3DO Gives Up Royalty Rights to Matsushita

3DO Co. said it gave up the right to collect royalties on a new video-game technology licensed to Matsushita Electric Industrial Co. In exchange, the Japanese electronics giant gave back 3.2 million 3DO shares acquired in 1993, when it invested in the start-up company. The agreement ends a December 1995 contract between the companies in which 3DO licensed its M2 video-game hardware to Matsushita. However, the Japanese company never announced any plans to bring M2 products to market. Under the exchange, Redwood City-based 3DO relinquished its rights to develop and sell software for M2 hardware and any royalties it might have received from Matsushita’s use of M2. Meanwhile, Matsushita returned all of the 3DO shares it held, which equaled an 11% stake in the company.