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Gibson Sues U.S. Retailers Over Guitar Hero Patent Dispute

Text of Patent No. 5,990,405 (November 23, 1999)

As previously reported: (i) in January, Gibson pressed Activision to pay it royalty fees alleging the video game Guitar Hero infringes its patent; and (ii) on March 12, 2008 Activision filed a preemptive lawsuit in the District Court for Central California seeking, among other things, to invalidate Gibson’s patent claims.

In response to Activision’s lawsuit, Gibson has now filed suit against major U.S. retailers of Activision’s game, including GameStop, Wal-Mart, Target, Kmart, Amazon and Toys “R” US, seeking to enjoin further sails of “Guitar Hero”.

March 21, 2oo8 Upate: While Gibson has since separately sued Harmonix, MTV and EA over alleged infringements in both Guitar Hero and Guitar Hero, as far as I’m aware Gibson has not yet filed suit directly against Activision.

Dale’s Comment: I have not found the text of the claim online. If/when I do, I will attach it to this post.

Sources: GameSpot | Dallas Business Journal | New York Times | Joystiq | msnbc (AP) | Yahoo! Tech | Gamasutra | CrunchGear | Silicon Alley Insider | Kotaku

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Activision Asks Court to Invalidate Gibson’s Guitar Hero Patent Claims

Text of Activision Complaint Seeking Declaratory Relief (March 11, 2008)
Text of Patent No. 5,990,405 (November 23, 1999)

Activision has a long-standing license to use guitar-maker Gibson’s trademarks in its Guitar Hero video game franchise.

Gibson owns a hitherto unknown and unenforced patent ‘405 (A System and method for generating and controlling a simulated musical concert experience) and claimed in a letter sent to Activision in January, that the Guitar Hero franchise, expansion packs and controllers infringe this patent. In the letter Gibson sought royalty payments from Activision:

Gibson requests that Activision obtain a license under Gibson’s … patent or halt sales of any version of the Guitar Hero game software.

In response, Activision has filed a preemptive lawsuit in the District Court for Central California asking the court, among other things, to invalidate Gibson’s patent claims and to bar it from seeking damages.

The abstract of Gibson’s patent no. 5,990,405 reads as follows:

A musician can simulate participation in a concert by playing a musical instrument and wearing a head-mounted 3D display that includes stereo speakers. Audio and video portions of a musical concert are pre-recorded, along with a separate sound track corresponding to the musical instrument played by the musician. Playback of the instrument sound track is controlled by signals generated in the musical instrument and transmitted to a system interface box connected to the audio-video play back device, an audio mixer, and the head-mounted display. An external bypass switch allows the musician to suppress the instrument sound track so that the sounds created by actual playing of the musical instrument are heard along with the pre-recorded audio and video portions.

Sources: Gamasutra | Next Generation 1 | Next Generation 2 | GameSpot | InformationWeek | engadget | Joystiq | MacWorld | Wall Street Journal | CNet | Yahoo! News (Reuters)

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Harmonix Brings $14.5M Royalty Suit Against Activision – Sort-of

Harmonix is the developer of the first two wildly successful Guitar Hero video games – originally published by RedOctane. In June 2006 Activision purchased the publishing rights to the franchise from RedOctane and Harmonix, which was subsequently purchased by MTV, went its own way and developed Guitar Hero. Activision-owned Neversoft has since taken-up the development of Guitar Hero sequels.

Harmonix claims that under its original agreement with RedOctane (subsequently assigned to Activision), it is entitled to a higher rate of royalties, amounting to $14.5 million, for the use of its intellectual property in Guitar Hero sequels. Harmonix claims that Activision has paid royalties based only on a prior lower rate.

Viacom (the parent of MTV and Harmonix) has reportedly withdrawn the suit for now. The companies have agreed to continue discussions outside of court.

Dale’s Comment: I could not find the text of the claim online. If I do, I will attach it to this post.

Sources: Variety | Gamasutra | GameSpot | Wired Blogs | CutScene | ars technica | GameSpot | Spong | Kotaku | Game Informer | gameindustry.biz

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Activision Settles with Two Former Guitar Hero Executives

In February, Activision launched a new lawsuit against The Ant Commandos (TAC), Reverb Communications and three former Red Octane executives/employees: former executive producer John Tam, brand manager [name removed on request] and hardware group member Jamie Yang. These former executives founded a new company with TAC – Loadstone Entertainment.

