Court Ruling

Konami Corporation
8 June 2001



KONAMI won a lawsuit of Korean 'DDR' counterfeit at Seoul District Court

Seoul District Court gave a ruling favorable to KONAMI CORPORATION (CEO:
Kagemasa Kozuki, hereafter Konami) on the lawsuit against Andamiro Co., Ltd.,
its representative. Kim Yong-Hwan and Sundo Entertainment seeking injunction
against production and distribution of dance-simulation game 'PUMP IT UP'.
Konami had filed a complaint citing infringement of design copyright and
violation of unfair competition prevention law.

Konami released dance-simulation game 'Dance Dance Revolution' in October 1998
in Japan and May 1999 in Korea. 'Dance Dance Revolution' is widely known as
'DDR' both in Japan and Korea. The game turned out to be a tremendous hit with
cumulated sales of 4,000 in Japan and 3,500 in Korea while 1,000 unit sales is
considered as a big hit in arcade amusement machine industry.

'DDR' is the game which players select the music and step on the foot panel
following the instruction displayed on the screen. Players can feel like dancing
on the stage and compete for the higher score at the same time. Before the
release of 'DDR', the genre known as 'dance-simulation game' did not exist. The
design copyright of 'DDR' is groundbreaking in nature listing such
characteristics as speakers surrounded by neon tubes to enhance dancing motif
and the foot panel on which players input the rhythm with their feet.

Andamiro Co., Ltd. learned about 'DDR' at Japanese JAMMA Show (September 1998)
when it was first exhibited and got convinced it would make a big hit in Korea.
The company manufactured dance-simulation game 'PUMP IT UP' imitating 'DDR' and
started distribution through Sundo Entertainment in September 1999.

In the lawsuit, Konami claimed that structure of 'PUMP IT UP' was imitating
design of 'DDR' as infringement on 'DDR' design copyright. Also 'PUMP IT UP' got
a free ride of 'DDR' popularity and increased sales by mistake and confusion of
general public in Korea as violation of unfair competition prevention law.

Seoul District Court made the judgement supporting Konami's claim today. 

The judgement of Seoul District Court has significant meaning as setting a
precedent for protection of the intellectual property right in Korean amusement
machine makers having copied Japanese commercial use machines.

Expecting all the intellectual property rights will be protected from
infringement in Korea, Konami is going to come up with the world highest quality
digital entertainment.