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ITC investigates claims that Nintendo stole local firm’s technology to make Wii

By Kathleen Miller
Examiner Staff Writer 10/12/08

U.S. International Trade Commission representatives are investigating claims that video game giant Nintendo stole technology from Rockville’s Hillcrest Laboratories to make the popular Wii entertainment system.

Hillcrest officials allege Nintendo violated four of their patents when creating the Wii, which uses a wireless handheld pointing device instead of a traditional wired controller to play games. Three of the patent infringement claims are related to the handheld pointing device, which translates human motions into on-screen cursor movement. The fourth deals with an interface display system that graphically organizes content for display on a television.

Hillcrest officials have released only one public statement after filing suit against Nintendo:

“While Hillcrest Labs has a great deal of respect for Nintendo and the Wii, Hillcrest Labs believes that Nintendo is in clear violation of its patents and has taken this action to protect its intellectual property rights,” the statement reads. Company officials say they have been using the technology in question since 2001, and hold 29 patents in this area around the world, and have filed for more than 100 related patents.

ITC officials say their decision to investigate the allegations does not indicate they believe Nintendo is guilty of patent infringement, but rather that Hillcrest’s allegations are sufficient to warrant investigation.

“These kinds of cases involve unfair practices and import trade,” ITC spokeswoman Peg O’Laughlin said. “The remedies are exclusion orders to keep products out of the country.”

O’Laughlin said hearings are scheduled for May 2009, but the investigation itself could go through December 2009 or longer.

Nintendo spokesman Chris Scibetta said in a written statement that company officials were not surprised that the ITC was investigating the claims.

“After a judge is assigned to preside over the investigation, Nintendo will have the opportunity to present its case,” Scibetta’s statement said.

“Nintendo respects the intellectual property rights of other companies, and believes that none of its products infringes the Hillcrest Laboratories patents. Nintendo intends to vigorously defend this action.”

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