Nintendo of America, Inc. v. Lewis Galoob Toys, Inc.

Nintendo of America, Inc. appeals the execution of a $15 million bond in favor of Lewis Galoob Toys, Inc. Nintendo posted the bond as security for a preliminary injunction against Galoob in a copyright infringement action Nintendo later lost. The district court awarded Galoob the entire amount of the bond after finding the injunction caused Ga-loob at least $15 million in damages.

Nintendo argues the district court erred in three ways: First, by not weighing equitable considerations before deciding to execute the bond; second, by improperly finding the injunction harmed Galoob; and third, by improperly calculating the amount of Galoob’s damages.

We have jurisdiction under 28 U.S.C. § 1291 , and we affirm.

FACTS

The Nintendo Entertainment System (“NES”) was the most popular home video game system in the United States from the late 1980s until the early 1990s. Its manufacturer, Nintendo of America, Inc., began selling the NES in 1986. By 1991 Nintendo had sold over thirty million units in the United States.

Several years after Nintendo introduced the NES, Lewis Galoob Toys, Inc. announced its intention to begin selling the Game Genie, an electronic device allowing NES owners to…