Law Suit filed

Konami Corporation
24 May 2001


    Konami filed a suit against Amuse World based on infringement of a patent.


Konami Co., Ltd. (hereinafter 'Konami') filed a suit against two Korean
Companies, Amuse World Co., Ltd. and Game World Company (hereinafter,
collectively, 'Amuse World') based on infringement of a patent for its music
simulation game machine with the Seoul District Court in Korea on May 23,
2001.

The suit concerns about a prohibition of manufacture and sale, etc. of the
Amuse World's music simulation game machine, the gEZ2DJ' series and a claim
for compensation of 1.2 billion Won (approximately US$ 1 Million) whish is a
part of the sales amount of the 'EZ2DJ' series.


Konami's music simulation game machine was laid-open under the title of 'Music
Production Game Machine and Production Handling Instruction System for Music
Production' on April 26, 1999 and it was granted its registration of a patent
under Patent No. 294603 (hereinafter 'Subject Patent') from the Korean
Intellectual Property Office (hereinafter 'KIPO') on April 18, 2001.


In the meantime, on October, 1999, Konami had sent a warning letter to Amuse
World that as the Subject Patent was laid-open, Amuse World's activity to
manufacture and sell the 'EZ2DJ' series conflicted with the Subject Patent of
Konami and thus, it infringed upon the patent right of Konami.


However, Amuse World responded that 'whether the patent techniques are
identical to each other is decided by Intellectual Trial Board of KIPO or
Patent Court and not by Konami' and then, it continues manufacturing and
selling the subject game machines to date.  Accordingly, while believing that
Amuse World infringes upon the Subject Patent, Konami filed the subject suit
upon being granted the registration of the Subject Patent.


Konami's recent product which is an embodiment of the Subject Patent was
marketed under the name of 'beatstage' (beatmania in Japan) in Korea in
September 1998 and has been enjoying a good reputation among the Korean users.
The characteristics of the Subject Patent are that the bar moves on the rank
established on the screen and the players move the buttons when the bar moves
to a specific location.  The players get the points depending upon the
difference of the timing.  Further, the music is changed as a result of player
fs moving the buttons.


Beatmania is a big hit so that the total number of sold products comes to
about 5,000 in Japan and in Korea.  As a result, Konami established new field
of an arcade game, so called emusic simulationh.


Konami will take an appropriate legal action regarding any infringing activity
on our intellectual property in the future and at the same time, Konami hopes
that a judicial decision respecting intellectual properties is rendered.