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Court Decision: The highest compensation amount in the history of intellectual property lawsuits in Japan

On March 19, 2002, the Tokyo District Court decided on a patent infringement case to order a total compensation of approximately 64 million dollars.
ARUZE, a major Pachislot machine* manufacturer, claimed a right to collect a total compensation of approximately 91 million dollars from two manufacturers in the same industry on the grounds of patent infringement. ARUZE sued both SAMMY, a major Pachislot machine manufacturer, and NET, a manufacturer in the same industry.

The Tokyo District Court decided that "SAMMY manufactured Pachislot machines that belong in the technological scope of ARUZE's patent, thus infringed upon the patent right", and ordered SAMMY to pay approximately 57 million dollars (for 39,600 units based on the estimated profit per unit of 1,440 dollars) to ARUZE for damage compensation. This amount of approximately 57 million dollars for compensation is the highest in the history of lawsuits on intellectual property rights in Japan.

Further, the Tokyo District Court found similar patent infringement also in the lawsuit wherein ARUZE claimed a right to recover damage of approximately 14 million dollars from NET, and ordered NET to pay approximately 7.7 million dollars (for 5,279 units) for damage compensation.

The infringement was found for the patent that relates to a device, which removes random number control when a certain condition is met, thus allows the player to use his/her skills to stop the device with a desired design.

Incidentally, the highest compensation amount in the history of intellectual property lawsuits before this decision was approximately 23 million dollars, which the same district court ordered Fujimoto Pharmaceutical Corp. to pay, in a lawsuit on the manufacturing method for "H2 Blocker," a medicine for the treatment of stomach ulcers.

* Slot-machines installed in Pachinko halls in Japan. Players earn coins, which can be traded for gifts.

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