International Karate - Lawsuit

Lawsuit

After the release of World Karate Championship in the US in late April 1986, Epyx was sued by competing video game publisher Data East for infringement of copyright, trademark, and trade dress. The dispute was about similarities to the 1984 arcade game Karate Champ and its home computer adaptations published in 1985. International Karate used the same coloured fighters and had the same points system. The initial trial at the District Court for the Northern District of California began on 28 October 1986. In his decision of 28 January 1987, the court dismissed the allegations of trademark and trade dress infringement but found Epyx guilty of infringing upon Data East USA's copyright on Karate Champ. Data East obtained a permanent injunction against Epyx, Inc., and an impoundment that restrained Epyx from further sale or distribution of World Karate Championship. Epyx was required to recall from both customers and distributors all copies of the infringing work.

The decision was appealed the United States Court of Appeals for the Ninth Circuit, who in November 1988 reversed the decision, stating that while the game was similar, it was not identical, and that one game company can not monopolise one entire sport.

As a result, Melbourne House did not sue System 3 nor Epyx, as the game The Way of the Exploding Fist is also very similar to both of these games, though the game itself also borrowed heavily from Data East's Karate Champ.