Because Universal misrepresented their degree of ownership of King Kong (claiming they had exclusive trademark rights when they knew that they did not) and tried to have it both ways in court regarding the "public domain" claims, the courts ruled that Universal acted in bad faith (see "Universal City Studios, Inc. v. Nintendo Co., Ltd."). They were ordered to pay fines and all of Nintendo's legal costs from the lawsuit. That, along with the fact that the courts ruled that there was simply no likelihood of people confusing Donkey Kong with King Kong, caused Universal to lose the case and the subsequent appeal.