Gibson picks fight over 'Guitar Hero'

The guitar company claims that the Activision Inc. game violates a patent they own for a virtual reality music system.
By Alex Pham, Los Angeles Times Staff Writer
March 13, 2008
Gibson Guitar Corp., which once harmoniously licensed its name to the
blockbuster "Guitar Hero" video games, is strumming a different tune.
Nashville-based Gibson claims that Activision Inc.'s "Guitar Hero"
violates a 10-year-old patent Gibson owns for a virtual reality music
system. Activision says that isn't the case and in a lawsuit filed
Tuesday in Los Angeles asked a federal judge to settle the matter.
"We believe their claims will not withstand any objective
scrutiny," George Rose, Santa Monica-based Activision's general
counsel, said in a statement.
In a Jan. 7 letter to Activision, Gibson attorney F. Leslie Bessenger
said the video game producer was "taking advantage of Gibson's patented
technology without properly compensating Gibson."
Gamers who play "Guitar Hero" use wireless controllers shaped like
guitars -- most of them modeled after famous Gibsons -- jamming along
with animated on-screen musicians.
Activision pays an undisclosed amount for Gibson's trademark under a
license agreement. It is unclear when that agreement expires.
"Gibson clearly believes the patent could be worth a lot more than the
royalties the company is already receiving from Activision," said Colin
Sebastian, an analyst with Lazard Capital Markets.
The Gibson patent, granted in November 1999, outlines a system that
simulates a concert experience with a head-mounted display with
speakers, an eight-channel mixer, a DVD player and a guitar.
Activision's suit says Gibson forfeited its rights by failing to raise the patent issue earlier.
"Gibson has been aware of the 'Guitar Hero' game for many years," the
suit says, and "encouraged Activision to manufacture and sell devices
it now alleges infringe the . . . patent."
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