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Mar-13-2008Gibson picks fight over 'Guitar Hero'(topic overview)
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Gibson requests that Activision obtain a license under Gibson's. patent or halt sales of any version of the ' Guitar Hero ' game software." According to Reuters, Activision's general counsel George Rose responded to the allegations with a statement reading, "Gibson is a good partner, and we have a great deal of respect for them. We disagree with the applicability of their patent and would like a legal determination on this." Interestingly, this case may grow more complex when viewed in the context of patent agreements Activision is already engaged in. As exclusively reported by Gamasutra shortly before the game was released last year, Activision has both purchased patents from third parties and licensed patents from Guitar Freaks creator Konami which cover aspects of gameplay and interface in the Guitar Hero series. This is the second troublesome legal problem revolving around Guitar Hero to come to light today; earlier, reports surfaced that original franchise developer Harmonix filed and then withdrew a lawsuit against the company seeking more than $14.5 million in royalties for Activision's continuation of the series. [1] The controllers themselves resemble Gibson designs, and the characters in the games can play different Gibson guitar models. That's not the crux of the dispute. According to Activision's complaint, Gibson claims in a letter sent to them in January that they have a 1999 patent for technology that simulates a musical performance. Guitar Hero games have been shipping for several years, and Activision told the court that because Gibson has waited so long, it's granted an implied license. Activision seems as perplexed about this as the average person. In a statement, Activision's general counsel, George Rose, called the legendary guitar maker "a good partner" and added that Activision has a lot of respect for them. "We disagree with the applicability of their patent and would like a legal determination on this," said Rose.[2] Gibson has claimed the concept of pushing buttons on a guitar-shaped controller in time with music violates a 1999 patent which deals with technology to "simulate a musical performance". Activision, whose Guitar Hero franchise has sold over fourteen million units since 2005, saw its shares slide 1.14 percent whilst filing a lawsuit asking the U.S. District Court for Central California to declare Gibson's patent invalid and to bar it from seeking damages. Gibson has been a guiding force in the creation of the Guitar Hero franchise, with Activision licensing the likeness of their guitars for use with the game. "Gibson is a good partner, and we have a great deal of respect for them. We disagree with the applicability of their patent and would like a legal determination on this."[3]
Activision shares closed down 1.14 percent at $26.82 on Nasdaq on Wednesday. The "Guitar Hero" series has sold more than 14 million units in North America and raked in more than $1 billion since its 2005 debut. Gibson, whose electric guitars are used by legendary blues and rock artists such as Eric Clapton, B.B. King and Slash, has been a high-profile partner in the "Guitar Hero" games, with Activision licensing the rights to model its controllers on Gibson guitar models and to use their likenesses in the game. "Gibson is a good partner, and we have a great deal of respect for them. We disagree with the applicability of their patent and would like a legal determination on this," Activision general counsel George Rose said in a statement.[4] Activision general counsel George Rose said the publisher respected Gibson but disagreed that the games infringed on the guitar maker's patent and was seeking a legal decision on the matter. "Gibson is a good partner, and we have a great deal of respect for them. We disagree with the applicability of their patent and would like a legal determination on this," Mr Rose said.[5] Unsurprisingly, Reuters reports that Activision has asked the U.S. District Court of Central California to invalidate Gibson's patent and prevent the guitar maker from seeking damages. In a statement issued to GameSpot, Activision general counsel George Rose said, "Gibson is a good partner, and we have a great deal of respect for them. We disagree with the applicability of their patent and would like a legal determination on this."[6] Activision filed a lawsuit on Tuesday in the U.S. District Court in Central California to render the patent invalid, citing that Gibson gave an implied license by waiting three years to make a claim. "Gibson is a good partner, and we have a great deal of respect for them. We disagree with the applicability of their patent and would like a legal determination on this," Activision general counsel George Rose said in a statement. We'll see just how good of friends they are when the dust has settled.[7] "Gibson is a good partner, and we have a great deal of respect for them," said Activision general counsel George Rose. "We disagree with the applicability of their patent and would like a legal determination on this." In related news, media conglomerate Viacom withdrew its Guitar Hero-related lawsuit against Activision yesterday, reports Variety.[8]
