Complaint Filed by the Japan Professional Baseball Players Association (2)

Complaint Filed by the Japan Professional
Baseball Players Association (2)

September 3, 2002
KONAMI CORPORATION

The Japan Professional Baseball Players Association ("Players Association") filed a complaint against the Nippon Professional Baseball Organization ("Baseball Organization") and KONAMI CORPORATION ("Konami") on August 26, 2002. The complaint is seeking confirmation that neither the Baseball Organization nor Konami have rights to license/sublicense the use of individual names or likenesses of professional baseball players for the production or distribution of professionnal baseball game software.

On September 2, 2002, the Baseball Organization issued a press release stating that each professional baseball team has the rights to manage and use names and likenesses of its players, and that the Baseball Organization acts on behalf of each baseball team with respect to those rights. Konami has entered into license agreements with the Baseball Organization pursuant to which Konami obtained the right to use such properties, including the names of the 12 teams and their players, logotypes and uniforms of the teams, and likenesses, pictures and animated images of the players, for the production of baseball video games. The license agreement also allows Konami to use such properties in the media for marketing, sales, advertisement and promotion activities such as in packages of game software and posters. Based on these licenses, Konami has been producing and distributing professional baseball game software since 1993.

Based on the license agreement entered into with the Baseball Organization in 1999, Konami has sublicensed its rights to other game software makers since 2000. As a result, Konami believes that the number of baseball game titles released has increased (excluding PC titles). Konami's research indicates that there were 12 titles in 1999, 13 in 2000, 16 in 2001 and 13 as of the end of August 2002. Konami does not believe that the license is hindering the release of professional baseball game software, including those by sublicensees.

Konami sincerely hopes that the legal disputes regarding the use of players' likenesses and other properties will be settled between the Players Association and the Baseball Organization as soon as possible. The Company wishes to contribute to the further expansion of Japanese professional baseball and baseball culture through the distribution of professional baseball game software that will obtain popularity and support among/from game software users.

Related Information;: The complaint filed by Japan Professional Baseball Players Association; Release of Consumer-use Game Software Featuring Professional Baseball

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