Case Citation
Legal Case Name

Nintendo of America, Inc. v. Lewis Galoob Toys, Inc. Case Brief

Court of Appeals for the Ninth Circuit1994Docket #152459
1994 U.S. App. LEXIS 2610 1994 WL 45437 16 F.3d 1032 29 U.S.P.Q. 2d (BNA) 1857 94 Daily Journal DAR 2055 28 Fed. R. Serv. 3d 74 94 Cal. Daily Op. Serv. 1167

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Case Brief Summary & Legal Analysis

General Brief
4 min read

tl;dr: After Nintendo obtained a preliminary injunction against Galoob that was later found to be improper, the court affirmed an award of the full $15 million injunction bond to Galoob, establishing a presumption that wrongfully enjoined parties can recover provable damages.

Legal Significance: This case establishes the Ninth Circuit standard for executing an injunction bond under FRCP 65(c), creating a rebuttable presumption that a wrongfully enjoined party is entitled to recover damages up to the bond amount, with wrongfulness determined by the final outcome on the merits.

Nintendo of America, Inc. v. Lewis Galoob Toys, Inc. Law School Study Guide

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Case Facts & Court Holding

Key Facts & Case Background

Nintendo of America, Inc. (Nintendo), manufacturer of the Nintendo Entertainment System (NES), sued Lewis Galoob Toys, Inc. (Galoob) for copyright infringement over Galoob’s “Game Genie,” a device that altered features of NES games. Nintendo obtained a preliminary injunction preventing Galoob from selling the Game Genie. As required by Federal Rule of Civil Procedure (FRCP) 65(c), the district court ordered Nintendo to post a security bond, which was eventually increased to $15 million, to cover potential damages to Galoob if the injunction was found to be wrongful. After a trial on the merits, the district court ruled in favor of Galoob, finding the Game Genie did not infringe Nintendo’s copyrights, and vacated the injunction. The injunction had been in effect for approximately one year. Galoob then moved to execute the bond to recover its losses. Following hearings on lost sales and profits, the district court found Galoob had suffered damages exceeding $15 million due to the injunction. The court awarded Galoob the entire $15 million bond. Nintendo appealed the execution of the bond, arguing the district court erred in its decision to execute the bond and in its calculation of damages.

Court Holding & Legal Precedent

Issue: Under Federal Rule of Civil Procedure 65(c), is a party who was wrongfully enjoined by a preliminary injunction presumptively entitled to recover its provable damages up to the full amount of the security bond?

Yes. The court affirmed the award of the full $15 million bond. Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum

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Legal Issue

Under Federal Rule of Civil Procedure 65(c), is a party who was wrongfully enjoined by a preliminary injunction presumptively entitled to recover its provable damages up to the full amount of the security bond?

Conclusion

This case solidifies the standard in the Ninth Circuit for recovering on Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris

Legal Rule

A party has been "wrongfully enjoined" under Fed. R. Civ. P. 65(c) Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cill

Legal Analysis

The Ninth Circuit first defined "wrongfully enjoined" under FRCP 65(c), adopting the Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur. Excepteur sint occaecat cupidatat non proident, sunt in culpa qui officia deserunt mollit anim id est laborum. Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur. Excepteur sint occaecat cupidatat non proident, sunt in culpa qui officia deserunt mollit anim id est laborum. Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur. Excepteur sint occaecat cupidatat non proident, sunt in culpa qui officia deserunt mollit anim id est laborum. Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut ali

Flash-to-Full Case Opinions

Flash Summary

  • A party is “wrongfully enjoined” under Fed. R. Civ. P. 65(c)
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur. Excepteur sint occaecat cupidatat non proident, sunt in culpa qui offi

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