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Nintendo must pay percentage of 3DS sales to infringed patent holder

Tomita Technologies will receive 1.82 percent for every 3DS unit sold, judge rules

Nintendo must pay a set percentage of its Nintendo 3DS sales to a company that holds a patent the devices were found to infringe upon, a U.S. District Judge ruled in December.

Judge Jed Rakoff declared that Nintendo must pay 1.82 percent of the sale cost of every Nintendo 3DS and 3DS XL to Tomita Technologies International Ltd., which holds a patent for a glasses-less 3D display, according to Law360. With 3DS XL systems selling at around $200, for example, Tomita will receive about $3.60 in royalties from every purchase.

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Rakoff ruled in August that Nintendo must pay Seijiro Tomita, a former Sony engineer, $15 million in damages for allegedly using aspects of Tomita's patent in the handheld systems. The percentage assessed per console sold for the rest of the hardware's lifespan will be paid on top of this fee.

Nintendo was originally ordered to pay Tomita $30.2 million, but Rakoff said that amount was "intrinsically excessive and unsupported by the evidence presented at trial."

Nintendo 2DS sales will not be subject to the payments, as they do not use any 3D display technology. Nintendo reported 3DS hardware sales of 2.49 million for its July-to-September 2013 quarter.

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