Activision has settled with John Tam and [name removed on request]. The two have consented to a permanent injunction restraining the two from:

  • distributing a demo created by TAM incorporating elements of Guitar Hero II;
  • using or disclosing any Activision trade secrets;
  • taking steps to develop drum, guitar or synthesizer-based games for the next year;
  • “working on” a guitar controller for the XBox 360 version of Guitar Hero II for six months after release; and
  • competing against an undisclosed list of peripheral devices for six months after Activision commercially releases them.

The two were also ordered to return all materials relating to Activision’s proprietary information.

As far as I’m aware, no settlement has thus far been reached with Jamie Yang, Reverb or TAC.

Dale’s Comment [written April 26, 2007]: On a personal note, I was one of the lucky one’s to pick up Guitar Hero II for the Xbox 360 on launch day. The local Best Buy had about 100 of them on the morning of the launch. As I understand it, they sold out within hours and, to the date of this writing (owing partially to extreme demand and problems with some versions of the initially released guitar peripheral), I still can’t find them for sale anywhere in Toronto. I would like to purchase a second guitar peripheral. I’m having a blast with this game. As one of the commentators in a recent Joystiq Podcast pointed out, my fingers ache and want to stop playing long before the rest of me does! 🙂

Sources: GameSpot | Gamasutra | GameIndustry.biz | 1Up.com | CVG | Kotaku

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Activision Sues Ant Commandos and Former Guitar Hero Executives

In a new Guitar Hero related dispute, Activision (Guitar Hero publisher RedOctane’s parent company), has filed a fresh lawsuit against guitar peripheral maker The Ant Commando (TAC), Red Octane’s PR firm Reverb Communications and three former Red Octane executives/employees: former executive producer John Tam, brand manager [name removed on request] and hardware group member Jamie Yang. The former executives founded a new company with TAC – Loadstone Entertainment.

The complaint alleges:

“copyright infringement, trademark infringement, misappropriating trade secrets and confidential information, breach of contract, interference with contractual relations, and more. “

GameSpot is reporting that Activision has already obtained a temporary restraining order against the defendants restraining them from:

  • distributing a demo created by TAM incorporating elements of Guitar Hero II;
  • using or disclosing any Activision trade secrets, including: music licensing contract terms, in-game advertising, sales figures, marketing plans, product designs, and possible future songs and artists to be featured;
  • developing a guitar controller for the XBox 360 version of Guitar Hero II for three months after release;
  • soliciting Activision employees, partners or Asia-based manufacturing partners; and
  • taking any steps to develop, market, manufacture, sell, or distribute any guitar or drum based video games.

As recently as December 27, 2006, Activision and Red Octane had settled a different dispute with TAC concerning the sale of unlicensed guitar peripherals. See here for details.

Sources: Gamasutra | GameSpot | Kotaku

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RedOctane & The Ant Commandos Settle Guitar Hero Controller Dispute

As expected, on December 22 The Ant Commandos and RedOctane settled their Guitar Hero controller/peripheral suit and countersuit. 1Up.com summarizes the dispute in this amusing way:

Anyway, so RedOctane sued the Ant Commandos, claiming rights infringement on their popular Gibson SG brand of guitar controllers. The Commandos fired back claiming that the SG stepped all over their existing patents on technology for 3-button Guitar Freaks! guitars. Everybody was fingerpointing, it sucked.

While details of the settlement have not been disclosed a representative of Ant Commandos confirmed to GameSpot that its products would continue to be distributed. Jack Black and the Rightous Gods of Rock will be happy with this outcome!

Dale’s Comment: Until I discovered that neither the Ant Commando nor the RedOctane controllers will work with the PS3, one of the primary reasons I wanted to purchase a PS3 was to play Guitar Hero. I had hoped that like most PS2 games, it would be playable on the PS3. Happily, Guitar Hero 2 is coming to the XBox 360 so I won’t need to purchase a PS2 in order to finally play this game.

Sources: Gamasutra | GameSpot | 1UP.com | GameIndustry.biz

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The Ant Commandos Coutersues RedOctane for Trade Dress Infringement

The Ant Commandos (TAC) is countersuing RedOctane, alleging the guitar controller was first designed by TAC’s part owner Topaway and its trade dress later copied by RedOctane after RedOctane’s CEO visited its Chinese factory and subsequently purchased several hundred of its controllers. In addition TAC has filed for an injunction asking that Activision and RedOctane be prevented from infringing on the “trade dress” and that Guitar Hero software be unbundle from SG controller to allow for fair competition.

Sources: GameSpot | Gamasutra | Next Generation | Kotaku | Joystiq | IGN | Silicon Era | GameDaily.biz