State Farm fails to block Atari’s copyright lawsuit

Atari, the name behind the classic arcade game Crystal Castles, will get to pursue its copyright claim against State Farm after the insurer failed to block the game manufacturer’s lawsuit.

“In the video at issue here… the arcade cabinet appears in the center of the video for the majority of the length of the video,” reads part of the published court document.

“Although the characters in the scene do partially obscure the designs, and the marquee is replaced with a different title, the images on the cabinet are still largely observable and in focus, and the characters are shown interacting with the cabinet such that it appears to be a central part of the plot. 

The above is contrary to State Farm’s earlier assertions in defense of its use of the vintage game.

In seeking to get the case dismissed, State Farm’s camp said in a brief in May: “The ‘average lay observer’ certainly would not recognize Crystal Castles – a four-decade-old video game – given the fleeting appearance of the least-significant fragments of the wrap in the video… Under these circumstances, any use defendants made of content covered Atari’s registrations is de minimis and thus not actionable.” 

Meanwhile, State Farm was successful in challenging Atari’s claims for unjust enrichment, business disparagement, unfair competition, and false information and advertising, as the motion to dismiss these claims was granted.  

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