Santa Monica's Activision (NASDAQ: ATVI), in turn, has filed a lawsuit against Gibson, seeking to declare Gibson's patent invalid and bar Gibson from seeking damages. According to the Reuters report, Activision said that by waiting three years to raise its claim, Gibson had granted an implied license for any technology. Gibson has been an integral partner in the "Guitar Hero" series, as the controllers are shaped like some of Gibson's classic models, such as the SG and Les Paul, and in turn, having characters in the game playing Gibson guitars. [9] Viacom subsidiary Harmonix Games recently filed a $14.5 million lawsuit against Guitar Hero franchise owners Activision for unpaid downloadable content and Guitar Hero III: Legends of Rock royalties. The threat of a lawsuit scared Activision enough to bring them to the negotiation table, where they are now settling the issue out of court. The suit, which was filed at the California Superior Court in Los Angeles, claims that Harmonix's original deal with Red Octane and Activision granted them a royalty rate twice as high as they were receiving if any sequels to their Guitar Hero game "incorporates, uses, or is derived from Harmonix property." The filing claims that, " has failed to pay Harmonix its full share of royalties earned in connection with Harmonix's essential and undisputed contributions of its intellectual property and technology to the bestselling video game Guitar Hero III." Without these payments from Activision, Harmonix believes its losses "will mount at the rate of tens of millions of dollars per year." Activision has countered, stating that it has paid all that is required of them.[10] Now owned by MTV Networks, Harmonix claims that the second, lower, royalty rate has been used. According to the lawsuit: " has failed to pay Harmonix its full share of royalties earned in connection with Harmonix's essential and undisputed contributions of its intellectual property and technology to the bestselling video game Guitar Hero III '. Relationships between Harmonix and Activision have appeared to be strained since the two companies parted company, with both blaming each other for a lack of compatibility between Rock Band and Guitar Hero peripherals.[11]
Harmonix asserts that Activision paid it the lower royalty rate - half that of the higher rate - which is supposed to apply only if a new developer builds a "Guitar Hero" sequel essentially from scratch. "(Activision) has failed to pay Harmonix its full share of royalties earned in connection with Harmonix's essential and undisputed contributions of its intellectual property and technology to the bestselling video game `Guitar Hero III,"' the lawsuit asserts.[12]
Viacom-owned Harmonix Music Systems, the developer of the first two "Guitar Hero" games and "Rock Band," on Monday filed a lawsuit alleging that Activision owes it royalties of more than $14.5 million for "Guitar Hero III" and other spinoff products from the hit franchise.[12] Harmonix Files, Withdraws Activision Lawsuit Officials from Rock Band developer Harmonix have withdrawn a lawsuit against Guitar Hero publisher Activision, which had alleged that Activision still owed the company more than $14.5 million in royalties for Guitar Hero III and other spin-offs. According to a report in trade journal Variety, the lawsuit was filed on Monday but withdrawn the next day, with both companies electing to continue discussions out of court.[11]
Reuters reports that Activision has filed suit in U.S. district court asking that a 1999 patent belonging to Gibson, related to technological simulations of musical performance, be declared invalid. Gibson has not filed suit against Activision, but they said they have sent a letter asking the Guitar Hero publisher to obtain a license from the company or stop selling the games.[13] As if you needed any more evidence that Guitar Hero had made it big: Guitar company Gibson has accused the game's maker, Activision ( NSDQ: ATVI ), of violating a 1999 patent for "technology for simulating a musical performance." Activision disclosed in a court filing, as part of an attempt to get the patent made invalid, that Gibson made its view known in a January letter, according to Reuters. Gibson wants to enjoin Activision from selling the game, says Bloomberg but it's a safe guess that the problem could go away for the right price. An odd aspect of this is that the two companies have partnered in the past on IP issuestrademark Gibson guitars have been featured in the game itself (see here ), though that's obviously separate from a patent issue.[14]
Gibson Challenges Activision Over Guitar Hero Patent According to a Reuters report, guitar manufacturer Gibson and Activision have entered into a legal discussion over Guitar Hero, with Gibson alleging that the game violates a 1999 Gibson patent. Despite entering into a licensing agreement with Activision to replicate Gibson's guitar designs for Guitar Hero III, Gibson is alleging that Activision violated one of its patents, which governs "technology used to simulate a musical performance" according to the Reuters story.[1] FAMOUS guitar company Gibson and the publisher of the wildly popular Guitar Hero series are involved in a legal stoush over who owns the idea behind the games. Gisbon has alleged the Guitar Hero series, in which players press buttons on a guitar-shaped controller in time with notes on screen, violates its 1999 patent for technology to simulate a musical performance.[5]
It's hard to be the bestor well, at least the biggest, as Activision is finding out. The latest legal dispute for the gaming mega-publisher comes from their dear friends over at Gibson, whose guitars were the basis for the Guitar Hero controller designs. Gibson claims that Guitar Hero infringes on a patent they made in 1999 for a musical performance simulator. "Based on our preliminary analysis, the 'Guitar Hero' software (including any expansion packs) and the guitar controller provided by Activision being used as a musical instrument (packaged with the software or sold standalone) are covered by the patent," Gibson's law firm said in its January 7 letter.[7] PRS took the guitar off the production line while the court settled the matter. If what is quoted as their patent is accurate - "a method for simulating a live performance using a musical instrument, a 3D headset with stereo speakers and a pre-recorded concert", then it will fail miserably, as there is no way a reasonable person could consider a game controller to be a musical instrument, and the product does not come with a 3D headset. Not to mention the fact that this game series has gone through three iterations now before Gibson, who were an official licensor of their trademarked guitar designs in the game, which was made with the company's support, suddenly yank this patent out of thin air? If their lawyers thought the game infringed upon the patent, why the heck didn't they either refuse their endorsement or demand more royalties or some form of rights over the game back when the licence agreement was drawn up. Short of it is, they're just trying to squeeze more money out of Activision and Guitar Hero than they have a right to.[5] The patent, a copy of which was included in Gibson's court filing, details a method for using instruments to simulate a live performance, and provides for a 3D headset with stereo speakers and a prerecorded concert. Gibson has licensed the use of its guitars as controllers and in-game items for Guitar Hero since the first installment in the franchise debuted in 2005. Most recently, Activision licensed nine different Gibson guitars to appear in Guitar Hero III: Legends of Rock, as well as modeled its controller after the company's popular Les Paul.[6]
