The US District Court for the Central District of California ruled that Guitar Hero doesn't infringe Gibson's patent on simulating a musical performance. The case was more or less turned to whether Guitar Hero controllers are actually musical instruments, and not surprisingly, the court said they're not and called them toys that represent other items. What's more, the court also found that Gibson's patent only applies to devices which output analog audio signals and not MIDI signals or other types of control signals, so it's looking like other rhythm game developers are in the clear for now. This also means Gibson's similar lawsuit against Harmonix for Rock Band is on hold while the company decide whether or not to appeal.
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