## Facts

- Atari, Inc. and Midway Manufacturing Co. held exclusive U.S. rights in the copyrighted audiovisual work *PAC-MAN*; Midway sold the arcade version and Atari marketed the home version.
- North American Philips developed, and Park Magnavox sold, a home video game for the Odyssey system titled *K. C. Munchkin*.
- *PAC-MAN* depicts a fixed maze with a central “gobbler” character, four pursuing “ghost monster” characters, numerous small dots, larger “power capsules,” and intermittent fruit symbols; gameplay centers on eating dots while avoiding pursuers, with a temporary role reversal after eating a power capsule.
- *K. C. Munchkin* is also a maze-chase game with a central gobbler-like character pursued by enemies while consuming dot-like objects (“munchies”), including special items affecting the chase; it added features such as moving “munchies” and changeable mazes.
- Atari and Midway sued for copyright infringement and Illinois unfair competition and sought a preliminary injunction to stop manufacture and sale of *K. C. Munchkin*.
- The district court denied preliminary relief, finding plaintiffs had not shown a likelihood of success; plaintiffs appealed.

## Issues

1. Whether plaintiffs showed a likelihood of success that *K. C. Munchkin* was substantially similar to protectable elements of the *PAC-MAN* audiovisual work, rather than merely sharing unprotectable game ideas.
2. Whether the district court abused its discretion in denying a preliminary injunction under the applicable equitable factors, including irreparable harm.
3. Whether plaintiffs were likely to succeed on an Illinois unfair competition theory based on the marketing and sale of *K. C. Munchkin* as a *PAC-MAN*-type game.

## Decision

- The Seventh Circuit reversed the order denying a preliminary injunction.
- The court held plaintiffs demonstrated a strong likelihood of success on copyright infringement because *K. C. Munchkin* likely copied substantial protectable audiovisual expression from *PAC-MAN*.
- The court concluded the equitable factors supported preliminary relief, including presumed irreparable harm on a strong infringement showing and a balance of hardships favoring plaintiffs.
- The court also found plaintiffs likely to succeed on unfair competition based in part on defendants’ promotion of the product as a *PAC-MAN*-type game.
- The case was remanded with instructions to enter a preliminary injunction barring further manufacture and sale of *K. C. Munchkin* during litigation.

## Legal Principles

- Video games may receive copyright protection, at least in part, as audiovisual works; copyright does not protect the game “idea” or rules but can protect the particular audiovisual expression.
- The idea–expression dichotomy requires separating general concepts (e.g., a maze-chase format) from protectable expressive details (e.g., character designs, distinctive visual presentation, and arrangement of elements).
- Substantial similarity is assessed under an ordinary-observer approach that focuses on overall similarities in protected expression, not on minute differences.
- Adding improvements or new features does not avoid infringement if substantial protected elements are appropriated.
- Copying may be inferred from access plus substantial similarity; widespread commercial success can support an access inference.
- Preliminary injunctions may issue where there is a strong likelihood of success, likely irreparable harm, a favorable balance of hardships, and a public interest in enforcing copyright and deterring misappropriation.

## Conclusion

The Seventh Circuit required preliminary injunctive relief because the accused game, though modified and arguably improved, likely appropriated substantial protectable audiovisual expression from *PAC-MAN*, and the equitable factors favored stopping sales pending a final merits determination.


Atari, Inc. v. N. Am. Philips Consumer Elecs. Corp., 672 F.2d 607 (7th Cir. 1982)