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Australia, 10 March, 2010 –

Nintendo confirms that the Australian Customs and Border Protection Service have seized game copiers (commonly referred to as R4 cards) and other counterfeit Nintendo products from an importer attempting to distribute the products in Australia. This is the first Australian customs seizure of game copiers of this type.

Video game piracy continues to be a serious problem in Australia. Nintendo attributes it to the availability of game copiers, the devices that circumvent the technical protection measures embedded in the Nintendo DS and Nintendo DSi systems that enable the play of illegal Nintendo software downloaded via the Internet. Game copiers infringe Nintendo’s trademarks and copyright and breach the “circumvention device” provisions of the

Nintendo has been working with the Australian enforcement authorities to curtail the spread of piracy for more than 10 years.

The seizure in Australia follows another recent significant Nintendo action. Earlier this month, Nintendo has taken successful action in the Federal Court in Australia against an importer and online seller of game copiers establishing that these actions are illegal and the consequences are real.

Nintendo is also taking action against distributors and sellers of game copiers and other infringing devices in many other countries around the world. In some countries, successful criminal proceedings have been brought against the manufacturers, suppliers and sellers of game copiers.

For further information regarding the recent Federal court civil action against the importer and online seller of game copiers please see our Media Release dated 22 February 2010 titled “Nintendo Successfully Takes Action Against R4 Cards” which can be found at: http://www.nintendo.com.au/index.php?action=news&nid=79

For more information about Nintendo’s global anti-piracy activities, please visit: http://ap.nintendo.com

Copyright Act. For further information contact:

Heather Murphy

Public Relations Manager

Nintendo Australia and New Zealand

murphyheat@nal.nintendo.com.au

+61 403 242 209

+61 3 9730 9900

Nintendo confirms it has successfully taken action against an Australian company in relation to game copying devices, commonly referred to as R4 cards. In September 2009 Nintendo filed proceedings in the Federal Court of Australia against RSJ. IT Solutions Pty Ltd which trades as “GadgetGear” – an online seller of gadgets, including gaming consoles and accessories- and the individual directors of the company, Patrick Li and James Li.

GadgetGear and its directors have now acknowledged that game copying devices infringe both Nintendo’s copyright and Nintendo’s trademarks and that they are illegal circumvention devices. As a result, GadgetGear and the directors have agreed to permanently refrain from importing, offering for sale and/or selling game copier devices. GadgetGear and the directors will also pay Nintendo a total of A$620,000.00 by way of damages. GadgetGear will also be delivering to Nintendo all its stock of game copiers for destruction.

Nintendo guards its intellectual property rights in order to protect the interests of its valued consumers, its own interests, and others in the games industry including independent content creation organisations, developers and publishing studios and all distributors of Nintendo products. Nintendo will pursue those who attempt to jeopardise the gaming industry by using all means available to it under the law. In particular, Nintendo is currently contemplating bringing further actions against other sellers of game copying devices in Australia.

Since 2008, Nintendo has pursued over 800 actions (including customs seizures, law-enforcement actions and civil proceedings) in 16 countries, confiscating well over a half million Nintendo DS game copiers. Piracy not only affects sales, it affects the price of video games and employment in the video game industry. Fewer sales of Nintendo’s hardware and software systems means fewer resources that Nintendo, its licensees, developers and publishers have to create and market new video game products which is ultimately to the detriment of video game enthusiasts. When there is a decrease in game development, there is also a decrease in the number of jobs in the industry.

The existence of piracy jeopardises the strength of the video game industry overall.

For more information about Nintendo’s global anti-piracy activities, please visit: http://ap.nintendo.com
For further information contact:
Heather Murphy
Public Relations Manager
Nintendo Australia and New Zealand
murphyheat@nal.nintendo.com.au
+61 403 242 209         
+61 3 9730 9900

Check it out directly at YouTube at: http://www.youtube.com/watch?v=JMHlL8sHmhg.

Nintendo confirms the settlement of a Federal Court action against an individual in Australia for illegally copying and uploading to the Internet the first game file of Nintendo’s highly-anticipated video game, New Super Mario Bros. Wii for the Wii™ console. The game file was first made available for illegal download worldwide on 6 November, 2009, a week prior to its official release in Australia.

This legal proceeding was commenced to protect the creative rights and innovation of game developers, and to combat the growing international problem of Internet piracy. Under Australian law, copying and distributing games without the permission of the copyright holder is a breach of the Copyright Act.

The legal proceeding resulted in a settlement in which the individual will pay to Nintendo the sum of $1.5 Million dollars by way of damages to compensate Nintendo for the loss of sales revenue caused by the individual’s actions.

Upon the game being uploaded to the Internet, Nintendo was able to employ the use of sophisticated technological forensics to identify the individual responsible for illegally copying the file and making it available for further distribution. On 23 November, 2009, Nintendo obtained a Federal Court search order in respect of the individual’s residential premises. This led to the seizure of property from those premises in order to gain further evidence against the individual.

Nintendo guards its intellectual property rights in order to protect the interests of its valued consumers, its own interests, as well as the interests of game development companies. Nintendo will pursue those who attempt to jeopardise our industry by using all means available to it under the law.

Nintendo has been working to combat piracy for approximately 20 years. Piracy is a significant threat to Nintendo’s business, as well as over 1,400 game development companies working to provide unique and innovative games for the Nintendo platform. Fewer sales of Nintendo’s hardware and software systems means fewer resources that Nintendo, its licensees, developers and publishers have to create and market new video game products which is ultimately to the detriment of video game enthusiasts. When there is a decrease in game development, there is also a decrease in the number of jobs in the industry. The existence of piracy jeopardises the strength of the video game industry overall.

