News

Nintendo Avoids Wii U Sales Injunction In Settlement With Philips

by Mike Futter on Dec 02, 2014 at 03:50 AM

In May 2014, electronics manufacturer Philips filed suit against Nintendo over alleged patent infringement. The complaint targeted motion-control peripherals, including the Wii U and accessories like the Wii Remote.

In June, Nintendo was dealt a blow in UK courts as a judge ruled that patents for recognition of hand gestures and motion input were infringed by the gaming company. Philips’ suit, which sought damages, enhancement valued at three times plus interest, and injunction against further Wii U sales has now been settled. 

A press release issued by Philips indicates that the parties have agreed to cross-license select patents. The case filed in Delaware has also been dismissed by request, with each party responsible for its own court fees.

“We are very pleased to have reached this agreement with Nintendo. It demonstrates that both companies recognize the importance of intellectual property rights,” said Brian Hinman, Chief Intellectual Property Officer of Philips in a statement. “It also shows the value of our extensive IP portfolio and our commitment to protect our significant investments in research & development.” 

Philips says that terms of the agreement, including financial details, will not be disclosed. We’ve reached out to Nintendo for comment and will update should we receive a response.

[Source: Philips]

 

Our Take
This was the right move for Nintendo after losing footing in the UK. The Wii U is starting to improve, making this the absolute worst time to risk any legal action that could undermine the progress made by a strong first-party lineup this fall.