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Nintendo Dodges $21M Patent Infringement Suit

- By - Source : Tom's Guide US

Microsoft is probably regretting that settlement right about now.

Back in 2008, Nintendo was ordered to pay $21 million to a Texas-based company called Anascape. The ruling was from a suit that was filed two years earlier, in 2006. Anascape filed suit against both Microsoft and Nintendo, alleging that both companies were infringing upon Ananscape-owned patents relating to analog sensors, tactile feedback, and vibration mechanisms in game controllers.

Microsoft settled out of court but Nintendo chose to fight on and was hit with a damages bill amounting to $21 million for infringing upon one of the company’s patents with its Wii Classic, Wavebird, and GameCube controllers. At the time, many believed Nintendo had made the wrong decision, as settling out of court would surely have been cheaper. However, two years on, Nintendo has had that ruling overturned in the Federal Circuit Court.

Yesterday afternoon a press release hit the wire stating that the Court of Appeals for the Federal Circuit ruled that none of Nintendo’s video game controllers infringe on a patent asserted by Anascape.

At the time of the 2008 ruling, Microsoft said the details of the settlement reached May 1 were not going to be disclosed so we have no way of knowing how much the company spent to avoid the possibility of hefty fines.

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digiex 04/14/2010 4:56 PM
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MS is guilty that's why it settled, Nintendo knows that it is not guilty, that is why it kept on fighting.

jasonr49 04/14/2010 5:16 PM
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I bet MS has infringed on more patents then Nintendo has... It'd be an interesting stat to look up. ;)

sliem 04/14/2010 5:33 PM
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"...how much the company spent to avoid the possibility of hefty fines."

Possibly in the millions, lol.

cscott_it 04/14/2010 5:40 PM
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I think this is just more patent whoring.
It's like if scissors were patented, and everything that had a similar design infringed on that patent (or functioned in a remotely similar way). Some of this stuff is just stupid.

Anonymous 04/14/2010 5:44 PM
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I always love hearing news about how some obscure patent troll got owned in court.

kelewan 04/14/2010 5:44 PM
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cscott_it :
I think this is just more patent whoring.It's like if scissors were patented, and everything that had a similar design infringed on that patent (or functioned in a remotely similar way). Some of this stuff is just stupid.



+10

WheelsOfConfusion 04/14/2010 6:00 PM
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Patent trolls tend to win in the Texas circuit, but it looks like Florida actually gives a damn about patent law.

ksampanna 04/14/2010 6:15 PM
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danish_2828 04/14/2010 7:14 PM
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Lucky for Nintendo Sony made the Dual Shock Six Axis Controller in 1998 which basically made the Anascape 2000 patent invalid due to obvious prior art in 1998. I think companies should be able to sue the patent office when they allow a patent for something that already has prior art.

Anonymous 04/14/2010 8:32 PM
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DIGIEX -

That's ridiculous. The patent was ruled INVALID. So NO ONE infringes it.

maestintaolius 04/14/2010 9:03 PM
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digiex :
MS is guilty that's why it settled, Nintendo knows that it is not guilty, that is why it kept on fighting.


It settled for the same reason large companies frequently settle against NPEs (patent trolls). It's usually far cheaper to settle than fight it, considering you're facing an uphill battle in the eastern judicial district of Texas and usually have to appeal after losing to get a more favorable location (generally California) to get the ruling overturned, like Nintendo had to.

invlem 04/14/2010 9:10 PM
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Granted they dodged it, but it doesn't disclose how much MS spent to settle out of court.

4 years of legal battles might have ended up costing Nintendo more than MS's out of court settlement.

hellwig 04/14/2010 9:48 PM
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dwt1776 :
DIGIEX -That's ridiculous. The patent was ruled INVALID. So NO ONE infringes it.


That's information after the fact. What DIGIEX was saying was that at the time, Microsoft considered the patent valid and knew they were infringing on it. Nintendo never considered the patent valid and fought it in court. Just because the patent was overturned doesn't mean Microsoft copied the technology, it just means the law absolved them of any legal responsibility after the fact.

shakari 04/14/2010 9:54 PM
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invlem :
Granted they dodged it, but it doesn't disclose how much MS spent to settle out of court.4 years of legal battles might have ended up costing Nintendo more than MS's out of court settlement.



Sure it might have cost them a bit more than MS, but they can safley say that they didnt infringe on the patent. I guess its more to do with the honor thing that the Japs like and respect alot more than most other places.

knowom 04/14/2010 10:38 PM
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Nintendo likely all ready own most patents related to game controllers given how long they've seen around it's fairly reasonable to assume at least.

nukemaster 04/15/2010 12:54 PM
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cscott_it :
I think this is just more patent whoring.It's like if scissors were patented, and everything that had a similar design infringed on that patent (or functioned in a remotely similar way). Some of this stuff is just stupid.


kelewan :
+10


+999999999