30/11/06

“BeMania Legal Spat New Twist!” (#526)

Stinger REPORT Skinny!

(18/11/06) The Stinger comments on the breaking news of a possible settlement in the BeMania lawsuit concerning Dance Dance Revolution and its American imitator, but the possibility that ROXOR Games may have jumped the gun on the announcement could see Konami Corporation intensive their action against ’In The Grooves’ with their own ’Dance Dance Revolution SuperNova’. More questions are opened up with what is the situation with the Andamiro relationship regarding their ‘Pump It Up ZERO’ (PC Hardware) title and possible ramifications for the consumer titles fathered by the smash amusement release.

Main REPORT:

Since the Stinger first reported the legal battle brewing regarding the whole BeMania intellectual properties ownership and usage as far back as 2004 (Stinger #276) -- it was obvious that whatever happened it would not be pleasant for the industry. The whole Dance Dance Revolution – dance game platform – concept has proven one of the most profitable amusement concepts, many feeling that it has been the only product that kept the industry in the public eye of late.

Well-placed international sources had hinted in Japan and Europe that the legal action against the main companies deemed to infringe Konami Digital Entertainment’s IP would be taking on a new dimension in October – only recently TSR had reported the use of one of the infringing products in the Exer-Gaming sector (Stinger #511). That speculation was proven correct on October the 18th 2006.

It was released in a ROXOR Games web announcement that they and Konami Corporation had come to a mutual out-of-court settlement regarding the ongoing litigation issued against ROXOR. The settlement was made in the US District Court in the Eastern District of Texas and would see Konami now acquiring full control of the Intellectual Properties rights to the ‘In The Groove’ game franchise. This also included an additional settlement that would see ROXOR agree to respect all Konami IP rights.

This announcement sent the considerable BeatMania fan base buzzing with speculation, but it did not take long for the flipside of the situation to appear – with the Stinger informed that possibly not all the issues were so clear-cut. It would seem that though ROXOR had run the announcement, Konami Digital Entertainment had not agreed the final statement and that there were considerable unresolved issues and questions.

Coming only a few weeks after ROXOR launched ‘In The Groove 3’ (PC Hardware), ROXOR, a 25-strong independent developer of the amusement and consumer applications of the In The Groove concept, have also expanded their reach with interactive sports applications. The ITG franchise extending from being recognized by the Dance Sports association in Europe - to being one of the most popular of the BeatMania franchise internationally.

The legal suit posted by Konami originally alleged that ROXOR had undertaken unfair competition with the company’s ITG product converted to Konami hardware as a kit. ROXOR stickers placed on Konami hardware infringing IP and emulating the BeMania brand in a number of areas. In settling this there is the issue of other companies that Konami has cited as infringing their IP – this also includes the consumer games sector, with ROXOR licensor RedOctane (developer of the Guitar Hero concept so popular in the game scene – and similar to Konami's Guitar Freaks) one of the companies in their gaze.

As stated this case resumption would have far-reaching consequences for the amusement sector - especially those operating BeatMania style games. But a sudden flurry of interest in consumer game websites suggest that a possible legal spat against the successful Guitar Hero territory is dangerous for their market.

What Could this all Mean:

The smoke is still starting to settle regarding this agreement – questions flying around, concerning the legal settlement, included:

      - The big question; has this agreement been really ratified, or not? (If ROXOR has jumped the gun, we could be looking at some real fireworks.)

     - Will Konami or ROXOR distribute the amusement hardware from this point or does the agreement include consumer and amusement by Konami?

    - What of ROXOR’s relationship with Andamiro on their BeatMania game and what will Konami’s position be against their ‘Pump It Up ZERO’ (PC Hardware) title launched at AMOA?

    - Another important question will be from the operator’s perspective – with an estimated 16,000 ITG machines in circulation (not including the other illegally contested BeatMania rip-offs), can these individuals expect to see an update software kit – excluded to them with the suspension of sales following the start of the legal battle in 2005?

    - Or, will Konami use their new position to promote their equally popular ‘Dance Dance Revolution: SuperNova’ (BeMania PS2 Hardware)?