Bloomberg.com

Nintendo Co., the maker of the top-selling video-game console, was sued by a Maryland electronicslaboratory that claims its motion-control inventions are beingused in the Wii system. Hillcrest Laboratories Inc. seeks to block imports of theWii and Wii remotes, according to a complaint filed today withthe U.S. International Trade Commission in Washington. Hillcrestalso filed a civil suit in federal court in Greenbelt, Maryland.
``We haven't received any notice of the lawsuit andtherefore are not in a position to comment at this time,''Nintendo's spokesman Yasuhiro Minagawa said by telephone fromKyoto. The company's shares fell 1.9 percent to 49,450 yen inOsaka trading.
Three of the Hillcrest patents are for motion-controltechnology and a fourth is for graphical interface software usedon the television. Kyoto, Japan-based Nintendo makes the Wii, amachine that plays games by swinging a motion-sensing controllerlike a bat, tennis racket or other item.
Rockville-based Hillcrest said it licenses its motion-control technology, called Freespace, to Logitech InternationalSA, Universal Electronics Inc. and other companies. The graphicinterface technology, called Home, is licensed to companies thatHillcrest declined to name.
``While Hillcrest Labs has a great deal of respect forNintendo and the Wii, Hillcrest Labs believes that Nintendo is inclear violation of its patents and has taken this action toprotect its intellectual property rights,'' the company said in astatement.
ITC Can Block Imports
The lawsuit, which seeks cash, is likely to be put on holdwhile the ITC case proceeds. The ITC has the power to blockimports of products found to infringe U.S. patents. It typicallyagrees to investigate complaints and issues a decision in about15 months.
The Wii is the best-selling game console in the U.S., with555,000 units sold during the month of July alone. Nintendo saidthe Wii accounts for 49 percent of the console market, citingresearcher NPD Group Inc.
Nintendo has had other patent-infringement complaints filedagainst it as the Wii gained popularity. The company is facing aban on the Wii Classic controller, which is sold separately fromthe Wii system, unless it can convince an appeals court tooverturn a $21 million verdict won by Anascape Ltd. of Tyler,Texas.

So now they have to print some more money and give it to this company? Big deal.

Nintendo and the small firms in question both know that settling out of court is the only amicable option in this situation.  Nintendo, in the same way they and every other major console hardware manufacturer will sweep this under the carpet as quickly as possible by settling, or reaching another out-of-court agreement.

I mean... really... Tiny little R&D companies versus Nintendo corporate litigators?

Huh-huh-huh.

Funny.