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Davis LLP Web Logs or "Blogs" are intended to provide general comments on developments in the law. They are not intended to be a comprehensive review nor are they intended to provide legal advice. Readers should not act on information in the blogs without seeking specific advice on the particular matter. Please contact a lawyer listed on the blog pages for additional details, or to discuss how blog information is relevant to a specific situation.

Video Game Law Blog

» 2005

Video Software Dealers Association V. Schwarzenegger Case Summary

This is a December 21, 2005 decision of the U.S. District Court for the Northern District of California, San Jose division, granting a preliminary injunction against the enforcement of the California state government's violent videogame legislation (the “Act”). The injunction prevents the Act, which was to come into force on January 1, 2006, from being implemented until a final determination is made by the court regarding its constitutionality.

The Act requires “violent videogames” to be labelled and prohibits the rental or sale of these games to minors. ”Violent videogame” is defined at length in the Act, as a videogame in which a player has options to “virtually inflict” pain and suffering on other characters by a variety of options, including to kill, maim, dismember, or sexually assault an image of a human bring, in a manner that is deviant or morbid, patently offensive, or lacks serious artistic, political or scientific value for minors. The Act's definition attempts to catch those games considered gratuitously violent, or “heinous, cruel and depraved,” in that it permits players to engage in violence “beyond what is necessary to commit a killing.”

The Video Software Dealers Association (the “VSDA”) challenged the constitutionality of the Act on the grounds that it violates First Amendment rights to freedom of speech. They argued that videogames are a form of expression protected by the First Amendment, and that the definition of “violent videogame” in the Act was unconstitutionally vague, which would make enforcement impossible. For instance, are there any restrictions against violence against non-human characters? The Act prohibits those games where players can commit acts that inflict a “high degree of pain.” What does a “high degree of pain” mean? Who can judge whether an action in a game inflicts a “high degree of pain,” when it is virtually inflicted? They also argued that the Act wasn't narrowly tailored to ensure that any restrictions on freedom of speech were designed to have the least impact possible on that right.

U.S. District Judge Ronald Whyte surveyed earlier decisions from Illinois and Michigan which found similar legislation unconstitutional and granted injunctions preventing that legislation from being enforced. He found that in this case, the VSDA would be likely to succeed in a similar constitutional challenge of the Act, as they would be making the same arguments as in these successful cases that there is no certain causal link between violent videogames and violent behaviour and that the Act isn't narrowly tailored to ensure any restrictions on speech that occur to prevent the harms presented by violent videogames were only those necessary to achieve the objectives of the law.

Judge Whyte found that the California government would have a difficult time establishing that the harms posed by violent videogames are real, and can be alleviated in a direct and material way by the enforcement of the Act. He concluded that the VSDA would likely succeed at trial, or at least raise serious issues about the constitutionality of the Act, which necessitated the granting of a preliminary injunction to ensure the Act wasn't enforced until a conclusion had been reached. He found that the irreparable harm that would be caused by a restriction of First Amendment rights, and the expense and effort retailers and video game industry participants would have to undertake to begin labelling and monitoring the sale and rent of videogames while awaiting a decision, demonstrated that a preliminary injunction, prohibiting enforcement of the Act, was necessary.

The case is available here.

Video Software Dealers Association v. Schwarzenegger
December 21, 2005 US Dist. Ct., ND Cal.
401 F. Supp. 2d 1034
KEYWORDS: violent video game legislation - injunction - First Amendment - freedom of speech
Summary by: Dani Lemon

VIDEO GAMES ARE GOOD FOR YOU, PART TWO

In an earlier posting , we mentioned the ESA's compilation of studies which suggest that video games don't lead to real world violence. 

Now, here's an editorial from a video game dad who thinks that some video games are good for his kids http://www.shorl.com/dupopijyhypri
We'll keep our eyes open for Jack Thompson's inevitable reply.

WOO-HOO!!!

Maybe it was all that holiday eggnog that did it. Who knows? But the kind folks at Blawg Review declared our Video Game Law Blog the 'judges' choice for Speciality Blawgs"? in their Blawg Review Awards 2005. 

Coverage at  http://www.shorl.com/gyvatenyjika

CALIFORNIA GAME LAW TERMINATED

The US District Court for the Northern District of California has granted a preliminary injunction stopping the implementation of California's new video game law. The Court stated that video games are protected by the First Amendment's freedom of speech principles, and that the law would likely be ruled unconstitutional.

This is the third video game law in two months to receive such treatment by courts Michigan's video game law was ruled unconstitutional in November, and the same thing happened to an Illinois law a few weeks ago.

