SEGA SETTLES SUIT WITH NIKE OVER TV AD
Sega of America (SOA) and its ad agency Leagas Delaney settled copy infringement suit filed by Nike in Feb. Suit contended ad for new Sega game NBA 2K2 that aired for first time in Jan. was nothing more than “virtual scene-by-scene reenactment” of Nike’s “Frozen Moment” 1996 TV ad depicting Chicago Bulls-L.A. Lakers NBA basketball game sequence featuring Michael Jordan (CED Feb 11 p2). Nike said SOA agreed to not run ad again, pay Nike’s legal fees and donate $100,000 in Nike’s name to Boys & Girls Clubs of Portland, Ore., and Memphis, Tenn., with each chapter receiving $50,000.
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Ad agency and SOA also provided statement of apology to Nike, saying: “Nike has long been regarded as a visionary company, with marketing initiatives that continue to inspire athletes of all ages, skill levels and backgrounds. Sega of America has immense respect for Nike, and continues to regard Nike as a pillar of creative strength. Consequently, we deeply apologize for creating an ad that so closely resembled Nike’s memorable ‘Frozen Moment’ ad, which understandably tarnished Nike’s feelings towards Sega. In no way did Sega of America, or our advertising agency Leagas Delaney, intend to show any disrespect to the Nike brand or athletes with its advertisement for the Sega Sports NBA 2K2 videogame. We sincerely hope that our companies may regain a positive professional relationship in the future.”
“Frozen Moment” ad featured fast-paced basketball action that seamlessly shifted to slow motion as riveted onlookers watched Jordan make his magically athletic moves toward final slam-dunk of basketball. As onlookers watched, their world was also depicted in slow motion, and they became oblivious to events and accidents happening around them. Nike’s suit claimed Sega ad copied sequence’s theme, tone, characters, mood, pace, music and setting “with only subtle differences.” Sega discontinued ad when it was sued.
Commenting on settlement, Nike U.S. Gen. Counsel James Carter said: “We filed the lawsuit to serve notice that we will defend our copyrights and are pleased with how the matter has been settled.” Nike said it selected Boys & Girls Clubs of Portland and Memphis to be recipients of settlement because those cities were home to Nike’s world hq and primary U.S. distribution center, respectively.
In addition to charging SOA and ad agency with copyright infringement, Nike had accused game maker of engaging in “unfair competition,” although Nike made no mention of that aspect of suit in announcing settlement. Suit had said: “By virtue of Nike’s widespread dissemination of ‘Frozen Moment,’ Sega and Leagas Delaney had a reasonable opportunity to view it and become familiar with its contents. When Nike’s ad was originally broadcast, [SOA’s] current Pres.-COO Peter Moore was senior vp of mktg. of Reebok, a major competitor of Nike’s and a company also active in marketing basketball footwear and apparel. Alternatively, the similarities between the 2 works are so striking as to preclude the possibility that Sega and Leagas Delaney independently created the Sega ad without reference to the Nike ad.”
Nike’s suit, which was posted at its Web site in Feb., said company “has been and will continue to be irreparably harmed by Sega’s wrongful infringement” and therefore was “entitled to preliminary and permanent injunction prohibiting Sega, Leagas Delaney Inc., and all persons acting in concert with them from further acts of copyright infringement and an order impounding all copies of the Sega ad.” At our deadline, it was unclear what settlement figure of $100,000 was based on.