Advertisement
Subscribe to Playthings

Winning Wii Strategies

By Marc S. Cooperman -- Playthings, 8/1/2008

Your kids and their friends aren't the only ones spending time with Nintendo's Wii. Recently, a federal jury in Texas had a chance to “play” with the Wii, too. In a patent infringement suit brought against Nintendo over several of the controllers used for the game, a jury issued a verdict of more than $20 million against the video game maker. Though it may appear that the company ran out of lives in this contest, in actuality, Mario and company may be off celebrating in some secret level.

How could a $20 million verdict be considered a victory? Consider what the plaintiff, Anascape Ltd., was seeking from Nintendo. By accusing Nintendo's GameCube controller, wireless Wavebird controller, Nunchuck controller, Wii Classic controller and Wii remote controller of infringement, Nintendo had over $1 billion in sales at stake. Anascape's damages expert told the jury that a royalty to compensate for the alleged infringement was at least 5 percent of sales, or more than $50 million in damages.

Nintendo used an interesting strategy in responding to this damages theory—it essentially ignored it. Rather than putting on its own expert to give a much lower damages number, Nintendo chose not to present any damages theory at all. Instead, Nintendo focused on convincing the jury that its accused game controllers did not infringe in the first place. Of course, this strategy, if fully successful, would have resulted in Nintendo paying nothing. The calculated risk Nintendo took was that the jury would not hear from an expert with a different damages number—in essence, presenting the jury with a potential all-or-nothing scenario.

In reality, Nintendo worked hard at trial to prove that its big selling Nunchuck controller did not infringe. Nintendo also pressed hard on a trial theme that Anascape had, in fact, copied Nintendo, rather than the other way around. These efforts were, at least, partly successful. The jury concluded that the Nunchuck did not infringe. And the end result was a verdict that was less than half of what Anascape was seeking from Nintendo.

In litigation, as in video games, it's important to develop and implement the right strategies in light of the strengths and weaknesses of your particular situation. Some lawyers advise “scorched earth” tactics that leave no stone unturned, and no argument un-rebutted. Don't accept that approach without careful consideration. Often—in fact, usually—that is not the best approach. Here, Nintendo's strategy, which largely ignored the damages portion of the case, paid off.

Marc S. Cooperman is a partner with Chicago's Banner & Witcoff Ltd. He specializes in IP litigation. He can be reached at mcooperman@bannerwitcoff.com.

Talkback

We would love your feedback!

Post a comment

» VIEW ALL TALKBACK THREADS

Related Content

Related Content

 

By This Author

Reed Business Information Resource Center

Featured Company


Related Resources


Sponsored Links



 
Advertisement

More Content

  • Blogs
  • Photos

Blogs


Sorry, no blogs are active for this topic.

» VIEW ALL BLOGS RSS

Photos


Sorry, no photos are active for this topic.

Advertisements





MOST POPULAR PAGES


NEWSLETTERS

Playthings Extra
Furniture Today eDaily
Furniture Today eClassifieds
Bedding Today
Furniture Today Green
Home Accents Today eWeekly
Home Accents Today Product Line
Casual Living eWeekly
Kids Today eWeekly
Gifts & Dec Direct
Gifts & Dec Product Wire
Home Textiles Today Extra
Please read our Privacy Policy

About Us   |   Advertise   |   Site Map   |   Contact Us   |   Subscription   |   Affiliate Links   |   RSS
© 2010 Reed Business Information, a division of Reed Elsevier Inc. All rights reserved.
Use of this Web site is subject to its Terms of Use | Privacy Policy