ESA Press Release at http://shorl.com/gipilagagovu

Coverage at http://shorl.com/humufrakijyri

WoW CRACKDOWN CONTINUES

We reported several months ago (see post ) about how Blizzard was scanning the hard drives of World of Warcraft players, trying to prevent hacking and cheating. Blizzard is obviously keeping on top of things, as it has announced that over the past three months is has permanently closed more than 18,000 WoW accounts for violating the Terms of Use.

Most of the closed accounts were using third-party programs to collect gold and items for sale in the real world.

Blizzard's report at http://shorl.com/fastynobrobradri

Coverage at http://shorl.com/hagrivakedygro

EA, NHLPA, NHL AND Take-TWO IN LICENSING DUST-UP

A detailed article on www.eahockey.com (which is not an official EA web site) describes a licensing tangle involving EA, the NHL, the NHL Players' Association, and Take-Two Interactive. Shortly before the end of last season's lockout, the NHLPA entered into an exclusive licence with EA, meaning that starting in 2006, EA would have exclusive rights to use NHL player names in its games. The article says that the agreement involved EA paying the NHLPA $44.2 million over six years.

However, the NHL was not pleased with this arrangement "? it prefers not to have exclusive licences, was not happy that the NHLPA would receive the majority of the income from the EA licence. The article states that the NHL said that it would not extend EA's existing licence with the NHL (i.e., which lets EA use team trade-marks, etc.) unless Take-Two Interactive (which publishes the NHL 2K series) also receives a licence from the NHLPA.

Apparently this threat brought all the parties back to the table, and the NHL has said that it is close to announcing licence deals with both EA and Take-Two.

EA and Take-Two have clashed over professional sports licences before "? last year EA signed an exclusive deal with the NFL, and Take-Two fought back with its own exclusive MLB agreement. If things pan out as the article suggests, however, it looks like the companies will be sharing the next NHL licence.

Coverage at http://shorl.com/hetuprelesoja

and at http://shorl.com/balopromustugry

POKEMON CANCER SCARE

A recent article in the journalNaturediscusses a cancer-causing gene that called the POK erythroid myeloid ontogenic gene.  The article refers to the gene as Pokemon (understandable when you look at the first portion of each word POK Erythroid Myeloid ONtogenic). Needless to say, Pokemon USA was not thrilled to see a rash of headlines in the vein of 'Pokemon causes cancer"?, and threatened legal action. The Memorial Sloan-Kettering Cancer Center, whence the article came, has complied with Pokemon USA's demands and no longer calls the gene as Pokemon. The gene is now referred to as Zbtb7.

We wonder what grounds Pokemon USA could rely on to prevent researchers referring to a gene as "Pokemon" -- arguably there is no copyright in a single word, and the cancer researchers were not using "Pokemon" as a trade-mark.  Even so, it's understandable why the institute thought it better to continue doing what it does (i.e., trying to find a cure for cancer) than get caught up in a dispute with a video game company.

Coverage at http://www.gamespot.com/news/6141487.html

GTA LAWSUIT KEEPS ROLLING

The lawsuit against Take-Two brought by the families of police personnel murdered by a GTA-playing teen will continue to trial. An Alabama judge has dismissed Take-Two's motion to dismiss the lawsuit. As a result, the way is most likely cleared to a jury trial, and all the uncertainty and possibility of enormous damages that brings with it.

Coverage at http://www.gamesindustry.biz/content_page.php?aid=13645

SUPERHERO SETTLEMENT

A year ago Marvel sued NCsoft Corp. and Cryptic Studios Inc. over "City of Heroes", claiming that the game's character customization function allowed players to create superheroes that closely resemble trade-marked Marvel comic characters (see our post ). More than half of Marvel's claims were dismissed a few months later, including its claim for trade-mark infringement (see our post ).

NCsoft now reports that the parties have reached a settlement which will let 'City of Heroes"? continue unchanged. As a result, the parties (and us) are spared a judicial decision dealing with player-created content.

However, the settlement does not mean that all is hunky-dory between Marvel and NCsoft "? Marvel and Microsoft are pairing up to make an XBOX 360 MMO based on the Marvel superhero universe, which will compete directly with 'City of Heroes"? (as will Sony's recently-announced MMO based on the DC Comics universe).

Coverage at http://shorl.com/dimefyprugesty

Jamdat Not Acquired So Ea-sily

As previously reported (see  here ), EA has entered into an agreement to acquire mobile gaming provider Jamdat for an estimated US $680 million. However, a Jamdat shareholder is suing to prevent the sale, alleging that Jamdat's directors did not attempt to find the highest price reasonably available for the company, and employed a process which would tend to result in Jamdat's acquisition by EA. Although financial analysts have categorized EA's offer as generous, the issue of whether others had an opportunity to make any offer is apparently live.

