Play Meter

imports
parallel imports
on parallel
maximum prison
prison sentence
sentence to
to 5
5 years
years (17
maximum
(17 USC
USC 506
506
(a)
,
18
USC
2319)
.
(a), 18 USC 2319).
Civil penalties,
penalties, although
although attractive
attractive in
in theory,
theory, as
as
Civil
the AAMA
AAMA have
have been
been successful
successful in
in putting
putting con-
con -
the
victed
pirates
in
jail.
To
date,
the
FBI
has
success-
victed pirates in jail. To date, the FBI has success-
pirates. First
First of
of all,
all, it
it is
is very
very difficult
difficult for
for a
a legitimate
legitimate
pirates.
importantly, arrested
arrested importers
importers and
and distributors,
distributors,
importantly,
practical matter
matter provide
provide little
little deterrence
deterrence to
to
a a practical
distributor or
locate and
and bring
the
distributor
or manufacturer
manufacturer to
to locate
bring the
pirate
to
trial
,
and
even
when
this
can
be
done,
pirate to trial, and even when this can be done,
pirates have
have been
been successful
successful in
in concealing
concealing their
the ir
pirates
While the
the copyright
copyright owner
owner might
might get
get a
a
assets. While
assets.
judgment,
it
may
be
an
empty
one
.
Without
crimi-
judgment, it may be an empty one. Without crimi-
nal penalties,
penalties, illegal
illegal manufacturers
manufacturers and
and distributors
distributors
nal
thus have
have little
little incentive
incentive to
to stop
stop their
their infringing
infring ing
thus
activities
.
For
these
reasons
,
the
AAMA
has
activities. For these reasons, the AAMA has
vigorously
pursued
enforcement
of
criminal
vigorously pursued enforcement of criminal
sanctions against
against convicted
convicted pirates.
pirates.
sanctions
The efforts
efforts of
of law-enforcement
law-enforcement authorities
authorities and
and
The
fully conducted
conducted three
three sting
sting operations,
operations, confiscated
confiscated
fully
over $3
$3 million
million in
in counterfeit
counterfe it games,
games, and,
and , most
most
over
some of
of whom
whom have
have been
been convicted
convicted and
and sentenced
sentenced
some
to prison.
prison . In
In September,
Septembe r, 1984,
1984, the
the FBI
FBI confiscated
con fi scated
to
approximately $1
$1 million
million in
in counterfeit
counterfeit games
games and
and
approximately
arrested
five
individuals
in
the
Wash
ington
,
D.C
arrested five individuals in the Washington, D.C., .,
area. In
In April,
April, 1985,
1985, an
an Atlanta
At lanta sting
sting operation
operation con-
con-
area.
ducted by
by the
t he FBI
FBI netted
netted five
f ive arrests;
arrests; the
t he FBI
FBI con-
con-
ducted
fiscated 167
167 illegal
illegal machines
machines worth
worth an
an estimated
estimated $2
$2
fiscated
million. One
One of
of those
those arrested,
arrested , Tim
Tim O'Reilly,
O'Rei lly, a a 23-
23-
million.
year-old Canadian
Canadian citizen
cit izen and
and a a first-year
f irst-year law
law
year-old
student, was
of copyright
infringement
student,
was convicted
convicted of
copyright infringement
(co n tin ued on
on page
page 80)
80)
(continued
AAMA statement only advocacy
AAMA
I think
th i nk the
Statement by
the " "Statement
by the
the American
American
Amusement Manufacturers
Manufacturers Association
Amusement
Association (AAMA)
(AAMA)
Regarding Parallel
Parallel Imports"
Imports" is
is intended
intended to
to be
be a
a
Regarding
helpful comment
on the
the present
present uncertain
uncertain state
state of
of
helpful
comment on
the law
law in
in this
this field,
field, and
and therefore
therefore it it should
should be
be
the
appreciated by
by those
those in
in the
the video-game
video-game business.
business.
appreciated
Unfortunately, despite
despite its
its good
good intentions,
intentions, it
it is
is not
not
Unfortunately,
wholly dispositive
disposit i ve of
of the
the issues,
issues , and
and some
some
wholly
additional
comment
is
therefore
appropriate.
additional comment is therefore appropriate.
of all,
all , the
the AAMA
AAMA statement
statement is
is quite
quite correct
correct
First of
First
in pointing
pointing out
out that
that the
the federal
federal courts
courts now
now uniformly
uniformly
in
accept
the
principle
that
v
ideo
games
accept the principle that video games are
are
protectable under
under the
the copyright
copyr i ght laws.
laws . The
The
protectable
uncertainty over
over the
the copyrightability
copyrightab ility of
video games
uncertainty
of video
games
that existed
existed several
several years
years ago
ago has
has now
now been
been
that
dispelled
by
many
decisions
of
federal
courts.
dispelled by many decisions of federal courts.