The music played on the instrument would then be recorded on a separate track and available for playback with the rest of the tracks to simulate playing in a concert. Activision's Guitar Hero does have a similar premise, however it's played on a "pretend" plastic guitar and is a game where the player tries to mimic notes in concert represented on the monitor by graphical musicians in a concert. Activision is disputing the claim that they infringe upon Gibson's patent and is asking the federal court to provide an official ruling. While we are certainly not patent experts, these two systems do seem to have similarities but also appear to have different purposes, especially since Gibson doesn't have a record of creating video games, or games of any sort.[15] The Seattle Post Intelligencer reports that Activision filed a complaint against Gibson, which is apparently claiming that Activision is infringing a patent for creating a "simulated musical concert experience." It is reported that the claim was made after Gibson told it to get a license or stop selling Guitar Hero. A look at the patent, which was originally filed back in 1998, shows a device complete with similar fret buttons similar to those on Activision's peripheral (albeit with a few more for your fingers to play with). But. while the claim has merit, this extract suggests Gibson might be trying it on a bit; "A musical instrument. having one or more pick-ups or other transducers that will generate electrical audio signals, when the guitar is played". It's a bit of a stretch to claim that Guitar Hero's "guitar" buttons and rocker switch are pick-ups or transducers, and they certainly do no generate electrical audio signals. It's a patent EA and MTV Games should be wary of as it would be equally applicable to the companies' Harmonix-developed Rock Band.[16] In the second suit concerning Guitar Hero to surface for the week, longtime RedOctane partner Gibson Guitar Inc. has filed suit against Activision claiming patent infringement, reports Reuters. In a letter sent to Activision in January, Gibson claims Guitar Hero infringes on one of its patents granted in 1999 for "technology for simulating a musical performance."[6] Longtime supporter of Activision's best-selling rhythm franchise claims game violates patent filed in 1999 for "technology for simulating a musical performance." Last year, Activision discovered that its $100 million purchase of RedOctane in 2006 had paid off in spades, with the publisher touting the fact that the Guitar Hero franchise had shifted 14 million-plus units in North America alone and aggregated revenue of more than $1 billion in the process.[6]
Activision has therefore filed a suit asking the U.S. District Court for Central California to declare Gibson's patent invalid and to bar it from seeking damages. The company alleges that Gibson had granted an "implied license" by waiting three years to raise its claim. The Guitar Hero franchise has sold more than 14 million units in North America and raked in more than USD 1 billion since its debut in 2005.[17] Activision is asking a U.S District Court in California to declare Gibson's patent invalid. The Guitar Hero franchise, now in its third iteration, has sold more than 14 million games -- and as our Editor In Chief discovered on a Silicon Valley trip last fall, the kids here love it. The first two games were developed by Harmonix for publisher RedOctane, but in 2006 RedOctane was bought by Activision, which developed the third game through its own subsidiary, Neversoft.[18]
The latest version of the game, Guitar Hero III, ships with a controller based either on the Gibson Les Paul model guitar or on the Kramer Striker, which is also a Gibson brand. For Activision's part, they said that Gibson's patents are invalid, and also that by waiting three years before filing suit, Gibson had granted an "implied license" to their technology.[13] "Gibson requests that Activision obtain a license under Gibson's. patent or halt sales of any version of the Guitar Hero game software," the letter said. Activision argued that by waiting three years to raise its claim, Gibson had granted an implied license for any technology.[5] According to the letter sent to Activision, Reuters reports that Gibson is requesting that the publisher "obtain a license under Gibson's. patent or halt sales of any version of the 'Guitar Hero' game software."[6]
A copy of Gibson's patent included in the court filing showed a method for simulating a live performance using a musical instrument, a 3D headset with stereo speakers and a pre-recorded concert. In Gibson's January 7 letter, included in Activision's lawsuit, the guitar maker said "preliminary analysis" revealed the game's software and guitar-shaped controllers being used as a musical instrument violated its patent.[5] As quoted by Reuters, Gibson's letter to Activision of January 7 reads, in part, "Based on our preliminary analysis, the ' Guitar Hero ' software (including any expansion packs) and the guitar controller provided by Activision being used as a musical instrument (packaged with the software or sold standalone) are covered by the. patent.[1]
