In The Beginning...

Legal Information:

Plaintiff: Magnavox

Defendant: Atari

Allegations: In 1972 Magnavox released a table tennis game for their play at home video game system called the Odyssey. The Odyssey was the first at home video game system. The system and its games were shown, played and marketed all over the growing world of Video games and at Magnavox trade shows around the world. This ping-pong game created for the Magnavox Odyssey was the first electronic table tennis game ever.
That same year after the release of the Magnavox Odyssey’s at home version of Ping-pong an Arcade version of the same type was created by Atari and was released under the name “ Pong”. Other smaller knock off versions of the ping-pong game also followed. After three years of pressure, in 1975, Magnavox sued Atari for patent and concept infringement of their ping-pong paddle game. Magnavox had evidence that the ideas leading up to the creation of their ping-pong game went back as far as 1966 and they had proof that the lead inventor for Atari’s pong had visited.

Status:
The case was settled out of court in favor of Magnavox in June 1976. Atari was to pay Magnavox $700,000 to become a license of the product. Other companies producing pong like games would have to pay royalties. Also, Magnavox obtained all rights to any products Atari created during the next year.


Bloggers Bit: It just shows you that even in the beginning of video games looking over your neighbors shoulder would hurt you in the long run. Patent law is tricky and even in today’s games especially with competing systems have similar games that are just enough different is essential. Personally at the time feel Atari got screwed. Lets just say that. But they really brought it upon themselves. Magnavox would probably have had a weak case if the head designer for Atari had not signed the guestbook at a Magnavox event showcasing the early stages of the game. If you know anything about designing game it takes a while to design a game and depending on the time frame Atari could have used that as a defense. Overall Magnavox only really won because they were the bigger dog in this fight. If they took it to court Atari may have had a chance. Unfortunately Atari was a newer company and the estimated court costs would have been approximately close to 1.5 million dollars, which would have taken them out of the running. In the Long run I feel Atari won. First of all Atari did not develop any products during the year in which Magnavox had control of them. It has been said all work was done under the table and covered very well. Secondly and most importantly how many people know what an Odyssey is but how many people know what Pong is. There you go Atari.

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