Nintendo forced to pay a share of every 3DS sale to another company

Matt Brian
M. Brian|01.06.14

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Matt Brian
January 6, 2014 8:27 AM
In this article: 3ds, 3ds xl, camera, nintendo, patent, royalty, tomica
Nintendo forced to pay a share of every 3DS sale to another company

While Nintendo's Wii U console sales continue to frustrate, its handheld gaming business offers hope of a better future. But even as its 3DS and 3DS XL consoles continue to outsell their rivals, Nintendo will have to come to terms with sharing a percentage of each sale with another company. In December, the company was told it must pay 1.82 percent of the wholesale price of each 3DS sold after it was found guilty of infringing on patented camera technology owned by Tomita Technologies. It means that Nintendo could pay up to $3 for each unit, for as long as it continues to sell the console. Given it sold 2 million 3DS and 3DS XLs last quarter, putting the current lifetime total at 35 million, demand for the handhelds is still strong. Nintendo's already paid a $15 million damages award (down from $30.2 million in March 2013), but faces the prospect of sending Tomita smaller payments well into the future.

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