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NEWS BULLETIN NEWS ... ... Mark Hampton, a San Francisco street operator, has filed a lawsuit against AAMA, Taito Corp., and Taito America. Mark Hampton, a San Francisco street operator, has filed a lawsuit against AAMA, Taito Corp., and Taito America. Hampton's complaint stated that he was concurrently seeking to join his case with the already pending Red Baron case against Hampton's complaint stated that he was concurrently seeking to join his case with the already pending Red Baron case against the same defendants. In that case, depositions are completed and all material was delivered to the judges. A court date has not the same defendants. In that case, depositions are completed and all material was delivered to the judges. A court date has not yet been set. Hampton's complaint charges the defendants with illegally tying the sale of Double Dragon boards with the sale yet been set. Hampton's complaint charges the defendants with illegally tying the sale of Double Dragon boards with the sale video game cabinets, misuse of copyrights, slander, intentional interference with business advantage, boycott, outrageous ofofvideo game cabinets, misuse of copyrights, slander, intentional interference with business advantage, boycott, outrageous conduct, common-law conspiracy, and unlawful, unfair, and fraudulent business practice. In addition, Hampton seeks a declaraconduct, common-law conspiracy, and unlawful, unfair, and fraudulent business practice. In addition, Hampton seeks a declaration from the court that his parallel importation of video games is legal and that the defendants have no right to try and stop tion from the court that his parallel importation of video games is legal and that the defendants have no right to try and stop himfrom fromengaging engagingininparallel parallelimportation. importation.Hampton Hamptonclaims claimsthat thatAAMA AAMAemployees employeesororagents agentswent wenttotohishislocations locationsand andfalsely falsely him told the proprietors that he was a crook, a thief, and a smuggler and that they would get into trouble unless they stopped dealing told the proprietors that he was a crook, a thief, and a smuggler and that they would get into trouble unless they stopped dealing with Hampton. Hampton asserts he was threatened by AAMA's Bob Fay to be turned into the FBI unless he signed a letter with Hampton. Hampton asserts he was threatened by AAMA's Bob Fay to be turned into the FBI unless he signed a letter promising not to deal in parallel boards and agreed to tum in his parallel boards. Hampton refused the request because he feels promising not to deal in parallel boards and agreed to turn in his parallel boards. Hampton refused the request because he feels that parallels are legal. It appears that Hampton's complaint largely tracks Red Baron's complaint but emphasizes the particular that parallels are legal. It appears that Hampton's complaint largely tracks Red Baron's complaint but emphasizes the particular harassment of his locations. Red Baron complains it was injured because it was forced to yield to the tie-in and buy Double harassment of his locations. Red Baron complains it was injured because it was forced to yield to the tie-in and buy Double Dragon dedicated games, while Hampton complains that he was injured because he would NOT yield to the tie-in and bought Dragon dedicated games, while Hampton complains that he was injured because he would NOT yield to the tie-in and bought parallel games . parallel games. ... ... ...In . .Inaarelated relatedmatter, matter,the theFederal FederalCourt CourtofofAppeals AppealsininPhiladelphia Philadelphiareversed reverseda alower lowercourt courtdecision decisionininSebastian SebastianInterInternational versus Consumer Contacts Ltd. concerning parallel imports. Sebastian entered into a verbal contract allowing Connational versus Consumer Contacts Ltd. concerning parallel imports. Sebastian entered into a verbal contract allowing Consumer Contacts to sell Sebastian shampoo in South Africa. However, after Sebastian sent the shampoo to South Africa, Consumer Contacts to sell Sebastian shampoo in South Africa. However, after Sebastian sent the shampoo to South Africa, Consumer Contacts then brought it back to the U.S. for re-sale. Sebastian sued claiming that Consumer Contacts could not legally sumer Contacts then brought it back to the U.S. for re-sale. Sebastian sued claiming that Consumer Contacts could not legally sell the shampoo in the U.S. because the label was copyrighted. A lower court agreed; but on May 25 the higher court reversed sell the shampoo in the U.S. because the label was copyrighted. A lower court agreed; but on May 25 the higher court reversed that decisionbased basedononthe thefirst firstsale saledoctrine. doctrine. The Thecourt courtdecided decidedthat thatSebastian Sebastianhad hadbeen beenaptly aptlycompensated compensatedfor foritsitsproduct productonce once that decision it was sold to Consumer Contacts and subsequently, Sebastian had no say as to what Consumer Contacts did with the product. it was sold to Consumer Contacts and subsequently, Sebastian had no say as to what Consumer Contacts did with the product. the first sale doctrine was applied in the same way to parallel imported video games, consumers could argue that the original IfIfthe first