Activision is being sued by the Patent Compliance Group for "false patent marking." Don't walk away! It's not that complex, we promise. What it basically means is that this private group of patent police is trying to ding Activision on patents it has on products that are beyond the scope of what it's producing. The reason for the lawsuit, according to the PCG, is that "false patent marking is a serious problem. Acts of false marking deter innovation and stifle competition in the marketplace. If an article that is within the public domain is falsely marked, potential competitors may be dissuaded from entering the same market."
LGJ columnist (and lawyer) Mark Methenitis explains, "Some claims may have some merit like the '753 patent, which is basically for a DDR pad, which wouldn't necessarily apply to Guitar Hero; or the '689 patent, which is for the DJ Hero turn table which does not work with Guitar Hero 5 or Band Hero. To me, it looks like the shotgun approach: hit everything and hope something sticks." Check out Methenitis' full response to us after the break.
PCG is seeking $500 for each of Activision's violations, which is set by statute. As Gray on Claims notes, Activision isn't the only company caught in the crosshairs of the "patent police." What these groups are attempting to do is keep companies (like Activision!) from putting a patent on ideas or concepts that aren't in development.
PDF -- Patent Compliance Group v. Activsion
Source -- Patent Marking Police out in full force
[Via Edge, THR]
Mark Methenitis' full response:
"The statute in question is one that actually penalizes false marking that a product is patented or patent pending. The idea is that those false markings might deter someone from trying to create something new in that area. Here's where this gets a little unusual. Many of the patents (in reading through the claim as alleged in the lawsuits) seem to be for arcade versions of these games, whereas the markings appear on the home version. I think there would be a substantive questions as to whether that distinction is valid as raised in these suits. Some of the later patents are much harder to follow (the '153, '244, '863, patents), but it seems to me that they apply to the games in question. Some claims may have some merit like the '753 patent, which is basically for a DDR pad, which wouldn't necessarily apply to Guitar Hero; or the '689 patent, which is for the DJ Hero turn table which does not work with Guitar Hero 5 or Band Hero. To me, it looks like the shotgun approach: hit everything and hope something sticks.
Equally interesting is the 'Patent Compliance Group' seems to be a private group that has appointed themselves the 'patent marking police' and (along with others like them) have seen a huge uptick in marking suits since the start of 2010. And PCG isn't just suing the video game industry."
Reader Comments (48)
Posted: Feb 24th 2010 8:20AM That Burning Sensation said
More proof Activision and Kotick are slimmy, dung eating, douchbags.
Posted: Feb 24th 2010 8:32AM Dr said
To be fair, at least Activision is a company that does something besides patent things and then sue people who try to make products... I've lost count of the number of stories here about random patent-trolls suing companies because they own the rights to "internet website where you type things" or something.
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Posted: Feb 24th 2010 8:34AM That Burning Sensation said
. . . some say cucumbers taste better pickle.
"What?"
Huh?
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"What?"
Huh?
Posted: Feb 24th 2010 8:21AM Ritchie Blackmore said
Activision wins again.
Posted: Feb 24th 2010 8:26AM That Burning Sensation said
Yeah, 500 dollar fine. Gezzz, a guy can get more punishment for stealing bread to feed his family. No wonder companies break the laws so often. WTF, whats the worst that could happen? They might get a fine a little worse than a speeding ticket.
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Posted: Feb 24th 2010 8:32AM Halgrimur said
The hypocrisy of the Capitalist system- $ 500 even on, say 10000 patents is still less what they make within a week, probably (Bah, maths).
Boo capitalism!
Sadly, it's this capitalist system that lets us enjoy the amazing games that come out every year...
Soooo.....down with games? Anyone?
Boo capitalism!
Sadly, it's this capitalist system that lets us enjoy the amazing games that come out every year...
Soooo.....down with games? Anyone?
Posted: Feb 24th 2010 9:31AM That Burning Sensation said
There is nothing wrong with capitalism, but there must be a balace struck with the 'greater good'. Just like anything in life, sucess is about balance. Besides, the greatest empire known to man stressed the importance of the greater good: Rome. Its citizens paid heafty taxes, but enjoyed modern technologies at the time. The people they conquered were rolling in their own crap before the Romans. Sewers, aqueducts, medicine, bathhouses, protection from tribes who raped and pillaged (like the Gaelic/Celts) and all was given to who ever they conquered. Also, their artists still made the best works of art known to man at a frenzied pace and they were hardly paid. Money is not the only incentive.
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Posted: Feb 24th 2010 10:27AM Sechul said
$500 per violation is not per patent, its per sale. A maxed damages award would be the end of the company.
These are the next generation of patent trolls, looking to make a quick buck based on a recent decision relating to patent marking. Because its a very new area, the success rate and degree of profitability is still untested, but if a couple of these cases turn into windfalls the vultures will come out in full force. Patent marking violations are ripe for exploitation because enforcement has been minimal up until now and marking in general isn't rigorous in most businesses due to the level of coordination needed to make it work properly.
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These are the next generation of patent trolls, looking to make a quick buck based on a recent decision relating to patent marking. Because its a very new area, the success rate and degree of profitability is still untested, but if a couple of these cases turn into windfalls the vultures will come out in full force. Patent marking violations are ripe for exploitation because enforcement has been minimal up until now and marking in general isn't rigorous in most businesses due to the level of coordination needed to make it work properly.
Posted: Feb 24th 2010 1:32PM aristokrat said
Also, explain to me how this is capitalism at work? Pure capitalism has no government interference with regards to market regulation, thus no such laws and even no patent system; instead, the market is supposed to self-regulate through pricing. Nice try though.
