IA Labs loses patent portfolio to Nintendo after failing to pay lawsuit costs and fees

Nintendo obtained the entire patent portfolio of IA Labs during a sheriff’s sale in Montgomery County, Maryland on January 7.

IA Labs sued Nintendo for patent infringement in April 2010, but Nintendo successfully defended the lawsuit with a judgment in its favor in February 2012.

The trial court also awarded part of the costs and fees incurred defending the case to Nintendo.

IA Labs appealed the decision, but the court upheld the judgement in June 2013, with IA Labs ordered to pay Nintendo additional costs incurred in defending the appeal.

IA Labs did not pay the amount due, so a sheriff’s sale was conducted to sell IA Labs’ remaining assets, including its patent portfolio.

The original lawsuit stemmed from IA Labs CA, LLC claiming Nintendo's Wii Fit and Wii Fit Plus products infringed on one its patents. IA Labs claimed the products were a willful infringement by Nintendo following a meeting it had with the firm in December 2007.

Wii Fit was released in Japan on December 1, 2007, so the time disparity proved to be IA’s undoing in the end.

Nintendo obtained IA Labs’ entire patent portfolio at that sale as partial repayment for litigation costs.