At the same time as Atari, American Video Entertainment, a subsidiary of Macronix the American IC chip manufacturer, also file a lawsuit against Nintendo over the exact same thing. American Video Entertainment also had problems with their games not working on newer NES consoles as Nintendo had updated their lockout chip system.

SAN FRANCISCO (AP) - In a new legal challenge to Japanense video game giant Nintendo, a U.S. company filed an antitrust suit on Jan. 7 seeking $105 million in damages. The U.S. District Court suit filed by American Video Entertainment Inc. alleges that Nintendo of America Inc. and its parent company, Nintendo of Japan, violated U.S. antitrust laws by using a secret lock- out system in its game consoles. American Video manufactured cartridges compatible with Nintendo game consoles, but the lock-out system in the Nintendo machines caused the cartridges to be rejected, the San Jose company's complaint said. American Video, a subsidiary of Macronix Inc., says Nintendo controls 80 percent of the home video entertainment market and alleges that it is using its monopoly power to ruin the San Jose company. American Video also alleges that Nintendo failed to inform buyers that only Nintendo cartridges would play in their machines. American Video maintains that Nintendo had represented to courts that cartridges made by other companies could be used in Nintendo consoles. Nintendo spokesman Tom Sarris said the company hadn't been formally served with the suit. But in a statement, Howard Lincoln, a senior vice president at Nintendo, said, 'Based on the news we've read, the charges are baseless, and Nintendo will vigorously defend itself.' Another antitrust suit against Nintendo, filed by game maker Atari, is pending in the same court. Newsday Online News Summary: Jan 16, 1991