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GUEST COMMENTARY GUEST COMMENTARY .. MMA Board Suggests AA MA Board Suggests "Straight Talk" Talk" "Straight On Parallels On T T he Board of Directors of the American Amusement bought by brokers in japan after the normal distribution and heMachine BoardAssociation of Directors of the American Amusement by brokers in Japan after the normal distribution and (MMA) has reviewed the Amusement bought operation have taken place. There is no indication that any Machine Association (AAMA) has reviewed the Amusement operation have taken place. There is no indication that any and Music Music Operators Operators Association Association (AMOA) (AMOA) press press release release Japanese manufacturer knowingly selling directly to a broker, and Japanese manufacturer isis knowingly selling directly to a broker, regarding parallel imports and is puzzled by the apparent who then exports the product to the U.S. for sale. Furthermore, regarding parallel imports and is puzzled by the apparent change of position held by AMOA. No new court cases have change of position held by AMOA. No new court cases have arisen the last last year year toto support support the the position position that that parallel parallel arisen inin the imports are legal to purchase, distribute, or operate. The imports are legal to purchase, distribute, or operate. The only new new court court cases cases this this year year dealt dealt with with the the narrow narrow only issue of whether or not the U.S. Customs Service issue of whether or not the U.S. Customs Service should bebe restricting restricting parallel parallel imports imports into into the the should U.S. This case, which is currently before the U.S. This case, which is currently before the Supreme Court, deals only with an Supreme Court, deals only with an administrative procedure of the U.S. administrative procedure of the U.S. Customs Service, Service, not not with with the the Customs question of the legality of parallel question of the legality of parallel imports. imports. the case case ofof Nintendo Nintendo of of America America vs. vs. InIn the El con Industries, Inc. , a federal court Elcon Industries, Inc., a federal court inin Michigan ruled that the distribution of parallel Michigan ruled that the distribution of parallel imports of a Nintendo product was clearly a imports of a Nintendo product was clearly a copyright infringement of a Nintendo game. In the case copyright infringement of a Nintendo game. In the case Nintendo vs. vs. Bill Bill Faith Faith doing doing business business asas Faco Faco West, West, ofof Nintendo which also dealt strictly with the illegal importation and which also dealt strictly with the illegal importation and sale ofof another another Nintendo Nintendo parallel parallel product, product, aa permanent permanent sale injunction was obtained prohibiting the further importing, sale, injunction was obtained prohibiting the further importing, sale, and distribution of Nintendo grey market products. Faco West and distribution of Nintendo grey market products. Faco West also provided a substantial dollar settlement to Nintendo. There also provided a substantial dollar settlement to Nintendo. There has been no federal court case that has ruled that the has been no federal court case that has ruled that the importation or distribution of parallel printed circuit boards importation or distribution of parallel printed circuit boards are legal. legal. are Further, additional U.S. laws, such as the trademark laws Further, additional U.S. laws, such as the trademark laws and the U.S. smuggling laws, can be violated when parallel and the U.S. smuggling laws, can be violated when parallel boards are imported and distributed. boards are imported and distributed. The AMOA release states that parallel imports arise because The AMOA release states that parallel imports arise because of "contractual arrangements manufacturers have with their of "contractual arrangements manufacturers have with their licensees that are not being complied with." MMA feels that licensees that are not being complied with." AAMA feels that this is not an accurate statement. Most parallel imports are this is not an accurate statement. Most parallel imports are who then exports the product to the U.S. for sale. Furthermore, U.S. and andJapanese Japanese manufacturers manufacturersconsider considerthis thisaajoint jointproblem problem U.S. and have addressed it together. and have addressed it together. Once again, MMA is confused by AMOA's press release Once again, AAMA is confused by AMOA's press release and we strongly disagree with with it.it. We We feel feel that that we strongly disagree and operators should be given "straight talk" on on operators should be given "straight talk" parallels. AMOA can best serve its members by parallels. AMOA can best serve its members by encouraging them them toto comply complywith with the the law lawand and encouraging by honoring the legitimate copyright and by honoring the legitimate copyright and trademark rights of U.S. companies. We trademark rights of U.S. companies. We encourage the AMOA board to encourage the AMOA board to reaffirm itsits statement statement adopted adopted inin reaffirm April 1986. In that statement AMOA AMOA April 1986. In that statement invited "manufacturers, distributors, and invited "manufacturers, distributors, and operators to combat counterfeiting,piracy piracyand and operators to combat counterfeiting, parallel importation which threatens threatens our our parallel importation which survival." MMA is fighting this battle and we urge survival." AAMA is fighting this battle and we urge AMOA toto not not retreat retreat from from itsits April April 1986 1986 position position toto AMOA oppose domestic use of parallel products. oppose domestic use of parallel products. [Editor's note: note:An An operator operator sent sent usus aa copy copy of ofan an article article [Editor's from the Buffalo Law jourmtl that he feels may /Jave some from the Buffalo Law Journal that he feels may have some bearing on the question of parallel imports. 111e ;Jrticle l';Jme bearing on the question of parallel imports. The article came from one of many operntors who vehememly oppose copied from one of many operators who vehemently oppose copied games and bo;Jrds and would never opernte them but ;Jre games and boards and would never operate them but are confused about the issue of p;Jrallel imports. We /Jave asked confused about the issue of parallel imports. We have asked AAM4 to study the document :md respond to it. We have AAMA to study the document and respond to it. We have printed the the article article elsewhere elsewhere inin this this issue issue and and are "re awaiting "waiting printed AAM4 5 reply. We will print that response tt11en it is "vailable. AAMA's reply.theWe subject will printofthatparallel responseg:unes when itisis available. Although extremely Although the subject of parallel games is extremely controversial, there "re few test mses to b"se decisions 011. controversial, there are few test cases to base decisions on. If you have any doubt "bout what you :Jre buying. it mn't If you have any doubt about what you are buying, it can't hurt to check it out before becoming " statistic in the b:lttle hurt to check it out before becoming a statistic in the battle para/le/games.] games.} ofofparallel AAMA 112 PLAY METER/ August 1987 112 PLAY METER/August 1987