A Queensland man will have to pay Nintendo $1.5 million in damages after illegally copying and uploading one of its new games to the internet ahead of its release, the gaming giant says.

James Burt, 24, of Sinnamon Park in Queensland will pay Nintendo $1.5 million after an out-of-court settlement was struck to compensate the company for the loss of sales revenue.

Nintendo said the loss was caused when Burt made for the Wii gaming console available for illegal download a week ahead of its official Australian release in November last year.

Under Australian law, copying and distributing games without the permission of the copyright holder is a breach of the Copyright Act.

Nintendo applied and was granted a search order by the Federal Court forcing Burt to disclose the whereabouts of all his computers, disks and electronic storage devices in November.