Therefore, the
the intentional
intentional sale
sale or
or use
use of
of counterfeit
counterfei t
Therefore,
or "copy"
"copy" games
games is
is copyright
copyright infringement,
infringement, and
and it
it
or
may be
be punished
punished by
by fine
fine or
or imprisonment.
imprisonment. No
No
may
sensible video-game
video-game operator
operator will
w ill want
want to
to deal
deal in
in
sensible
copy games,
games, and
and operators
operators will
w ill want
want to
to assure
assure
copy
themselves that
that their
their suppliers
are not
not furnishing
furnishing
themselves
suppliers are
them
with
copy
games
to
avoid
unnecessary
and
them with copy games to avoid unnecessary and
possibly
very
harmful
problems.
possibly very harmful problems.
The situation
s ituation as
as to
to parallel
parallel importation,
importation ,
The
however, is
is less
less clear
clear than
than the
the AAMA
AAMA statement
statement
however,
makes
it
appear.
There
exist
only
three
reported
makes it appear. There exist only three reported
qecisions; their
is inconclusive;
inconclusive; and
do
decisions;
their analysis
analysis is
and they
they do
not address
address all
all of
of the
the important
important issues.
issues. It
It may
may be
be that
that
not
the position
position forcefully
forcefully advocated
advocated in
in the
the AAMA
AAMA
the
statement
will
eventually
prevail
in
the
federal
statement will eventually prevail in the federal
PLAY METER,
METER, March
Morch 1,
1, 1986
1986
PLAY
courts, but
but in
in February
is still
still too
too early
early to
to tell,
tell,
courts,
February 1986
1986 it it is
and the
the AAMA
AAMA statement
statement must
m ust therefore
therefore still
still be
be
and
regarded as
as only
only a a piece
p iece of
of advocacy
advocacy for
for one
one
regarded
viewpoint, that
that of
of the
the major
major video-game
video-game manufac-
manufac-
viewpoint,
turers who
who oppose
oppose parallel
parallel importation.
im portation.
turers
The CBS
CBS decision
decision (569
(569 F.
F. Supp.
Supp. 47
47 [E.D.
[ E.D. Pa.
Pa.
The
1983)) discussed
discussed in
in the
the AAMA
AAMA statement
statement involved
involved a
a
1983])
license from
from CBS
CBS to
to a
a foreign
fo reign manufacturer
manufacturer to
to
license
manufacture
and
sell
CBS
records
in
a
foreign
manufacture and sell CBS records in a foreign
country. The
The clear
clear intent
intent was
was not
not to
to grant
grant any
any
country.
license in
in the
the copyrighted
copyrighted music
music in
in the
the United
U ni ted
license
States. A
A third
third party
party then
then bought
bought up
up records
records at
at
States.
distress
prices
after
the
licensee's
business
failed
distress prices after the licensee's business failed, ,
and tried
tried to
to circumvent
circumvent the
the original
license by
and
original license
by
shipping the
the records
records into
in to the
t he United
United States,
States, a
a
shipping
market out
out of
of which
which they
they
market
kept
.
Accordingly
,
the
kept. Accordingly, the
copyright infringement.
infringement.
copyright
had been
been intended
intended to
to be
be
had
federal
co
u
rt
fo
un
d
a
federal court found a
In a a second
second case,
case, familiar
fa miliar perhaps
perhaps to
to many
many
In
readers
of
Play
Meter,
N
intendo/
America
sued
readers of Play Meter, Nintendo/America sued
Elcon , a a firm
firm in
in Detroit
Detroit (564
(564 F.
F. Supp.
Supp. 937
937 [E.D.
[ E.D. Mich.
M ich .
Elcon,
1982)). Nintendo
Nintendo had
owned the
1982]).
had owned
the United
United States
States
copyright in
in Donkey
Donkey Kong
Kong and
and had
had indirectly
ind irectly
copyright
licensed Falcon
Falcon to
to make
make and
and sell
sell the
the video
video game
ga me in
in
licensed
Japan ; Falcon
Falcon was
was not
not supposed
su pposed to
to export
export the
the
Japan;
games to
to the
the United
United States
States market.
market. However,
However,
games
Falcon
sold
printed
circuit
boards
for
the
game to
to
Falcon sold printed circuit boards for the game
International, which
which shipped
shipped them
them to
to the
the United
Un ited
International,
States and
appeared to
to the
the court
hat
States
and Elcon
Elcon. . It
It appeared
court t that
Nintendo had
to anyone
Nintendo
had never
never granted
granted any
any license
license to
anyone
(co ntinued on
on page
page 82)
82)
(continued
79
79