in
the future." he said.
Van Brockel summed it up. "Our
biggest goal is making N.tlOA aware
that i1 legislative negotiations are
scheduled again. we want to be
involved. not ignored."
•
Nintendo wins against
King Kong claim
N intendo o f America. Redmond.
Washington. has won a counterclaim
against Universal Studios. Inc. Univer-
sal had originally tiled a trademark
infringement action seeking overS 100
million dollars. claiming that Nintendo
had infringed on Universal's rights to
King Kong by introducing the popular
game Donkey Kong in 1982. Universal
demanded that Nintendo cease all
production of Donkey Kong and g ive
Universal all pro!its. Universal also
threatened various Nintendo licensees
with litigation.
One of the licensees was Coleco.
who had the license tor the home
ve rsion of Donkey Kong. Coleco. due
to other business matters involving
Universal and unable to take the risk of
litigation. settled with Universal. subse-
quently paying Universal over SS
millio n in royalties !rom the sale of
hom e video cartridges of Donkey
Kon g .
Nintendo. according to general
counsel Howard Lincoln. was out-
raged at the threats. "We felt they
( Universal ) were trying to extrad
money !rom N intendo and we were
determi ned to tight it to the end."
Nintendo had requested a sum-
mary judgment ( a judge studies the
evidence and makes a ruling without
g oing to a trial ) and it was granted by
Judge Robert Sweet of the United
States District Court in New York. who
d ismissed Universal's claims. He also
found tha t Universal had no rights to
King Kong. A federal court of appeals
PLAY METER. September 1. 1985
a11irmed Judge Sweet's dismissal of
the claim.
Nintendo then !iled the counter-
claim tor tortious interference with its
licensees. unjust enrichment. vicarious
copyright infringement. punitive
damages. and attorney tees. In his
opinion issued at the July 29 trial.
Judge Sweet found that Universal had
commenced the litigation against
Nintendo in bad faith and had falsely
asserted rights in King Kong which it
knew it never had. He also found that
in its zeal to cash in on the success of
Donkey Kong. Universal had infringed
on Nintendo's Donkey Kong copyright
and had wantonly interfered with Nin-
tendo's Donkey Kong licensing pro-
gram by threatening licensees with
spurious litigation. Nintendo was
awarded attorney tees. actual and
punitive damages against Universal.
The award is in excess of one million
dollars.
The judge noted in his award of
attorney's tees when the complaint of
this action was tiled. Universal knew
that the allegations of the sweeping
ownership of King Kong were unsup-
ported by the rights Universal actually
possessed. Universal used the lawsuit
as part of a larger elfort to acquire
some portion of the profits derived
trom .. .Donkey Kong. Universal and
(Universal's president and chief
operating officer Sidney Jay) Shein-
berg. viewed corporate litigation as a
" profit center." and the known insut!i-
ciency of the claims asserted did not
inhibit the use of litigation where the
opportunity tor profitable settlement
existed."
The judges comments came !rom
Sheinberg's boast to Nintendo prior to
litigation. as he attempted to force a
settlement. that Universal's litigation
department was a profit center and
that Nintendo had better start saving
money tor attorney tees.
In commenting on the victory.
Lincoln noted. " It !sa nice victory. It is a
case of a small company standing up
to a big company and winning. It's a
situation where you truly !eel that
justice has been done."
Coleco has tiled a suit against Uni-
versal to recover the SS million it has
paid Universal.
•
Kramer focuses
on locations
M . Kramer Manufadurtng Com-
pany. Lakewood. New Jersey. has
embarked on a unique marketing
KIDDIE RIDE
OPERATORS
•••
"Here 's Solid State Sound"
Solid State Lighting
.. .Add attra ct llghttng to your units
and increase profits ...
KIDDIE RIDES
We carry
a complete line
of kiddie rides by:
• ••
AUT Y
ESIGN
NGINEERING
Call or W.dte:
P.O. Box 295 • Bus. 54 South
Eldon, Missouri 65026
1-314/392-7964
1-314/392-3374
11