sale doctrine was applied in the same way to parallel imported video games, consumers could argue that the original manufacturer had been compensated for the product, in this case used boards, and had no right to dictate where these later were manufacturer had been compensated for the product, in this case used boards, and had no right to dictate where these later were sold. Parallel boards are genuine boards that have been sold in Japan by the copyright owner and operated on routes over there. sold. Parallel boards are genuine boards that have been sold in Japan by the copyright owner and operated on routes over there. Then they are sold to an independent dealer who, in tum, ships them into the U.S. for re-sale. The first sale doctrine argument Then they are sold to an independent dealer who, in turn, ships them into the U.S. for re-sale. The first sale doctrine argument may be tested in court in the Red Baron and Hampton cases. In most cases so far, counterfeit boards were seized along with may be tested in court in the Red Baron and Hampton cases. In most cases so far, counterfeit boards were seized along with parallels. Since counterfiets are unquestionably illegal that makes then an easier target in court . parallels. Since counterfiets are unquestionably illegal that makes then an easier target in court. .. AMOA .AMOAhas hasadvised adviseditsitsmembers membersthat thatmost mostcoin coinoperated operatedmachines machineshave havebeen beenreclassified reclassifiedfor forinsurance insurancepurposes purposes into class code #40040 " Amusement Devices. " This removes amusement machines from the vending machine categories and into class code #40040 "Amusement Devices." This removes amusement machines from the vending machine categories and should result in a lower insurance rate. Check with your insurance agent and make sure he is aware of this change . should result in a lower insurance rate. Check with your insurance agent and make sure he is aware of this change. .. . The copyright laws in Canada, enacted in 1924, are in for a major overhaul according to the Canadian Parliament. The copyright laws in Canada, enacted in 1924, are in for a major overhaul according to the Canadian Parliament. The passedthetheSenate Senateand andisisjust justone onestep stepaway awayfrom frombecoming becominglaw lawwhen whenthe thePrime PrimeMinister Ministersigns signsit.it.Fines Finesfor forcounterfeiting counterfeiting The billbillhashaspassed will escalate considerably from a mere $10 to up to $1 million and possible jail terms. AAMA's Bob Fay said thatwith withthe the will escalate considerably from a mere $10 to up to $1 million and possible jail terms. AAMA's Bob Fay said that new penalties, game copiers will think twice. ''With virtually no penalty to deter them, game copiers have run rampant in Canada. new penalties, game copiers will think twice. "With virtually no penalty to deter them, game copiers have run rampant in Canada. The new copyright bill is good news for our industry," he said . The new copyright bill is good news for our industry," he said. .. .Todd Erickson, a rather outspoken operator from Summit Amusements in Minnesota, will be working with Frank .Todd Erickson, a rather outspoken operator from Summit Amusements in Minnesota, will be working with Frank Ballouz's new company, Fabtek. Todd will be writing the manuals and supplying service support. Todd said he will be recomBallouz's new company, Fabtek. Todd will be writing the manuals and supplying service support. Todd said he will be recommendingtotooperators operatorsboth botharcade arcadeand andstreet streetsettings settingsforforFabtek's Fabtek'sfirst firstkit, kit,Dead DeadAngle, Angle,and andfuture futuregames. games.Todd Toddwas wasvery verysecretive secretive mending about two new games in the works but did say that Frank is being very selective because he cannot afford a blunder. That's about two new games in the works but did say that Frank is being very selective because he cannot afford a blunder. That's good news for operators! Todd explained that no one prior to this had come up with different settings for different locations. good news for operators! Todd explained that no one prior to this had come up with different settings for different locations. He feels that arcade players are much better players with quicker reactions. ''There has been a need for this for a long time,'' He feels that arcade players are much better players with quicker reactions. "There has been a need for this for a long time," said. "Although manufacturers should support operators with settings, once they sell a game they don't want to go back hehesaid. "Although manufacturers should support operators with settings, once they sell a game they don't want to go back to it." Todd's first recommendation is putting the kit in Dynamo's 25-inch cabinet saying it will earn 20 percent more. "The to it." Todd's first recommendation is putting the kit in Dynamo's 25-inch cabinet saying it will earn 20 percent more. "The morewewecan cantell telloperators operatorstotohelp helpthem themearn earnmore moremoney moneythe thebetter betterititlooks looksfor foreveryone, everyone,not notjust justFrank," Frank,''Todd Toddadded. added.Todd Todd more will be taking calls at (612) 645-9077. will be taking calls at (612) 645-9077. July 1988/PLAY METER 3 July 1988/PLAY METER 3