Nintendo Must Forfeit Percentage Of 3DS Sales Because Of Lawsuit

Posted: January 7, 2014 in News

 

Back in March 2013, Nintendo was found guilty of patent infringement and was ordered to pay millions of dollars in damages. Now, in addition to this, they must also pay royalties to the owner of the patent, Tomita Technologies.

According to a report on Law360, Nintendo must pay 1.82 percent of the price of each 3DS sold to Tomita. Originally, it was intended that they would pay a flat rate of $4.45 for each unit sold, but this would have resulted in larger profits for Tomita should the price of 3DS drop over time: “If, as Tomita suggests, the ongoing royalty rate were expressed as a flat dollar amount per unit sold, Tomita would capture an increasingly large proportion of each sale as the price falls, even as the technology’s reliance on the infringed patent remains constant,” Judge Rakoff wrote in his decision. “This would result in an unearned windfall for Tomita, and, accordingly, the court prefers an ongoing royalty rate expressed as a percentage of wholesale price.

Hat tip to NeoGAF for the report.

 

 

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