-NEWS- Nintendo faces yet another patent lawsuit

[Meltd0wn]

Hillcrest Laboratories files patent infringement suit against Nintendo.

Yes another company has appeared out of virtually nowhere claiming that the Wii infringes on their patents. I'm sure we all still remember the last case Nintendo lost (but is currently trying to appeal) to Anascape Ltd. over the Gamecube, Wavebird, and the classic controllers.

Well now this late in the game, Hillcrest Laboratories have decided to spring up with a lawsuit of their own challenging the Wii Remote's technology.




Dated-Aug. 20 (Bloomberg) -- Nintendo Co., the maker of the top- selling video-game console, was sued by a Maryland electronics laboratory that claims its motion-control inventions are being used in the Wii system.

Hillcrest Laboratories Inc. seeks to block imports of the Wii and Wii remotes, according to a complaint filed today with the U.S. International Trade Commission in Washington. Hillcrest also filed a civil suit in federal court in Greenbelt, Maryland.

``We haven't received any notice of the lawsuit and therefore are not in a position to comment at this time,'' Nintendo's spokesman Yasuhiro Minagawa said by telephone from Kyoto. The company's shares fell 1.9 percent to 49,450 yen in Osaka trading.

Three of the Hillcrest patents are for motion-control technology and a fourth is for graphical interface software used on the television. Kyoto, Japan-based Nintendo makes the Wii, a machine that plays games by swinging a motion-sensing controller like a bat, tennis racket or other item.

Rockville-based Hillcrest said it licenses its motion- control technology, called Freespace, to Logitech International SA, Universal Electronics Inc. and other companies. The graphic interface technology, called Home, is licensed to companies that Hillcrest declined to name.

``While Hillcrest Labs has a great deal of respect for Nintendo and the Wii, Hillcrest Labs believes that Nintendo is in clear violation of its patents and has taken this action to protect its intellectual property rights,'' the company said in a statement.

ITC Can Block Imports

The lawsuit, which seeks cash, is likely to be put on hold while the ITC case proceeds. The ITC has the power to block imports of products found to infringe U.S. patents. It typically agrees to investigate complaints and issues a decision in about 15 months.

The Wii is the best-selling game console in the U.S., with 555,000 units sold during the month of July alone. Nintendo said the Wii accounts for 49 percent of the console market, citing researcher NPD Group Inc.

Nintendo has had other patent-infringement complaints filed against it as the Wii gained popularity. The company is facing a ban on the Wii Classic controller, which is sold separately from the Wii system, unless it can convince an appeals court to overturn a $21 million verdict won by Anascape Ltd. of Tyler, Texas.

Lawsuits over the Wii or Nintendo's other products are pending in federal courts in Texas, Pittsburgh, Chicago and Wilmington, Delaware.

The case is In the Matter of Video Game Machines, complaint 2631, U.S. International Trade Commission in Washington. The civil suit is Hillcrest Laboratories Inc. v. Nintendo Co., 08cv2199, U.S. District Court for the District of Maryland (Greenbelt).


(Source: Bloomberg.com)

[Smeagol]

Of course there are probably tons of companies issuing motion sensing technology, so obviously Nintendo can't be the first to infringe this patent.

However, Nintendo happens to be making the most money so everyone sues them rather than suing eachother.