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  1. #1
    Fly Lord
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    Default LEGALWATCH: Games Workshop vs Chapterhouse Verdict

    We have a verdict!

    Some initial notes:
    This is a Jury Verdict, and has not yet become a Final Judgement

    Breaking down the counts along the different categories we have:

    Copyright Claims
    160 claims alleged against CHS
    -GW won on 1/3 of the claims, including items such as CHS' Powerfists
    -CHS won on 2/3 of the claims, including the use of the underlying shape and size of GW Shoulderpads.

    General Trademark Claims
    9 claims alleged against CHS
    -CHS won all 9 claims, including either no infringement, or fair use of the GW trademarks on CHS' website.

    Disputed Trademark Claims
    21 disputed trademark claims alleged against CHS
    CHS won 11 claims
    GW won 10 claims

    GW Trademarks ruled "Previously Used in Commerce" Claims
    61 claims alleged against CHS
    CHS won 35 claims
    GW won 27

    Notable Trends and Individual Products Under Dispute
    CHS lost on some individual products including:
    -Doomseer
    -Dark Elf Arch Tortress

    CHS won on some individual products including:
    -Jetbike
    -Super-heavy walker model
    -Lizard Ogre

    Damages Awarded:
    CHS ordered to pay GW damages of $25,000 USD

    Both sides may appeal the ruling.

    Thoughts and Implications:
    It's looking like however CHS as an entity comes out of this ruling, the implications for the 3rd party industry are profound.

    -The ruling of no infringement for the use of the underlying shape and size of GW shoulderpads is now on the legal record.
    -Possibly more important is not guilty verdicts on the use of GW trademarks and terms on the CHS website.
    -While certain CHS products themselves may disappear from the Earth in the aftermath of this case, it looks like the verdict may have provided a clear blueprint for the 3rd party accessory bits market. One that allows legal use of certain GW trademarks and terms in a way that goes way beyond what Nottingham themselves ever wished to allow.

    More details as we get it... Documents will be coming in time.

    UPDATE 6/17/2013

    Winston & Strawn LLP issue a press release on the case:

    June 17, 2013

    Winston & Strawn Defeats Hundreds of Trademark and Copyright Infringement Claims on Behalf of Pro Bono Client

    Cutting-Edge Decision Protects Industries from Litigation Blocking Add-On Products

    CHICAGO, IL – In a classic David-versus-Goliath battle, Winston & Strawn LLP represented Chapterhouse Studios LLC on a pro bono basis in a cutting-edge federal trademark and copyright dispute in the Northern District of Illinois (Games Workshop Limited v. Chapterhouse Studios LLC 1:10-cv-8103). The verdict of this jury trial, held in June 2013 before Judge Matthew Kennelly, confirms that copyright and trademark law should not be used to block add-on products. Winston & Strawn has litigated the case since 2010, and co-counsel law firm Marshall Gerstein joined the matter in 2012.

    “This was a classic case of trademark and copyright bullying by a much bigger Plaintiff,” said Jennifer Golinveaux, partner in Winston & Strawn’s San Francisco office. “I am proud of the investment made by the firm, and the many attorneys who devoted themselves to making sure the intellectual property laws were not misused to squash a much smaller player.”

    Games Workshop manufactures Warhammer 40,000, a tabletop battle game that works with armies of miniature figures and vehicles, while Chapterhouse sells customized add-on parts for the figures and vehicles used in the game. The United Kingdom-based Games Workshop, a company with $200 million per year in revenues, alleged more than 200 claims of copyright and trademark infringement against Chapterhouse, a small business run out of an individual’s garage in Texas. Games Workshop argued that it was seeking a complete shutdown of Chapterhouse’s entire business and although Games Workshop initially sought over $400,000 in damages, by the end of the two-week jury trial, the plaintiff dropped its damages demand to only $25,000.

