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Judge bars selling of pirated video-game products

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In response to a lawsuit filed by Nintendo of America, a federal judge yesterday temporarily barred sales of counterfeit video-game hardware and software at kiosks in Seattle-area malls.

U.S. District Judge John C. Coughenour also ordered seizure of the materials. He agreed Redmond-based Nintendo would suffer immediate and irreparable harm if the defendants continued importing and selling the pirated products.

He scheduled a hearing on a preliminary injunction Nov. 4.

It's Nintendo's first major effort to stop sale of counterfeit products in the United States, said Jodi Daugherty, director of anti-piracy efforts for Nintendo of America and its parent, Nintendo Co. Ltd., based in Kyoto, Japan.

The counterfeit products are made in China, she said.

Coughenour's order and the lawsuit target two local operations — What's On of Lynnwood and SER LLC of Kirkland — and their officials. Officials of What's On declined comment. Directory assistance did not have a listing for SER.

Nintendo is hoping word of Coughenour's order will prompt mall managers around the country to close kiosks selling the illegal products.

Kistler Aerospace

Reorganization plan submitted to court

Kistler Aerospace of Kirkland, which filed for Chapter 11 bankruptcy protection after spending more than $500 million to develop a reusable space-launch vehicle, has proposed a restructuring that would erase most of its $600 million in debt and leave big aerospace subcontractors with a slice of ownership.
 
Under a reorganization plan submitted yesterday to U.S. Bankruptcy Court in Seattle, contractors including Honeywell, Lockheed Martin, Aerojet and Northrop Grumman, collectively owed $172 million, would receive Kistler preferred stock amounting to a 19 percent stake.

Kistler's principal financial backer, Bay Harbour Management, would receive 68 percent of Kistler's preferred stock to wipe out its $187 million in secured loans. A group of "general unsecured creditors," owed about $270 million, would receive another class of stock whose value is unclear.

If its refinancing plan is approved, privately funded Kistler aims to launch its first flight in late 2006 and compete for contracts to supply the International Space Station.

Xcyte Therapies

Cash reserves almost doubled

Xcyte Therapies said yesterday it has sold 2.6 million shares of convertible preferred stock at $10 a share, raising $26 million for its drug-development programs, or up to a total of $29.9 million if the underwriters exercise options to buy more shares.

For the Seattle biotech company, the financing nearly doubles its cash reserves, which stood at $33.6 million at the end of June. The company plans to use some of the money to run a pivotal clinical trial next year in chronic lymphocytic leukemia.

Investors will receive a 6 percent annual dividend, with the first payment on Feb. 1. Each share of preferred stock can be converted into 4.2553 shares of common stock. After news of the financing, the company's common stock rose 27 cents, or 13.5 percent, to $2.27.

Compiled from Seattle Times business staff and The Associated Press