Update: Konami vs UD

I searched for the topic but could only find one that was last posted in on the 8th and since this was from the 10th, here it goes.

"Yu Gi Oh! owner Konami sued Upper Deck, its former distributor, for selling counterfeit trading cards. (Details here) After hearing both parties’ motions for summary judgment, the Court found that Konami had “presented evidence to establish every element of liability [for] counterfeit activity and violation of federal unfair competition law, pursuant to the Lanham Act, on the part of the [Upper Deck] Defendants.” (Order available here) The Court also found that Upper Deck was liable for common law trademark infringement and California unfair competition under Business & Professions Code § 17200. On the copyright infringement claim, the Court partially found that Upper Deck infringed the “Reverse Art” copyright, which refers to the text that appears on the back of the trading cards." More...

Not looking good for UD.

wow

The case is scheduled for trial on January 26, 2010. The case is Konami Digital Entertainment, Inc. v. Vintage Sports Cards, Inc. et al., CV08-06630 VBF (C.D. Cal. 2008)

Thing I don't understand is that in all the legal docs linked in that article, the defendant is listed as Vintage Sports Cards, inc.

A company based in Texas, which is helmed by Rick Dean.

Even if they are partially or mostly owned by UD, I would assume this would limit their liability in this matter.

Lot of the sky is falling for nothing:

Upper Deck and Konomi settled out of court

JANUARY 27, 2010 | ANTITRUST & TRADE REG.

Yu-Gi-Oh Case Is Yu-Gi-Over

By Ciaran McEvoy

Daily Journal Staff Writer

LOS ANGELES - The Upper Deck Co. ageed to pay an undisclosed sum to Japan-based Konami Digital Entertainment Inc. Tuesday to settle a counterfeiting lawsuit after acknowledging it produced hundreds of thousands of fake Yu-Gi-Oh! trading cards.

The afternoon deal was struck after each side had given opening statements in a trial to determine damages. U.S. District Judge Valerie Baker Fairbank excused the four-man, four-woman jury.

As part of the deal, Upper Deck agreed to a permanent injunction barring it from distributing the Yu-Gi-Oh! Trading Card Game and to make a series of undisclosed payments to Konami. Previously, Upper Deck had been the exclusive distributor of the popular game.

Upper Deck's first settlement payment is due Friday and its last is due March 31, according to discussions in court.

Fairbank set a July 26 hearing to discuss an official dismissal of the lawsuit.

"We are pleased that it's over," said a grinning Benjamin J. Fox, a partner at Morrison & Foerster in Los Angeles who represented Konami, outside Fairbank's courtroom. Konami had asked for at least $50 million and up to $150 million in damages.

"Upper Deck is extremely pleased with the cooperative resolution with Konami," said Richard K. Howell, a partner at Rutan & Tucker in Costa Mesa.

Before trial, Upper Deck conceded its printing and distribution of the approximately 611,000 phony cards violated trademark and copyright laws as well as unfair competition laws, according to court documents. The fake cards were printed in China in 2007, imported to the United States and distributed without Konami's authorization, court papers state. Konami Digital Entertainment Inc. v. The Upper Deck Co., CV 08-6630 (C.D. Cal.)

The counterfeiting stemmed from Upper Deck's agreement with its sub-distributors, which called for unsold Yu-Gi-Oh! products to be returned to Upper Deck. The card company repackaged the unsold cards with fake cards, which it marketed as "rare," in order to sell the product to consumers, according to court papers.

During pre-trial depositions, five current and former Upper Deck employees invoked their Fifth Amendment privilege against self-incrimination. One Upper Deck employee testified she witnessed the company's chairman Richard McWilliam shredding fake Yu-Gi-Oh! cards in his office after determining they did not look authentic enough, court papers state.