This is an interesting story. Here's what I know about it.
FASA wanted to do 'Mech toys and they worked a deal with a company (I
believe the company was Playmates). They sent over copies of 'Mech
miniatures and artwork and other things including the Mad Cat and a few
other designs they had created internally.
Playmates eventually decided not to pursue that deal and the toys didn't get
produced. Then, a year or two later, Playmates announces a line of giant
fighting robots that, surprisingly, looked just like the models that FASA
had sent them.
So FASA sued, claiming that they had a copyright infringement claim.
In court, Playmates used a defense based from the proliferation of mecha in
Japan to suggest that giant fighting robot designs were not copyrightable.
A lot of industry people were involved at this point - I believe that
someone from Palladium was even called to testify.
Anyway, Playmates got worried that they might lose on this claim. So they
dug around, and found out that some of the original BattleTech 'Mechs were
actually based on the Robotech creations. Then, they tracked down those
rights, and either sub-licensed them or bought the company that held them.
Next thing you know, Playmates is telling FASA: Look, if we're right, you
lose. And if you're right, we're going to countersue over these other 'mech
designs and we'll use this case as precedent - meaning we'll beat you in
Round 2. And since we haven't actualy done anything yet, you are going to
get statutory damages of $3,000, but we're going to sue for actual damages
and claim hundreds of millions of dollars in damages. So you can settle
now, pay our attorney's fees, and hand us a nice check, or you can lose
later and your whole company will end up in our hands.
Needless to say, FASA settled.
And that is the story I've heard second and third hand...
Ryan
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