http://www.1up.com/do/feature?pager.offset=0&cId=3146206
This is a good read about the history of Court battles in the Video Game industry.
"Unlike Higenbotham, Baer had been granted a patent for his game console and its games. So when Atari's Pong (designed by Bushnell) single-handedly gave birth to the home and arcade videogame industries, it also gave birth to the first videogame lawsuit. Baer called shenanigans, producing proof that Bushnell had seen Magnavox's Odyssey at a trade show; with Magnavox's victory, the courts clearly decided that Bushnell had been inspired by Baer's concept -- a little too inspired. "