Nintendo Gets Huge Settlement Against ROM Site Probably Just To Scare Other ROM Sites
from the make-believe dept
A couple of years ago, we first discussed how Nintendo, long-time maximalists on intellectual property concerns, decided to open up a new front against ROM sites. What at first looked like it might be something of a surgical strike mission-creeped this past summer into a full war on ROM sites generally, with Nintendo using a buckshot lawsuit approach. Many sites simply voluntarily shut down, sweeping away decades of video game history to be once again locked up by Nintendo, while others stared down the company's legal guns. All this, of course, as Nintendo was showing how silly this all is given the insane performance of its Nintendo retro consoles.
Well, it looks like the output of this effort is going to be Nintendo playing games with at least one of these suits, getting a settlement that nobody thinks it's actually going to pursue in full just to have a multi-million dollar number to threaten other sites with. The husband and wife operators of LoveROMS.com have agreed to a $12 million settlement they can't pay, and likely won't have to, to have Nintendo call off its dogs.
Today we can report that both sides have indeed reached a deal. They agreed to a consent judgment and a permanent injunction that will resolve all outstanding disputes. Paperwork obtained by TorrentFreak shows that Mathias and his wife admit that their involvement with the websites constituted direct and indirect copyright and trademark infringement, which caused Nintendo irreparable injury.
However, on paper, the married couple won’t be getting off cheaply. On the contrary, they actually agreed to a judgment that exceeds $12 million.
“Plaintiff is hereby awarded judgment against all Defendants, jointly and severally, in the amount of $12,230,000,” the proposed language reads.
To be clear, nobody is saying the settlement is invalid or anything like that. In this case, the couple has admitted to infringing Nintendo's copyright rights, has agreed to hand over any emulators and ROMs it has, and has agreed to the amount in question. On paper at least. But that agreement likely comes with the understanding that after this is all inked with signatures and the blessing of the court, a separate deal will be worked out for the payment of an entirely different amount.
We can only speculate but it’s possible that Nintendo negotiated such a high number, on paper, to act as a deterrent for other site operators. In practice, the defendants could end up paying much less.
It wouldn’t be the first time that a judgment in court is more than what the parties agreed to privately. This happened before in the MPAA’s lawsuit against Hotfile, where a $80 million judgment in court translated to $4 million behind the scenes settlement.
In other words, Nintendo pushed for a settlement amount it wouldn't have gotten at trial not as an act of justice, but to use as a bludgeon against other ROM sites. It will be used either as a way to force voluntary shutdown of those sites, or as a template for settlement demands in the future. Either way, it makes a game out of the legal system, rather than trying to get to a just result.
And it has to be pointed out again that this is all happening as Nintendo competes with these sites perfectly well with its very cool retro consoles. Because control is what matters.
Filed Under: copyright, emulators, roms, video games
Companies: nintendo