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Nintendo and COLOPL Settle White Cat Project Patent Lawsuit

Nintendo and COLOPL settled the White Cat Project patent lawsuit in 2021. The commonly reported $30 million is an approximate conversion of COLOPL’s ¥3.3 billion accounting disclosure, not an amount Nintendo announced.
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Nintendo and COLOPL settled Nintendo’s patent-infringement lawsuit over the smartphone game White Cat Project on August 4, 2021. Nintendo’s announcement did not state a settlement amount; COLOPL later recorded ¥3.3 billion, including future licensing, in its fiscal 2021 annual report. The often-repeated figure of about $30 million is a conversion of that yen amount, not a dollar sum disclosed by Nintendo.

What the lawsuit was about

Nintendo’s official notice identified the case as a patent-infringement lawsuit concerning COLOPL’s smartphone game White Cat Project. It listed the Tokyo District Court case number as Heisei 29 (Wa) No. 43185 and named six Japanese patents: 3734820, 4262217, 4010533, 5595991, 3637031 and 6271692. The notice did not explain the patents’ technical subject matter or link particular patents to specific game features. Nintendo’s settlement announcement provides the case details.

What the parties agreed to

In its August 4, 2021 announcement, Nintendo said the parties had reached a settlement that included a settlement payment and future licensing of Nintendo patents. Nintendo said it would withdraw the lawsuit. The announcement did not provide the detailed terms: Nintendo stated, “Except for disclosures required by laws and regulations, we cannot disclose other settlement terms concerning this lawsuit because of confidentiality obligations.” Nintendo’s notice is the source for the announced agreement and confidentiality statement.

Was the settlement really $30 million?

Not as an amount disclosed by Nintendo. Nintendo’s announcement gave no figure in yen or dollars. COLOPL’s fiscal 2021 annual report later recorded a total settlement of ¥3,300 million, including future licensing, as an extraordinary loss. The approximate $30 million figure is a currency conversion of that reported yen total; it should not be described as the dollar amount announced by the parties. COLOPL’s annual reports provide the accounting disclosure.

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A separate figure sometimes discussed in coverage is a $40 million damages request reported before the settlement. That was an earlier claim, not the eventual settlement amount; contemporaneous secondary coverage distinguished the request from reports of the ¥3.3 billion settlement. Nintendo Life’s 2021 report gives that context.

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COLOPL’s response and the game’s status

When COLOPL addressed the filing in January 2018, it said it considered Nintendo’s claims unjustified and believed it had not infringed the patents. That was COLOPL’s position at the time, not a court finding. COLOPL’s January 10, 2018 notice records the company’s response.

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After the settlement, COLOPL told players it would continue working to let them enjoy White Cat Project. The settlement announcement therefore did not mean the game was shutting down. COLOPL’s August 4, 2021 player notice announced the settlement and continuation of service.

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