Guitar manufacturer Gibson, whose guitar body styles are licensed for Guitar Hero controllers, says Activision is infringing on a nine year old patent for technology to simulate a musical performance.[19] Gibson says the game violated a 1999 patent for "technology to simulate a musical performance." The twist: Gibson already has a deal with Guitar Hero: It has licensed out its Les Paul line as the inspiration for one of the game's guitar shaped controllers.[18] Gibson claims that the patent, which covers technology meant to simulate a musical performance, is violated by the game play of "Guitar Hero," where users hit buttons on a guitar-shaped controller in correspondence with "notes" displayed on the game's screen.[9]
SAN FRANCISCO/LOS ANGELES (Reuters) - Gibson Guitar Inc has told Activision Inc (ATVI.O: Quote, Profile, Research ) that its wildly popular "Guitar Hero" video games infringe one of Gibson's patents, and Activision has asked a U.S. court to find the claim invalid.[4] LOS ANGELES (AP) — Video game publisher Activision Inc. has asked a federal court to declare that its popular "Guitar Hero" game does not violate a patent held by real-guitar maker Gibson Guitar Corp.[20]
Activision Inc., the second-largest U.S. video-game publisher, claimed in a lawsuit that its "Guitar Hero" game doesn't infringe a Gibson Guitar Corp. patent for creating a "simulated musical concert experience."[21]
Following guitar manufacturer Gibson's claims that the wildly successful Guitar Hero franchise violates a 1999 patent, Guitar Hero owner Activision has filed a lawsuit seeking to invalidate Gibson's patent.[8] Gibson Challenges Activision Over Guitar Hero Patent According to a new report, guitar manufacturer Gibson and Activision have entered into a legal discussion over the giant Guitar Hero franchise, with Gibson alleging that the game violates a 1999 "simulated music performance" patent.[1]
The hits just keep on coming for Activision (ATVI) and its hit Guitar Hero game. Hours after Viacom's Harmonix agreed to settle its suit with Activsion that stemmed from a royalty dispute, Gibson Guitar Inc. told the company that its game violates a patent.[18] The suit also claimed that Activision still owes Harmonix royalties derived from Guitar Hero song downloads, ancillary products, and in-game advertising. Per the royalty agreements those proceeds are due only if Harmonix's technology was used in the creation of the game.[22] A legal agreement made during the production of Guitar Hero I holds that "if a sequel game to Guitar Hero I is produced by a game developer other than Harmonix, but incorporates, uses, or is derived from any Harmonix Property, Harmonix is entitled to an agreed-upon percentage royalty on sales of the sequel game, as well as additional royalties in the form of specific percentages of revenues" from peripheral products like controllers and downloadable songs.[23]
Harmonix claims in the lawsuit that the original agreement with publisher RedOctane, now owned by Activision, stipulates that the higher of two royalty rates should be paid if any subsequent Guitar Hero sequel "incorporates, uses, or is derived from Harmonix property."[11] A copy of the lawsuit seen by Ars details the royalty discrepancy. Harmonix claims that Activision and RedOctane have "failed to pay Harmonix its full share of royalties earned in connection with Harmonix's essential and undisputed contributions of its intellectual property and technology to the best selling video-game Guitar Hero III.[23] Activision then moved the development of Guitar Hero III to internal studio Neversoft. "(Activision) has failed to pay Harmonix its full share of royalties earned in connection with Harmonix' essential and undisputed contributions of its intellectual property and technology to the best-selling videogame Guitar Hero III," reads the lawsuit.[24]
Lawsuit, which was filed at California Superior Court in Los Angeles, alleges that Activision owes Harmonix approximately $14.5 million in royalties because it used the developer's technology to create "Guitar Hero III," which is similar to the first two installments.[12] Harmonix has withdrawn a lawsuit filed on Monday claiming that Activision has failed to pay it sufficient royalties for Guitar Hero III, which was produced after the two companies parted ways as Harmonix went to work on Rock Band.[16] The Guitar Hero and Rock Band compatibility issue remains a point of contention between the two companies, and now a new issue has arisen: Harmonix filed a lawsuit on March 10 against Activision for unpaid royalties only to shortly thereafter withdraw the suit and meet privately with the company.[23]
As the original developer of the first two Guitar Hero games, and expansion Rock the '80s, Harmonix claims that Activision still owes the company royalties from continued use of legacy technology in Guitar Hero III.[11] Activision is already involved in a dispute with Harmonix over alleged royalties due over Guitar Hero III. Gibson has been a high-profile partner in the Guitar Hero videogames, as Activision has licensed the rights to model its controllers on Gibson guitars - not to mention using the likenesses of such guitars in the game.[17] Prior to the claim Gibson had been a high-profile partner in the Guitar Hero games, with Activision licensing the rights to model its controllers on Gibson guitars and to use their likenesses in the game.[5] Guitar Hero puts you in the role of a rock and roll band's guitar player -- you pound out notes and chords using a guitar shaped controller configured with buttons that match what's happening on the screen. Activision has licensed Gibson guitar designs, logos and other intellectual property for use in its games.[2] In a Jan. 7 letter to Activision, Gibson attorney F. Leslie Bessenger said the video game producer was "taking advantage of Gibson's patented technology without properly compensating Gibson." Gamers who play "Guitar Hero" use wireless controllers shaped like guitars -- most of them modeled after famous Gibsons -- jamming along with animated on-screen musicians.[25] Gibson Guitar has told Activision that its immensely popular Guitar Hero video games infringe one of Gibson's patents.[3] Gibson Guitar Corp. is accusing Activision of violating one of their patents with the popular Guitar Hero series of video games.[15]
Activision has been sued by Gibson Guitar, their partner in the highly successful Guitar Hero video game franchise.[26]
