On January 24, 2018, U.S. District Judge Yvonne Gonzalez Rogers dismissed Atari’s copyright infringement case against Nestle following a confidential settlement between the parties. The suit arose from a Kit Kat commercial airing in the United Kingdom which Atari alleged infringed its rights in the classic 1970s video game “Breakout”.
“Breakout,” which was created for Atari by then employees Steve Wozniak and Steve Jobs, was a game similar to "Pong" where the object was for players to knock down rows of colored bricks.
In its complaint, Atari accused Nestle of using its "Breakout" game without authorization. Specifically, Atari alleged that Nestle's commercial depicted a game which had gameplay which was substantially similar to "Breakout" while replacing the colored bricks with brown Kit Kat bars.
According to Nestle, “The action was resolved through a mutually acceptable confidential settlement agreement.”