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Nike vs Sega ... Fight!
In this months article I will discuss the lawsuit made by Nike on Sega.  Nike announced on this past Wednesday that Sega of America has agreed to settle a lawsuit for copyright infringement filed by Nike.  The suit charged that a Sega tv ad for its NBA 2K2 videogame was a virtual scene-by-scene reenactment of Nike's 1996 "Frozen Moment" ad.  The Nike ad featured a Bulls-Lakers NBA game with Michael Jordan in which fast-paced basketball action shifts to slow motion as Jordan slam-dunks.





The settlement announced by Nike calls for Sega to pay legal fees and donate $100,000 in Nike's name split between the Boys & Girls Club of Portland, which is home to Nike's world headquarters, and Memphis, Tenn., home to Nike's primary U.S. distribution center. Sega, which had pulled the ad shortly after the suit was filed, also agreed to permanently shelve the ad.  The suit filed by Nike originally requested that Sega pay unspecified damages or "a reasonable royalty on all sales of NBA 2K2 videogames."  Nike representative Scott Reames said: "I think we got our point across with the apology. We will defend our copyright and we will take legal action when we feel it's necessary."

Sega representative Gwen Marker said there was no basis to prove that Sega was guilty of the copyright infringement. "Sega volunteered to donate the money rather than engage in a long legal battle�.  So as you see Sega gave in to the Nike monopoly rather than lose money in a long court battle which they in the end win but at a high cost.  Which is smart, but I say for shame Nike for shame.
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