In 1982 Nintendo was not quite the powerhouse they are today. As a company, it had existed for nearly a hundred years, after being founded in 1889 as Nintendo Karuta by craftsman Fusajiro Yamauchi. For most of the following century Nintendo produced handmade hanafuda playing cards, before expanding into various alternative lines of business during the 1960s and acquiring a legal status as a public company under the current company name, Nintendo Co., Ltd.
In 1977 Nintendo distributed its first video game console, the Color TV-Game, and an arcade game inspired by Othello. Then, in 1979, two key events in Nintendo's history occurred leading it to become the company we associate the name with today: its American subsidiary was opened in New York City, and a new department focused on arcade game development was created.
In 1980, Nintendo released the first handheld video game system produced using the technology used in portable calculators. The Game & Watch became one of Nintendo's most successful products, with over 43.4 million units sold worldwide during its production period, and for which 59 games were made in total. Nintendo's success in arcade games grew in 1981 with the release of Donkey Kong, which was developed by Shigeru Miyamoto and one of the first video games that allowed the player character to jump. That jumping character affectionately known as Jumpman, would later be given the name Mario and become Nintendo's official mascot.
Donkey Kong proved to be a massive success, and the initial run of 2,000 arcade units which Nintendo produced sold out almost instantly. By the end of 1981, Donkey Kong was selling 4,000 units a month. Nintendo found themselves struggling to keep up with the demand and it wasn't long before similar games, Donkey Kong clones, began appearing within arcades.
However, the game’s success did not go unnoticed by Sid Sheinberg, a seasoned lawyer and president of MCA and Universal City Studios. In April 1982, Sheinberg argued that Donkey Kong infringed on Universal’s rights to King Kong, the titular character of the classic 1933 film. Universal threatened legal action, starting with Coleco, a company that had licensed the home console version of Donkey Kong. Coleco quickly capitulated, agreeing to pay royalties of 3% of net sales, amounting to $4.6 million. Universal also revoked Tiger’s license to produce a King Kong game but later allowed it to proceed under certain conditions to distinguish it from Donkey Kong.
When Universal approached Nintendo with similar demands, Nintendo’s attorney, Howard Lincoln, refused to back down. Lincoln, who would later become a board member, thoroughly researched Universal’s claims and found them baseless. In fact, Universal had previously argued in a 1975 case that King Kong’s characters and plot were in the public domain. This would prove to be a pivotal point in the upcoming court battle.
Universal officially sued Nintendo on June 29, 1982, with the case being heard by Judge Robert W. Sweet in the United States District Court for the Southern District of New York. Over seven days, Universal’s attorneys argued that the similarities between King Kong and Donkey Kong—from their names to their plots—constituted trademark infringement. Nintendo’s legal team, led by John Kirby, countered by highlighting Universal’s own admission that King Kong was public domain material. Kirby also pointed out the significant differences between the two characters: Donkey Kong’s comical and childlike persona contrasted sharply with King Kong’s ferocious and primal nature.
Judge Sweet ultimately ruled in Nintendo’s favor. He chastised Universal for their aggressive tactics, noting that Universal had knowingly overstepped its legal boundaries. Sweet’s decision emphasized that any confusion between King Kong and Donkey Kong was unlikely, and he deemed the latter to be more of a parody than a copy. Additionally, he found Tiger’s King Kong game to be an infringement on Donkey Kong’s distinct elements.
Nintendo was awarded Universal’s profits from Tiger’s game, totaling $56,689.41, along with damages and attorney’s fees. Universal’s appeal, which included attempts to prove consumer confusion through a telephone survey and media references, was also dismissed. In 1985, Judge Sweet awarded Nintendo $1.8 million in additional legal fees and expenses. Although both parties appealed this judgment, it was upheld in 1986.
The outcome was a landmark victory for Nintendo. It not only cemented their reputation as a serious player in the entertainment industry but also taught them they could compete with larger, more established companies. As a token of appreciation, Nintendo gifted John Kirby a $30,000 sailboat named Donkey Kong and granted him exclusive worldwide rights to the name for sailboats. Nintendo also honored Kirby by naming a future character after him: the pink, round, and lovable protagonist Kirby.
The legal battle between King Kong and Donkey Kong remains a fascinating chapter in gaming history, demonstrating the power of persistence and the importance of standing firm when facing baseless claims. It’s a story of a scrappy Japanese company proving that even the mightiest of entertainment titans can’t always have their way.
No comments:
Post a Comment