Nintendo's lawyers systematically
dismantled Atari Games in a landmark 1989 legal battle that reshaped the gaming industry, killing off the Tengen brand until its surprise resurrection recently.
When Atari Games (operating as Tengen) attempted to circumvent Nintendo's control by reverse-engineering the NES security system, Nintendo's legal team discovered a fatal flaw in their rival's approach: Atari had fraudulently obtained Nintendo's proprietary code from the Copyright Office by falsely claiming they were defendants in a nonexistent lawsuit.
Though courts ultimately established that reverse engineering was legal under fair use principles, Atari's deception proved catastrophic. The judge invoked the centuries-old "unclean hands" doctrine, ruling that Atari could not claim fair use protection after approaching the court in bad faith.
"As a result of its lawyers' filthy hands, Atari was barred from manufacturing games for the NES. Nintendo, with its stronger legal team, subsequently 'bled Atari to death,'" writes tech industry attorney Julien Mailland. The court ordered the recall of Tengen's "Tetris" version, now a rare collector's item.
After a 30-year absence, Tengen Games returned in July 2024 with "Zed and Zee" for the NES, finally achieving what its predecessor was legally prohibited from doing.