Sony buys PlayStation copycat

Sony has purchased a PlayStation pirate, after a three-year legal dispute

In this story: Drawn out legal battle Competition buy out RELATED STORIES, SITES

By Kristie Lu Stout
CNN.com Writer

TOKYO, Japan (CNN) -- Sony has purchased the assets of PlayStation copycat Virtual Game Station (VGS), ending a harsh three-year legal dispute.

California-based software developer Connectix is the mastermind behind VGS, an "emulator" that tricks PCs into thinking they're PlayStation units.

Analysts say that after years of legal action, the deep-pocketed Sony has decided it is cheaper to buy the company's offensive asset than continue the legal face-off.

Drawn out legal battle

Sony launched its lawsuit on January 27, 1999 shortly after the launch of VGS, claiming that the product violated intellectual property rights and encouraged piracy.

Connectix challenged and beat Sony's demand for a temporary injunction blocking the sales of VGS, but was nevertheless blocked from shipping its Windows version of the software.

Sales of VGS were later blocked, but were resumed on an appeal. Sony then countered with a new tactic - - a patent infringement suit.

The final trial between the companies was scheduled for this month, but thrown out in favor of a deal brokered out of court.

Sony announced it is acquiring all assets related to Connectix's VGS product.

"Obviously through the course of our dealings with them, we came to the conclusion that this would be better for both parties involved," Sony spokesperson Benjamin Gurnsey told CNN.com.

Competition buy out

Industry watchers say Sony's conclusion was spurred by a desire to wipe out its rival.

"You buy them out so they can't compete," says Zachary Liggett, games analyst at West LB.

"It is one way of eliminating competition without going through a long drawn-out legal process."

All legal issues pertaining to VGS have been resolved as a result of the acquisition, according to a Sony company statement.

But what the company wishes to do with the Virtual Game Station remains to be seen.

"At this point of time, there is no definitive plan of what we're going to do with it," says Gurnsey.

Analysts hypothesize that the company will somehow incorporate VGS technology into new products.

"They may be interested in using that emulation software for their future development," says Liggett.

Connectix will continue to sell VGS until June 30, when all VGS assets become Sony property.

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