SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported)
November 12, 1997
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Monarch Avalon, Inc.
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(Exact name of registrant as specified in its charter)
Delaware 0-8512 52-1073628
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(State or other (Commission (IRS Employer
jurisdiction of file number) Identification No.)
4517 Harford Road, Baltimore, Maryland 21214
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(Address of principal executive office) (Zip Code)
Registrant's telephone number, including area code, (410) 254-9200
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Item 5. Other Events
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On November 12, 1997, the Company and Activision, Inc., the Company's
licensee pursuant to a license agreement pertaining to certain CIVILIZATION
game products, filed a lawsuit in the United States District Court for the
Central District of California against MicroProse Software, Inc., MicroProse,
Inc., and Spectrum HoloByte, Inc. for trademark infringement, trademark
dilution, false designation of origin, false advertising, unfair competion,
and deceptive trade practices in connection with the publication by
MicroProse Software, Inc., MicroProse, Inc., and Spectrum HoloByte, Inc.
of certain CIVILIZATION computer game products. Thereafter, Activision
and the Company filed an amended complaint with additional claims for
declaratory relief and cancellation of MicroProse's related trademark
registration.
On April 7, 1998, MicroProse, Inc. and MicroProse Software, Inc., answered
the complaint. MicroProse, Inc., MicroProse Software, Inc. and Hartland
Trefoil, Ltd., a United Kingdom corporation affiliate of MicroProse, Inc.
that originally licensed certain rights to CIVILIZATION to the Company,
also presented a counterclaim for false advertising, unfair competion,
trademark infringement, unfair business practices, breach of contract,
copyright infringement and misappropriation in connection with Activision's
announced plans to develop and publish CIVILIZATION games under license
from the Company. MicroProse, MicroProse Software, and Hartland
Trefoil also seek cancellation of the Company's related trademark
registration.
Both the Company and opposing parties are seeking damages and injunctive
relief with respect to publication of future CIVILIZATION products.
The Company intends to defend itself and pursue its claims vigorously in
these actions. During April 1998, all parties have pursued discovery in
these actions. Management has determined through such discovery that in
the event that the Company should not prevail in these actions, the
Company may not be able to ship or sell certain of its products and may
be required to pay damages, both of which would have a material adverse
effect on the business, operating results, and financial condition of
the Company.
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SIGNATURES
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Pursuant to the requirements of the Securities Exchange Act of
1934, the Registrant has duly caused this report to be signed on its
behalf by the undersigned thereunto duly authorized.
MONARCH AVALON, INC.
Date: May 1, 1998 By: /s/ A. Eric Dott
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A. Eric Dott, Chairman of the Board