"Gibson requests that Activision obtain a license under Gibson's. patent or halt sales of any version of the Guitar Hero game software."[17] Activision claimed that Guitar Hero does not violate Gibson's patent, and that the three-year delay between the debut of Guitar Hero and Gibson's allegation has granted the company an implied license.[8] Gibson Guitar has alleged that Activision's Guitar Hero videogames infringe one of the company's patents, causing Activision to file a lawsuit asking a court to find the claim invalid.[17] Activision filed a lawsuit asking the U.S. District Court for Central California to declare Gibson's patent invalid and to bar it from seeking damages. Gibson made its claims in a letter sent to Activision in January, a copy of which was included in Activision's lawsuit.[4]
Game publisher Activision has filed a lawsuit in California to declare Gibson's patent invalid and prevent the company from seeking damages.[5]
Video game maker Activision has filed suit against Gibson Guitar, saying a patent held by the guitar manufacturer is invalid.[2] "Gibson has been aware of the 'Guitar Hero' game for many years," the suit says, and "encouraged Activision to manufacture and sell devices it now alleges infringe the. patent."[25]
Lawsuit was clearly intended in large part to establish a precedent for future royalties, as Activision plans to regularly produce new "Guitar Hero" games. It has already announced three follow-ups, including one based on music from Aerosmith, that will come out later this year. Harmonix says in the suit that if Activision continues to pay royalties at the current rate, its losses "will mount at the rate of tens of millions of dollars per year."[12] Harmonix claims that Activision paid out the lower royalty rate, despite using Harmonix tech to build Guitar Hero III, and therefore owes Harmonix another $14.5 million in royalties.[22] Viacom, which purchased Guitar Hero creator Harmonix Music Systems in 2006 while Activision purchased the Guitar Hero brand name itself, had charged Activision with neglecting royalty payments over the technology used in Guitar Hero III: Legends of Rock, which was developed by Activision subsidiary Neversoft.[8]
SPOnG dipped into a Guitar Hero announcement from last year and found the words, ' Guitar Hero III: Legends of Rock lets fans thrash and burn with new wireless guitar controllers available for each platform, including exclusive Gibson Guitar's Les Paul model for the Xbox 360". It's clear that Activision makes no bones about the fact that it models its peripherals on the Gibson brand.[16] The Guitar Hero series has sold more than 14 million copies in North America and raked in more than $US1 billion ($1.06 billion) since the first title was released in 2005. Gibson, whose electric guitars are used by legendary blues and rock artists such as Eric Clapton, BB King and Slash, made its claims in a letter sent to Activision in January.[5] According to the report, Gibson sent Activision a letter in January requesting that the Guitar Hero pub apply for a license or stop selling the game.[19] I agree that it should be inapplicable. Not only does Gibson's patent sound too different - if vaguely like Guitar Hero, they should have spoken up about it when approached to have their guitars featured in this very game. They have not only failed to protect their intellectual property in a timely manner, they have granted an implied license by specifically offering their name and products to this project.[19] We'll see how the court decides. If they find that Guitar Hero (and Rock Band, by implication) fall under Gibson's patents, it could be a big payday for the guitar makers.[13]
Most people are going to jump in the bandwagon and profess their hate for Gibson now, but save it. they have a valid complaint, Harmonix did license the Gibson name and shape so why didn't Activision? Also, if Gibson has been pestering them since January and Activision filed a motion to make Gibson's patent invalid it makes Gibson case look even more legit. It's an interesting case though, I think Rock Band/Guitar hero is a great vehicle for bands to deliver songs or get themselves known beyond certain music circles, however that doesn't give Activision the right to bypass bands or manufacturers.[19] Gibson is trying to get Activision to stop selling "Guitar Hero" until it gets a license under the patent, according to the complaint.[20] Nashville-based Gibson claims that Activision Inc.' s "Guitar Hero" violates a 10-year-old patent Gibson owns for a virtual reality music system.[25]
If that weren't enough, Activision is also fending off claims by Gibson that it has infringed one of the guitar manufacturer's patents.[16]
Based on Gibson's vague patent, Harmonix/MTV would have had to license the system for Rock Band too I suppose? And I believe Activision did approach Gibson re: modelling the controllers after their guitars and paid them for the license to do so.[19] In a March 10 letter to Gibson, Activision's senior litigation counsel, Mary Tuck, said that the game company "was not interested in renewing the license and marketing support agreement" with Gibson and that was why Gibson has brought up the patent.[25] Unless Activision has been flagrantly flashing Gibson's name about without having ever reached an agreement with the company, the guitar maker has clearly been aware of what the publisher is doing for some time. Given that, even assuming Gibson has a case, the question, 'Why is this happening only now?' is raised in a huge way.[16]
The Gibson patent, granted in November 1999, outlines a system that simulates a concert experience with a head-mounted display with speakers, an eight-channel mixer, a DVD player and a guitar. Activision's suit says Gibson forfeited its rights by failing to raise the patent issue earlier.[25] According to the suit, as reported by Reuters, Gibson alleges that the series infringes on a patent for technology that simulates a concert performance via pre-recorded audio and a musical instrument.[8] According to a Reuters report, Gibson made the claim in a leter sent to Activision in January. It has a 1999 patent for technology to simulate a musical performance.[17] Gibson said the games, in which players press buttons on a guitar-shaped controller in time with notes on a TV screen, violates a 1999 patent for technology to simulate a musical performance.[4]
