On a statement in the Nintendo Japan website, the company has revealed they and 49 other gaming companies have succesfully won a lawsuit against DS flashcart manufacturers Seafort Japan Ltd., Mediaforce Ltd and Magical Company Limited. The three manufacturers have been found guilty of violation of the Unfair Competition Protection Act. The 50 plaintiffs have been awarded damages amounting to 95,625,000 yen, close to $ 1 million dollars, and of course, this will end further distribution of these flashcart devices.
The lawsuit was originally filed as far back as 2009, and back then had 55 plaintiffs. Lawsuits against retailers that sold the flashcarts were filed and won previously in other countries, including the US, UK, Australia, the Netherlands in 2010, and France in 2011. In contrast, the suit in Japan took four years to resolve. Although no official reason was given, it seems likely that the duration of the lawsuit was solely based on having so many companies involved in this particular suit.
The list of game companies that sued is a veritable who's who of Japanese gaming companies, including Index, Capcom, Square Enix, Namco Bandai, Konami, D3, Agatsuma, Arica, Yuke's, Shogakukan, GAE, Now Production, and Red Entertainment, among others.
As you may surmise, the amount of damages does not account for any estimated lost sales or profit from the flashcarts, and has clearly ended way past the period it was most materially relevant. Ultimately, the move appears to be a deterrent from making any future flashcarts for the 3DS. Nintendo has been more vigilant about protecting the 3DS from possible piracy via firmware updates.
Those who may dismiss this as too little, too late should note that NIntendo still actively sells the DSi line, even on their website.