August 5, 2008 by Robert Tharp at 4:19:52 pm
East Texas Patent News: Nintendo ponys up $38 million to keep selling Wii and Game Cube
Sales of the wildly popular Wii and Game Cube controllers threatened to come to a grinding halt in the ongoing patent battle between a tiny Tyler, Texas, technology
company and Nintendo. Tyler-based Anascape, which holds patents to technology used in the controllers, has prevailed in the latest rounds in the U.S. District Court for the Eastern District of Texas. Most recently, the court ordered Nintendo to either stop selling three types of video controls for the Wii and the Game Cube or put a portion of the sales in escrow. For an idea of the stakes infolved, Nintendo ponied up more than $38 million in escrow in order to keep peddling the gadgets. Attorney DOUG CAWLEYand others from Dallas-based McKool Smith represented Anascape in the patent litigation and helped win a $21 infringement verdict against Nintendo in May that recently was approved by the federal court.
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