I'm reading the "Simulated Performance Tchnology" to be the Gibson guitar, since the concept of simply hitting coloured buttons to play a music game pre-dates Gibson's own 1999 patent.[19]
According to a report from Reuters, despite or perhaps because of, the success of the Guitar Hero partnership, it seems Gibson Guitar is a little miffed about the way the game is played. At its heart, all the Guitar Heroes to date are simple games, requiring the player to use fret and strum buttons on their replica Gibson Guitar game peripheral in time with falling notes on the screen.[26] Gibson is suing Activision for not having permission to use the products GIBSON already authorized to have in Guitar Hero? Wow. That's pathetic.[6]
Essentially, Harmonix has pointed the finger at Activision for incorporating "coding, patents, trade secrets, and other proprietary implementations of design and gameplay elements" in Guitar Hero III.[23] Harmonix has hounded Guitar Hero publisher Activision for missing royalty payments to the tune of $14.5 million.[10] Activision and Harmonix are currently in discussions over USD 14.5 million in royalties that the publisher allegedly owes the Guitar Hero developer.[24]
Harmonix created the first "Guitar Hero" game for publisher RedOctane, which was bought by Activision in 2006.[12] The popularity of Activision's "Guitar Hero" game franchise was never in doubt but now the company c.[15] The hugely popular "Guitar Hero" series is a crucial franchise for Activision, selling more than 16 million copies worldwide.[25]
Activision countered that it has paid Harmonix all of the royalties that the developer is owed for "Guitar Hero."[12] Harmonix estimates the unpaid royalties at $14.5 million. It also claims that it has not been paid any money it is owed for "Guitar Hero" song downloads, in-game advertising, and other ancillary products. Royalties on those products only apply, under the agreement with RedOctane, if Harmonix's technology is used in sequels and spinoffs.[12] According to the suit, two agreements covering the royalty rate for Harmonix were drawn up to deal with the possibility of a Guitar Hero game being created by another developer.[22] One agreement was valid if a new Guitar Hero was built from scratch; a higher one was appropriate if the new game "incorporates, uses, or is derived from Harmonix property."[22]
The suit, filed in the U.S. District Court for Central California, focuses on the popular Guitar Hero series of video games. It's a bizarre twist to what up until now appeared to be a success story with the two companies.[2] Gibson Guitar Corp., which once harmoniously licensed its name to the blockbuster "Guitar Hero" video games, is strumming a different tune.[25]
The company, which is based in Santa Monica, Calif., brought the lawsuit after it was told by Nashville, Tenn. -based Gibson to get a license or stop selling "Guitar Hero," according to the complaint.[21] The company reported last month a 90 percent increase in profit for the third quarter ended Dec. 31, in part due to strong sales of "Guitar Hero III: Legends of Rock."[20] Guitar Hero III: Legends of Rock, is the latest major edition of the game. It's the first game in the series to make it to the Mac and PC, courtesy of Aspyr Media. The game's availability isn't expected to be impacted by this legal issue.[2] Activision has countered that it has paid the developer for all royalties on the Guitar Hero games.[24] Activision'''s hugely successful '''Guitar Hero''' games have let gamers experience what it'''s like.[15]
Last year, MTV published "Rock Band," Harmonix's new game that adds drums and vocals to the "Guitar Hero" formula.[12] The withdrawn suit alleged Harmonix is entitled to a higher royalty rate on the sale of "Guitar Hero," one of the gaming industry's bigger recent hits.[27] Suit claims that under Harmonix's original agreement with RedOctane, it should be paid the higher of two royalty rates if any sequel it doesn't build "incorporates, uses, or is derived from Harmonix property."[12] The suit claimed that, under an agreement made with RedOctane, Activision is obliged to pay Harmonix the higher of two rates in the event that any sequel it isn't involved in "incorporates, uses, or is derived from Harmonix property."[16]
Harmonix Music Systems filed a lawsuit on Monday, but the suit was withdrawn on Tuesday as Activision agreed to talks out of court, reports Variety.[24] Reuters reports that Activision has in turn filed suit in federal court to render that patent claim invalid.[19]
Gibson's 1999 patent covers a virtual-reality device that included a headset with speakers and that simulated participating in a concert, according to a complaint filed on Tuesday by Santa Monica, Calif. -based Activision in U.S. District Court in Los Angeles.[20] Activision, in a complaint filed Tuesday in federal court in Los Angeles, seeks court orders that it doesn't infringe the technology and that the Gibson patent isn't valid.[21]
Reuters also noted that even were the patent upheld, Gibson's three-year dalliance has granted Activision an implied license for the use of the technology.[6] Interestingly, Gibson previously granted Activision the license to use Gibson instruments in the games and as a model for the series' guitar-shaped controllers.[8]
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. It seems like Gibson had a patent on something close to the whole game but with a head mounted 3d display.[19] A copy of Gibson's patent included in the court filing showed a method for simulating a live performance using a musical instrument, a 3D headset with stereo speakers, and a pre-recorded concert.[13]
You can judge for yourself how close it is to Guitar Hero (try to read it through the eyes of an East Texas juror): "A musician can simulate participation in a concert by playing a musical instrument and wearing a head-mounted 3D display that includes stereo speakers.[14] A copy of the patent included in the lawsuit and dated Nov. 23, 1999, describes a device that lets a user "simulate participation in a concert by playing musical instrument and wearing a head-mounted 3-D display that includes stereo speakers."[20] The actual patent is: A musician can simulate participation in a concert by playing a musical instrument and wearing a head-mounted 3D display that includes stereo speakers.[19]
