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Atari, Inc. v. North American Philips Consumer Electronics Corp. | 672 F.2d 607 (1982)
Kids everywhere rejoiced when Atari announced that it was developing a home version of the wildly popular arcade game Pac-Man. Then a rival gaming system announced its own version. The battle between Pac-Man and K.C. Munchkin resulted in the early video-game copyright case Atari versus North American Philips Consumer Electronics.
The coin-operated version of Pac-Man, sold by Midway Manufacturing, was raking in millions in video arcades. Atari acquired a license from Midway to make a home version of Pac-Man for use on Atari gaming sets. It hadn’t yet placed the game on the market, but it had already booked orders in excess of 24 million dollars.
North American Philips Consumer Electronics decided to add a similar game to its home video-game lineup. Like Pac-Man, K.C. Munchkin involved a maze through which a gobbler raced, eating dots and avoiding ghost monsters. There were some slight differences in maze design and gobbler. The game had only twelve dots instead of about 200, and the music was completely different, but the resemblance to Pac-Man was unmistakable.
Atari and Midway sued North American for copyright infringement and unfair competition against Pac-Man. The district court concluded that the two games weren’t substantially similar and denied Atari’s motion for a preliminary injunction halting the sale of K.C. Munchkin. Atari appealed to the Seventh Circuit.
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