OT: Gibson Suing Guitar Hero

[T-Bone]

Sad considering Gibson has been collaborating with Activision on this game for 3 years now

Gibson Suing Guitar Hero


SAN FRANCISCO/LOS ANGELES, March 12 (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.

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.

On Tuesday, 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.

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.

Gibson could not be reached for comment.

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.

"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 Jan. 7 letter. "Gibson requests that Activision obtain a license under Gibson's ... patent or halt sales of any version of the 'Guitar Hero' game software."

Activision said its games did not infringe Gibson's patent, and that by waiting three years to raise its claim, the guitar maker had granted an implied license for any technology. (Editing by Jeffrey Benkoe, Toni Reinhold)

[StringsOfJoy]

Thanks for the interesting news item T-Bone.

Part of me could hardly believe this when I read it. On the other hand, Gibson seems to have a knack for pursuing suicidal litigation.

Remember the PRS suit? LOL...worked like a charm didn't it? PRS's court victory greenlighted its ability to sell its Singlecut models with impunity.

Whoever is in charge of legal strategy at Gibson sounds like a moron. Either that, or they're being overruled by obstinate higher-ups (maybe it's CEO Juszkiewicz himself that is the problem). Whatever the case, these nuisance suits they file only end up biting them in the ass.

Activision is an $8 billion dollar company, which is the deep pocket that Gibson is trying to extort. Likewise though, they have the deep pockets for good lawyers as well and I'm betting they will swat Gibson away like a gnat.

[T-Bone]

My guess is that Gibson never expected this game to catch on like it did. They saw an easy way to advertise their brand and allowed it, but when sales took off, they wanted part of that money as well.

[StringsOfJoy]

I'd guess you're 110% right T-Bone.

It's scuzzy if you ask me: Gibson didn't or couldn't negotiate a better deal accounting for the success of the game. Activision took most of the risk under the deal and succeeded and now Gibson's back for a second bite at the apple. Gibson legal seems like has this heads I win, tails you lose attitude. If I did business with them, I'd factor that reputation into my bargaining position for sure.

I hope the folks at TC Electronics (the Danish company Gibson's merging with) have good counsel to protect their goolies down the line.

I also wish that Gibson -- whose products I do use -- would take a little more interest in innovation than it takes in litigation.

[NealIsGod]

Finally, the name Gibson will be synonymous with fake guitars.