The dispute arose in January, when Gibson attorneys sent Activision a letter accusing it of violating a patent titled "System and Method for Generating and Controlling a Simulated Musical Concert Experience," according to the complaint.[20] "Gibson clearly believes the patent could be worth a lot more than the royalties the company is already receiving from Activision," said Colin Sebastian, an analyst with Lazard Capital Markets.[25]
Activision says it doesn't want or need a license under the patent. "We disagree with the applicability of their patent and would like a legal determination on this," George Rose, Activision's general counsel, said in a statement Wednesday.[20] Activision says that isn't the case and in a lawsuit filed Tuesday in Los Angeles asked a federal judge to settle the matter. "We believe their claims will not withstand any objective scrutiny," George Rose, Santa Monica-based Activision's general counsel, said in a statement.[25] Harmonix says that if Activision continues to pay out royalties at the current rate, Harmonix's losses will will "mount at the rate of tens of millions of dollars per year." Activision, for its part, "believes it has made sufficient payments to Harmonix and the claims otherwise do not have merit," according to General Counsel George Rose.[22]
With no end in sight to Guitar Hero spin-offs, sequels, or downloadable content, the need to clearly define whether or not Harmonix's claims are justified is obvious. [22] Harmonix developed the first two Guitar Hero titles for publisher RedOctane.[22]
Im highly sorry for my double Post. I don't even like Guitar Hero but this patent-troll means I won't buy any more Gibson products.[13]
Activision, meanwhile, published "Guitar Hero III," which was made by a new developer, Neversoft.[12] "Rock Band" was a solid hit, selling more than 1.5 million units in the U.S. "Guitar Hero III" sold a boffo 6.5 million units.[12]
Overall, the "Guitar Hero" franchise was the industry's biggest, generating more than $820 million in domestic revenue last year according to the NPD Group.[12] "Guitar Hero" users play songs using a stringless, plastic guitar by following graphics displayed on a TV connected to a game console.[20] Only now have they realised that a game called "Guitar Hero" is about using a guitar to play music? Please, they're just looking for more money.[26]
Activison hit a home run when it came out with its '''Guitar Hero''' console games two years ago.[15]
The plastic guitar shaped controllers are musical instruments?? Who knew we gamers had musician blood in is. Guess those 9 yr old kids that can play the game on expert need to be inducted into the rock and roll hall of fame.[19] Gibson's patent seems too vague to me, and more of an idea than any actual invention. For example Immersion owns the rumble patent used on many game controllers, but they only own a patent for several different types of vibrating controllers not a patent on vibrating controllers.[19] Of course, I'm sure that anyone who makes music games is hoping that Gibson's patent doesn't hold up.[13]
Gibson allowed hell, encouraged Red octane to make the guitars. Its posible that would debunck the case, but, you could use my argument there to get around it. Very sad. lol This is just a very sad case entirely, maybe instead of a lawsuit gibson could say they want a persentage next time. [6] Gibson is just lawsuit happy. Years ago, they sued a rival guitar maker, Paul Reed Smith, because one of the PRS guitars looked a lot like a Les Paul. In spite of there being countless manufacturers out there that put out Les Paul copies, when PRS put their Singlecut model out and it bore a resemblance to the LP, they sued.[5] Another really lame lawsuit by Gibson. Sometimes I'm ashamed to sell their guitars for a living.[19]
Activision has responded by filing a lawsuit that seeks to invalidate Gibson's claims for damages.[1]
It says Gibson is suing Activision over the use of some "Simulated Performance Technology" or something of that sort.[19] Activision pays an undisclosed amount for Gibson's trademark under a license agreement. It is unclear when that agreement expires.[25] Tuck didn't say in the letter when the agreement would end. Gibson executives didn't respond to requests for comment and Activision executives said they couldn't comment.[25]
Gibson notified Activision of the infringement in a letter on January 7, stating that Activision needed to obtain a license from Gibson.[8]
Gibson are asking Activision to pay further licensing for the gaming franchise, or cease sales.[26] At the same time Activision could just say to gibson, F off and go with someone else next time.[6] I thought Activision might have changed since my troubles trying to get paid on time, paid at all (without trips to court), unauthorised derivatives and the rest of the crap they pulled last century.[11]
According to Variety, the Harmonix lawsuit was retracted yesterday, just a day after it was filed. It is reported that the two have decided to settle out of court, dodging the perils of a messy and public legal battle.[16] The company agreed to settle the dispute with Harmonix out of court, rather than face a drawn-out legal proceeding.[22]
It would appear that Harmonix isn't the only Activision partner who has is in a legal tiff with the publisher.[19]
I wonder how far Harmonix can take that argument. @RamblinLonghorn - I think that what they are really talking about is the method of mapping notes (pitch, hold, tremolo, etc) to the controller and then syncing the display of the notes to marked events in the audio and detecting if the player hit the marks. To make it different, I'd imagine they would have to change to something like auto-detecting or computationally deriving interesting notes and a way to "gamefy" it. I think they would then be talking to the Audiosurf guys, but IANAL. What I find ironic is that Harmonix didn't seize this situation as a bargaining tool with Activision over the controller neutrality issue. If Harmonix really gave a shit about players being able to use any controller they have, they might have used real leverage like this instead of the negative PR route they ended up taking.[22]
