Games giants Nintendo and Electronic Arts have agreed to ditch their lawsuit against Yahoo! regarding pirated goods on its site.

The three companies today announced a ménage aimed at stopping pirate video games appearing on Yahoo! auctions and classifieds. They aim to use the portal's filtering technology to block counterfeit videogames from its network, including its auctions.

"Nintendo is pleased that consumers of Nintendo video game products will not have access to pirated goods on Yahoo! auctions, and we are encouraged by the strides Yahoo! has made in removing pirated goods from their sites," said Richard Flamm, VP and general counsel of Nintendo of America.

Jon Sobel, Yahoo!'s general counsel said the deal "sends a signal to pirates to stay off our network".

The suit, originally filed with Sega last March, accused Yahoo! of selling counterfeit games and devices to copy games through its site. It asked for an injunction against the sales, damages of $100,000 per copyright violation, and $2,500 for each sale of the hardware devices. At the time, an enraged Electronic Arts representative accused Yahoo! of creating a "virtual flea market for thieves to sell stolen property". ®