The case is about copyright protection for the video game "Scramble." Konami developed the game and gave an exclusive license to Stern to distribute it in North and South America. Omni made a similar game for cheaper prices and called it a knock-off. The court ruled that Konami's audiovisual work in the game is eligible for copyright protection, despite the player's participation. The sequences of images and sounds in the game are protected by copyright. Omni's use of the "SCRAMBLE" mark was in bad faith, and the court upheld the preliminary injunction against them.

Stern Electronics, Inc. v. Kaufman (1982)
United States Court of Appeals for the Second Circuit
669 F.2d 852

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