Royalty Payments on Music Machines
Drumscape is a drumming simulator, an interactive music-based game where players learn to play the drum in tune with popular music. When John Devecka (Devecka President) created Drumscape, he secured some U.S. and foreign patents that restrict the importation of music machines into the United States and some other markets. Following a number of recent e-mails from Highwaygames members regarding royalty payments on music machines, John Deveka agreed to participate in a special interview with Highwaygames.
Mr John Devecka said his company is requesting license fees from resellers and distributors who sell products Devecka believes are coved by its patent rights. "We are hoping they will work with the operators to identify these games and properly patent mark and license them. American Alpha based in New Jersey is a current licensee for the sale of the Percussion Master product, a high earning drumming based video game, and will be producing Drumscape in the fall. We are in cooperative discussions with several others distributors as well."
HIGHWAYGAMES I understand your company holds several patents covering interactive electronic drum machines in the USA, what do these patents cover? Are these only for arcade operated products or do they also include home operated products?
JOHN DEVECKA Our U.S. patents, which were filed in 1996, are Nos. 5,739,457, 6,018,121, 6,268,557, 6,369,313 and 6,835,887, and European Patent No. 0931308. We have a patent pending in Japan as well. We suggest distributors and resellers who deal in interactive music machines review our patents. We have patent claims for musical games for both home video games and coin operated products. Many people don't understand that when they import either new or used products, that those products are covered by U.S. patent rights.
HIGHWAYGAMES Do you have patents that restrict the importation of other types of interactive music machines into the USA? If yes, which games are covered?
JOHN DEVECKA As I just mentioned, imported machines are subject to U.S. patent rights. Each music game has to be evaluated individually against the patents. If you operate or sell these games we recommend that you contact us.
HIGHWAYGAMES How do you decide on licensing arrangements with importers? Is there a difference between a home customer and a reseller when deciding whether to grant a license?
JOHN DEVECKA We are undecided if we will offer a license to every reseller and distributor for future sales, or select a few key ones of them to work with. We will individually consider each reseller and distributor for a future license.
HIGHWAYGAMES How much is your licensing fee?
JOHN DEVECKA Our license fee offered to distributors, resellers and operators will be a reasonable one-time payment per machine. We are going to offer the same rate to everyone for all past units that are currently in the field. We do want people to understand that we are not trying to hurt anyone's business. But distributors, resellers and operators all need to understand that these new and used imports are subject to U.S. patents, that they hurt sales for new music products, and that patent rights cost hundreds of thousands of dollars of investment and years of effort. I think operators should contribute to the license fee along with distributors and resellers. That will be the best situation because operators realise earnings from these machines that are substantial and on-going. There are a large and growing number of these games in the US, and the earnings are very strong for music machines. It appears the dancing games have paved the way for these music games.
HIGHWAYGAMES What about drum or other music machines that are already operating in the USA, where do they fit in? And what happens if an operator / owner wishes to on-sell one of these such machines?
JOHN DEVECKA As I mentioned before, we are taking a friendly, reasonable approach. We are requesting the industry's cooperation. It is the best approach to take for everyone's sake. If you operate, have sold in the past or currently sell these music games, we really urge you to contact us and request a license that will provide protection from liability. It's that simple.
John Devecka can be contacted on 973-448-3636.
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