For more information about Nintendo’s global anti-piracy activities, please visit: http://ap.nintendo.com

For further information contact:

Heather Murphy

Public Relations Manager

Nintendo Australia and New Zealand

murphyheat@nal.nintendo.com.au

+61 403 242 209

+61 3 9730 9900

To read the report click here.

Recently there were a number of major amendments to the Copyright Act 1968. Key changes relevant to the interactive entertainment industry relate to Technological Protection Measures (TPMs) and the enforcement provisions. The following FAQ will explain:

What is a Technical Protection Measure (TPM)?

• TPMs are used by copyright owners to protect their copyright material including, games from being copied or improperly accessed. Passwords, encryption, access codes and copyright controls are all considered a TPM and which copyright owners use in their games consoles and online products and services.

What changes in the Copyright Act impact the use of a TPM?

• TPMs whether access controls or copy controls are protected when there is a connection with copyright. Further, the new laws introduced a number of new enforcement provisions to protect copyright.

What can happen for circumventing TPMs?

• It is both a civil and criminal offence where a person circumvents a TPM for the purpose of copyright infringement. Additional remedies and penalties have been introduced, including stronger criminal penalties of five years imprisonment and/or fines of up to $60,500.

Are there any exceptions to the offences for circumventing TPMs?

• There are two very specific and limited exceptions, which apply to a TPM designed solely for geographic market segmentation and a TPM designed to restrict the use of goods or services.

Does this mean it is now legal to circumvent for region coding?

• The region coding exception is very limited – there is no blanket right to circumvent region coding TPMs. It will only apply when the region coding TPM exclusively is circumvented. The IEAA and its members take seriously the protection of copyright and welcome the new enforcement provision which provides a tougher stance on piracy.

I thought there was a recent case which meant that modchipping is legal?

• Modchipping per se has never been legal. Recent High Court rulings were based on a very technical interpretation of the TPMs used in older generation consoles. Since this time there has been important changes made to the Copyright Act which provide greater protection to copyright owners. It is also important to remember that the new laws don’t give blanket permission for circumventing (through modchipping or otherwise).

• Copying or “burning” games to a disk

• Sharing games on peer-to-peer networks

• Illegally downloading games from the Internet

Is Piracy a problem? Yes

• 41% of Australians surveyed would buy a pirated game at a discount of 75% or less*

• Almost 50% said they would accept a game if it were free*

• Buying illegal games means you don’t know who you’re dealing with or where your money will go

Piracy affects us all and has specific costs for:
Retailers:

• It is estimated that local Australian games retailers lose $21.8 million and suppliers $4.3 million each year as a result of piracy*

Consumers:

• Game piracy means less industry investment in new game development and console technology for consumers

• Piracy denies Australians hundreds of jobs each year

Australian games industry:

• Australia has a world-class computer and video game industry. Every pirated game damages the future of games development in Australia

• Piracy costs the industry $100 million* in lost sales each year or 19 per cent of sales

Government:
Reducing piracy by 1/3 in the toy, software and video games industries would:

• Increase real GDP by $41 million – a net gain to the economy of $466.3 million*

• Raise real government tax revenue of $34.4 million – a net gain of $487.2 million*

• Grow consumer confidence

• Create greater certainty for investors – a strong intellectual property regime is a key factor in attracting overseas investment

_{*Source Allen Consulting Group}

1. Trust your instincts: Compare the price against the recommended retail price. If the price is very low, be suspicious.

2. Buy from established outlets: Game prices are highly competitive. Some markets, Internet and newspapers advertise pirated games.

3. Check the trademark symbol or hologram: When buying second hand games, check the box, disc and manual for clearly printed trademark symbols or certificates of authenticity.

4. Coloured discs and DVDR: Games publishers do not produce games on DVDR or coloured discs. These are likely to pirated games.

5. Spelling and grammar: Check packaging for misspellings and grammatical inaccuracies – pirated games often contain such errors.

6. Box covers: Ensure the game comes in a full cover retail box. Hand written labels, faded discs, plastic disc covers and photocopied inserts are likely to be pirated games.

7. Multiple games on one disc: Several games on a single disc with no genuine box cover are likely to be pirated games. Copyright owners rarely produce compilation discs.

8. Who are you buying from: If the seller won’t give you their contact details, a receipt or any information should the product be faulty, the game is likely to be pirated. Keep all documentation.

9. Do your homework: Keep informed about game piracy by visiting the iGEA website

10. Report piracy: If you are aware of any potential game piracy, register it in confidence by calling the iGEA Anti Piracy Hotline: 1800 20 40 19 or anti-piracy@igea.com.au.

Each year these actions cost the industry $100 million in lost sales, as well as hundreds of full and part time Australian jobs. Australia has a world-class computer and video game industry. Every pirated game is damaging the future of games development in Australia.

For consumers, game piracy means many end up with faulty products. Pirated games may contain completely unrelated or inappropriate content. These games are inferior and you are not protected should the game malfunction.

Game piracy also affects Australia in lost tax and GDP, as well as undermines intellectual property laws that are the foundation of inward business attraction and investment.

Sadly, large scale piracy and organised crime often go hand in hand. Piracy provides the cash flow for other crimes including pornography, vehicle rebirthing and identity theft.