    The jury deliberated for more than two days and found that Chapterhouse could continue to make and sell over a hundred products without fear of copyright infringement. The jury also confirmed that Chapterhouse could continue to use most of Games Workshop’s asserted trademarks when selling compatible parts, including all nine of Games Workshop’s registered trademarks. Together with the summary judgment wins, the jury’s verdict confirmed Chapterhouse can continue to make and sell 111 products that Games Workshop hoped to block using copyright laws, and can continue to use 104 words and phrases that Games Workshop said were trademarked.

    Imron Aly, lead trial attorney and partner in Winston & Strawn’s Chicago office added, “It was a pleasure to represent a small entrepreneur like Nicholas Villacci of Chapterhouse, who has a passion for his work and wanted to see his business survive.”

    Julianne Hartzell, partner at co-counsel law firm Marshall Gerstein added, “We are proud that we were able to help protect Chapterhouse against the overreaching claims made by Games Workshop in such a substantial trademark and copyright dispute.”
    6-27-2013 Motions for Final Judgement
    Both parties have submitted their suggested versions of final judgement after the Jury Verdict

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    Motions for Final Judgement

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    Games Workshop Motion

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    CHS Motion
    Last edited by Bigred; 06-28-2013 at 12:13 AM.
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  2. #2

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    Do we have a link to source material?

  3. #3

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    How can you legally use someones trademarks? This is gonna be interesting.
    Share price predictions any one?

  4. #4

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    this is good news for the most part, keeping competition alive will make GW strive to produce better quality models and produce them quickly. it may also mean fewer new models released with updated codices.

  5. #5

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    Not too shabby. Not too shabby. I suspect Chapterhouse will have little trouble paying those damages and manage to remain solvent. They are really irrelevant now. I got what I wanted out of this case. The floodgates are wide! This was a Pandora's box Games Workshop should never have opened.

  6. #6
    Chapter-Master
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    Default

    So out of those 251 challenged items above, CHS came out on top with 161. I guess CHS are only 35% lying thieving talentless scum then. Hope they enjoy the $25k.
    I'M RATHER DEFINATELY SURE FEMALE SPACE MARINES DEFINERTLEY DON'T EXIST.

  7. #7

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    Quote Originally Posted by dlust1 View Post
    this is good news for the most part, keeping competition alive will make GW strive to produce better quality models and produce them quickly. it may also mean fewer new models released with updated codices.
    Sigh, there is competition, it is called Warmachines, Flames of War, Infinity etc.

    Once again the hobby is table top war gaming, GW are just one producer. 40k is not the hobby.

    In the same way, playing call of duty isn't the hobby, but video gaming is.
    Last edited by Wolfshade; 06-14-2013 at 03:54 PM.
    Fan of Fuggles | Derailment of the Wolfpack of Horsemen | In girum imus nocte et consumimur igni

  8. #8

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    Quote Originally Posted by energongoodie View Post
    How can you legally use someones trademarks? This is gonna be interesting.
    Share price predictions any one?
    Without seeing the underlying verdict on the specific counts, the general rule is description - "this is a space marine" (when pointing to a space marine), "this fits on a space marine," "I don't like space marines," "I sell space marines" (when legally allowed to do so), things like that.
    Last edited by Nabterayl; 06-14-2013 at 03:54 PM.

  9. #9

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    Interessin'. Curious what the individual win/losses on those claims look like. It's hard to root for Chapterhouse, given their middling-to-cruddy products and blatant violation of GW trademarks in their sales, but at least this'll provide protection and guidelines for a wider industry that's got far, far more to offer.
    Last edited by Lexington; 06-14-2013 at 04:07 PM.

  10. #10

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    Quote Originally Posted by energongoodie View Post
    How can you legally use someones trademarks? This is gonna be interesting.
    Share price predictions any one?
    By saying "All Games Workshop products mentioned are Trademark Games Workshop" the same way after market product makers have been doing in every other industry since, ya know, ever.
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