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Posted: Feb 24th 2010 8:35AM Chris DPSN AggieCEO XBLThe Aggi said
wait....so other companies dont look into those patent numbers? I would think so....I mean if I am thinking on getting into a certain business I would want to know my competition and which patents they owned.....I mean those fake ass patent numbers are all over the place....its like taking the word of N4G as factual....best look into it for yourself
Posted: Feb 24th 2010 8:38AM That Burning Sensation said
I apologize for being off topic, but how the hell did you upload your photo. Seriously, I've been trying for a while now.
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Posted: Feb 24th 2010 8:39AM Chris DPSN AggieCEO XBLThe Aggi said
just clicked on my name....put in the password....clicked on edit picture...
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Posted: Feb 24th 2010 8:44AM That Burning Sensation said
Yup tried that. On several computers. Oh well.
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Posted: Feb 24th 2010 9:07AM Chris DPSN AggieCEO XBLThe Aggi said
I think my pic was 100x100.....cant remember....but I did use firefox....
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Posted: Feb 24th 2010 8:43AM Rocketboy said
"the 'Patent Compliance Group' seems to be a private group that has appointed themselves the 'patent marking police'"
But the people above are calling Activision the problem?
Don't these lawyers have anything better to do with their time and my money?
But the people above are calling Activision the problem?
Don't these lawyers have anything better to do with their time and my money?
Posted: Feb 24th 2010 8:51AM xGeneral DEATHxDEETH82 said
You pissed on the wrong patent, buddy!
Posted: Feb 24th 2010 8:53AM peterntrinh said
Does Harmonix fit anywhere in this situation?
Posted: Feb 24th 2010 9:25AM oldschoolgamer said
Apple does the same thing. If this lawsuit is successful look for them to be next to get hit with a lawsuit.
Posted: Feb 24th 2010 9:53AM den69 said
Oh wow $500, that's really gonna break Activision's bank.
Posted: Feb 24th 2010 9:59AM wormania said
You guys realise this could mean $500 for every copy of any Guitar Hero/DJ Hero game sold?
It's not a flat $500 fine.
It's not a flat $500 fine.
Posted: Feb 24th 2010 10:04AM wormania said
"Section 292 of the Patent Act provides that a person who falsely marks an unpatented article as being patented, where the false patent marking was done with an intent to deceive the public, [s]hall be fined not more than $500 for every such offense."
The MARKING of an unpatented object as being patented is the offsense. Which means every single peripheral and game which says it is patented is an offense.
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The MARKING of an unpatented object as being patented is the offsense. Which means every single peripheral and game which says it is patented is an offense.
Posted: Feb 24th 2010 10:07AM wormania said
Whoops, also missed:
"...overrules these district court cases and holds that the penalty of ยง 292 must be assessed on a per article/product basis with the district court setting the amount of the penalty anywhere from a fraction of a penny to $500 per falsely marked article."
It says it used to be $500 for the entire production run, now it's up to $500 per item.
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"...overrules these district court cases and holds that the penalty of ยง 292 must be assessed on a per article/product basis with the district court setting the amount of the penalty anywhere from a fraction of a penny to $500 per falsely marked article."
It says it used to be $500 for the entire production run, now it's up to $500 per item.
Posted: Feb 24th 2010 10:12AM den69 said
Yeah well the game is the offense not the amount of them.
Posted: Feb 24th 2010 10:26AM Evadrion said
I'll sue you!
Posted: Feb 24th 2010 10:33AM moominsean said
the fact that the money seems to go to this group just shows that they are another group of assholes trying to make money without actually doing anything. just read through patents and look for people to sue.
Posted: Feb 24th 2010 11:23AM Warlock said
I still don't really understand this.... so because Activision hasn't made a Guitar Hero game using the DJ Hero turntable, they are getting sued? Does this make sense to anyone else?
Also, how the heck do these guys know that Activision isn't using their patents? Maybe they *are* developing said Guitar/DJ Hero hybrid and haven't announced it to the public?
I don't know, with all the patent trolls out there, seems like there are bigger problems than Activision coming up with fifty thousand different ideas for Guitar Hero games............ then again.....
Also, how the heck do these guys know that Activision isn't using their patents? Maybe they *are* developing said Guitar/DJ Hero hybrid and haven't announced it to the public?
I don't know, with all the patent trolls out there, seems like there are bigger problems than Activision coming up with fifty thousand different ideas for Guitar Hero games............ then again.....
Posted: Feb 24th 2010 11:37AM BigE4284 said
Activision has a patent on the DJ Hero turntable, they are marking their Guitar Hero patent to say "this product protected by US Patent No. XXXXXXX" (the DJ Hero patent) when it clearly is not, since there is no DJ Hero turntable used in Guitar Hero.
False marking cases also often arise when a company has continued to mark their products after a patent has expired.
This same group filed 7 total suits in February, including suits against Brunswick, Timex, and the folks who make Tweezers.
They don't get to keep all of the damages from the suit, half goes to the US government.
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False marking cases also often arise when a company has continued to mark their products after a patent has expired.
This same group filed 7 total suits in February, including suits against Brunswick, Timex, and the folks who make Tweezers.
They don't get to keep all of the damages from the suit, half goes to the US government.
Posted: Feb 24th 2010 2:42PM BigE4284 said
Correct, in theory Activision should be marking their Guitar Hero packaging with the patents that cover Guitar Hero and the DJ Hero packaging with the patents that cover DJ Hero, etc.
By stamping all kinds of patents all over their packaging they're trying to discourage competitors from making similar products.
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By stamping all kinds of patents all over their packaging they're trying to discourage competitors from making similar products.
Posted: Feb 24th 2010 1:16PM The Aquacharger said
So, dancing in Guitar Hero confirmed?
Posted: Feb 24th 2010 1:41PM (Unverified) said
Patents are too strict anyways. Information should be free and useable by anyone.
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