Nintendo purchased the entire patent portfolio of IA Labs during a Montgomery County, Maryland sheriff’s sale on January 7th after the company failed to pay the amount awarded to the Wii manufacturer by the court.
The legal battle began in 2010 when IA Labs claimed that technology in the Wii Fit board violated one of its patents. In March 2012 the case was thrown out of court and a 2013 appeal by IA also went in Nintendo's favor.
According to Nintendo, the court had ordered IA Labs to pay Nintendo for additional costs associated with the appeal defense. Since IA didn't pay, a sheriff's sale was held to sell IA Lab's assets.
Nintendo picked up the company's entire patent portfolio at the sale as partial repayment.
“Nintendo’s track record demonstrates that we vigorously defend patent lawsuits, like the IA Labs lawsuit, when we believe we have not infringed another party’s patent,” said Nintendo of America vice president and deputy general counsel Richard Medway.
“This includes holding those who sue Nintendo responsible for the costs and expenses incurred in patent litigation. Nintendo has a long history of developing innovative products while respecting the intellectual property rights of others.”