Isn't there a ton of prior art in this area? It's my understanding that Harmonix didn't exactly invent the idea of video game instrument controllers.[19] Atari parent company Infogrames Entertainment today announced the appointment of former Sony executive Phil Harrison as the company's new president. The strong performance of Harmonix's multiplayer rhythm game Rock Band (PS2, PS3, X360) may have earned its former shareholders upwards of $208 millio.[8] A big part of the game experience is with the guitar peripheral itself, which, though sporting multicoloured buttons on the neck, adds much to the immersion into rock god fantasies of the players.[26]
That's nine years ago. Someone at Gibson marketing saw Guitar Freaks and began licking their lips in an insane fury, rubbing their hands together like greedy thieves. They patented "videogame with a guitar controller". They waited nine years.[19] Neither is Gibson Guitars. They don't kill elephants in Africa, or suppress human rights, or dump toxic chemicals in the ocean. In this age of the internet people pick up on an idea that a certain company is "evil" and it spawns a life of it's own.[6] How pathetic is it that the company had to get Gibson's approval for using the guitar's likeness. all the paperwork is inked and now Gibson wants more money.[6]
Gibson (along with fender) made the first electric guitars in the 50's and have been selling millions of guitars every year for decades, imagine the $$$?!?!?! Not to mention Gibson amps, guitar straps, t-shirts, strings, guitar cases, guitar spare parts, acoustic guitars, guitar stands, and on and on and on, and who could forget all the smaller companies that gibson owns like Epiphone, that also make - yes, millions of guitars a year, and cases, and strings and, you get the picture.[5] Back in the mid 80's that was the case. However they have grown considerably and now the company makes over $500 million annually. They own piano makers Baldwin and Wurlitzer as well as guitar companies like Steinberger, Kramer, and Epiphone. They are poised to go public soon.[6]
Kings made the law, so the man would only be arrested if the king wanted. It's not as though Gibson is some company set up to nail patent infringement. If the claims are valid then yeah, of course they're going to go for a piece of the pie when it's hot. [6] It's about a patent that Gibson owned about ten years ago and it was filed away and forgotten until now.[6] The Gibson patent appears to be much more geared towards a technical music recording and to help musicians practice and improve on performances.[15] The patent in question is owned by Gibson since 1999 and involves a system that would let a musician "virtually" participate in a pre-recorded concert while wearing a head-mounted 3D display with speakers.[15]
Im sorry. but its not like the franchise has been a secret. they even licensed Gibsons design for the controller before releasing the game. [19] Activision is simply making a game where users can pretend to be in a concert and play along in a competition to earn the most points.[15] Taken with the assured sequels that Activision is working on, Harmonix claims that it stands to lose "tens of millions of dollars per year."[23] "By withdrawing the suit, we can continue discussions with Viacom about claims each party may have," Activision said in a statement.[27]
If they sued MTV or EA or Harmonix, fine. The people they gave the license? They knew about the controllers, did they FORGET about their patent or something? Implied license FTW. Ubersj, it's not the same as the cop thing because the cop doesn't make the law. [6]
SOURCES
1. Gamasutra - Gibson Challenges Activision Over Guitar Hero Patent
2. Gibson, Activision in legal tussle over Guitar Hero | The Industry Standard
3. Gibson strings up Activision over patent - Gameplanet News
4. Activision's Guitar Hero violates patent: Gibson | Technology | Reuters
5. Gibson in stoush with Guitar Hero publisher | NEWS.com.au
6. Gibson Xploring Guitar Hero patent infringement - Xbox 360 News at GameSpot
7. Activision and Gibson Enter Legal Dispute Over Guitar Hero
8. Gibson Claims Guitar Hero Games Violate Patent; Viacom Drops Guitar Hero Royalty Suit - Shacknews - PC Games, PlayStation, Xbox 360 and Wii video game news, previews and downloads
9. Activision, Gibson in litigation over 'Guitar Hero' - Los Angeles Business from bizjournals:
10. The Escapist : News : Harmonix Sues, Settles with Activision Over Guitar Hero Royalties
11. Gamasutra - Harmonix Files, Withdraws Activision Lawsuit
12. Viacom withdraws 'Guitar' suit - Entertainment News, Home Ent News, Media - Variety
13. Gibson Says Guitar Hero Violates Patents | Game | Life from Wired.com
14. Guitar Hero: Gibson Asserts Patent Claims; Viacom's Harmonix Negotiating Higher Royalties | paidContent.org
15. Activision and Guitar Hero targeted in patent dispute - SlipperyBrick
16. Activision, Harmonix and Gibson in Guitarmageddon - News at SPOnG.com
17. Guitar Hero violates Gibson Guitar patent? // GamesIndustry.biz
18. "Guitar Hero" Maker Settles One Suit, Gets A New One - Silicon Alley Insider
19. Lawsuits: Gibson Adds To Activision's Legal Troubles
20. The Associated Press: 'Guitar Hero' Subject of Patent Dispute
21. 'Guitar Hero' maker files patent suit
22. Harmonix Withdraws Guitar Hero Lawsuit Against Activision | Game | Life from Wired.com
23. Harmonix sues Activision over royalties, withdraws suit
24. Harmonix and Activision in $14.5m Guitar Hero dispute // GamesIndustry.biz
25. Gibson picks fight over 'Guitar Hero' - Los Angeles Times
26. iTWire - Guitar Hero publisher sued by Gibson Guitar
27. Viacom Files Then Withdraws Suit Against Rival Activision
Get more info on Gibson picks fight over 'Guitar Hero' by using the iResearch Reporter tool from Power Text Solutions.
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