Nintendo has acquired the patents of IA Labs following a legal victory in court over the company related to patents - but the company secured them outside a courtroom, sort of. Nintendo announced that it secured the patents officially on January 7, during a sheriff's sale in Montgomery County, Maryland. The company sued Nintendo in 2010, claiming that it violated several of its patents in Wii Fit and Wii Fit Plus. Nintendo successfully defended against the lawsuit and obtained judgment in its favor in February 2012. IA had alleged in its patent infringement lawsuit that Nintendo was violating patent US7121982 B2, which it obtained in 2006.
As part of that victory, IA Labs was to pay some of Nintendo's legal fees and court costs, but the company failed to pay the total amount due. This resulted in a sheriff's sale, where Nintendo bought up the company's remaining assets including its patent portfolio.
"Nintendo's track record demonstrates that we vigorously defend patent lawsuits, like the IA Labs lawsuit, when we believe we have not infringed another party's patent," commented Richard Medway, Nintendo of America's vice president and deputy general counsel. "This includes holding those who sue Nintendo responsible for the costs and expenses incurred in patent litigation. Nintendo has a long history of developing innovative products while respecting the intellectual property rights of others."