Coverage at http://www.shorl.com/jekijohesugi

THOMPSON HARASSER ARRESTED

Jack Thompson, the notorious anti-video game lawyer, claims that a 16-year old boy has been arrested for making threatening and harassing phone calls to Thompson. Thompson implies that the threats were part of a campaign by the video game industry to discredit him.

Coverage at http://shorl.com/bohunesilyka

Electronic Arts' Empire Goes Wireless

Just when you thought monolithic publishing emperor EA couldn't get any bigger, it goes and purchases mobile gaming company Jamdat for a reported $680 million, or USD $27 per share. Jamdat, created in 2000, will add a significant mobile gaming component to EA, which has thus far been unable to create a dominant position for itself in that area. It is expected that Jamdat will benefit from EA's host of gaming rights, EA will benefit from Jamdat's technical expertise and strong position in the mobile space, and cell phone users everywhere will benefit from having Madden with them during awkward visits from in-laws.

Coverage at http://shorl.com/duprobudyfrasty

The Resurrection Of Acclaim

When Acclaim Games went belly-up in September 2004, it left scads of vaunted intellectual property like 'The Adventures of Mary Kate& Ashley"? in legal limbo. Howard Marks, a former significant shareholder and executive with Activision, had the foresight to buy up what was perhaps Acclaim's greatest intellectual asset its name. Now, it is being reported that Marks is readying to launch a new company with the old name, specializing in casual, Asian-style MMOs. Whether Marks' Acclaim will have more success than the Acclaim of old remains to be seen, but we're glad to see that someone is making the attempt.

Coverage at http://www.shorl.com/hutababredrope

Vivendi Allows Fans To Create King's Quest Sequel

Vivendi Universal Games, the holder of the rights to the King's Quest games (which were created by Sierra in the 1980s), has allegedly granted a 'fan license"? to Phoenix Online Studios to create "The Silver Lining," which was previously entitled "King's Quest IX Every Cloak has a Silver Lining."  Details of the license are not available, but Vivendi has apparently responded to fan requests to grant the license after Vivendi ordered Phoenix to stop development on the title a few months ago. This appears to be a winning move for Vivendi the fan project could breathe new life into the stagnant King's Quest world, fans of the games get a new title to enjoy, the brand "King's Quest" doesn't get watered down (at least, not by the title of the game), and Vivendi has undoubtedly earned some new fans by this generous move. Who said the adventure genre is dead?

Coverage at http://www.kqix.com/home.php

OLLIE SUES DISNEY AND SEGA

Renowned skateboarder Alan 'Ollie"? Gelfand (the guy who invented the 'Ollie"? skateboard move in 1976) has sued Disney, Sega and others for more than $20million, claiming the companies have infringed his trade-mark rights in the word 'OLLIE"?.

If this lawsuit had been filed in Canada, it would have been a serious uphill battle. Gelfand hasn't yet registered 'OLLIE"? as a trade-mark in Canada (although he has applied to register it in Canada association with clothing and bed linens!). Accordingly, Gelfand would have to prove that he has established a significant reputation associated with the word 'OLLIE"? and that Sega and Disney are misrepresenting a connection between their products and Gelfand. He'll also struggle against the argument that 'OLLIE"? is generic and descriptive of the trick (given that it has been widely used by so many people without a licence). 

We understand that US law might provide more protection for personality rights, so we're not ready to speculate on the outcome just yet.
Coverage at  http://www.shorl.com/bobamipukity

The Adventures Of Mary Kate&ashley Could Be Yours!

The trustee for the bankrupt publisher Acclaim Entertainment, Allan B. Mendelsohn, has put the rights to more than 200 video game titles up for auction in Oceanside, New York. Famous titles such as 'Crazy Taxi,"? 'Re-Volt,"? and"? 'The Adventures of Mary Kate& Ashley"? are on the block, though Mendelsohn has admitted that he hasn't done complete due diligence on the properties, and thus some of the IP rights may be incomplete or nonexistent. For example, a game that included licensed properties may lack the license to continue using such properties, making the game itself a risky or worthless investment. It's strictly buyer beware, but then again, when has buying a game from Acclaim ever been any different?

Coverage at http://www.shorl.com/hidamejygryny

See the auction site at http://www.maltzauctions.com/acclaimip.htm

Sony Acquires Guerrilla Games

Sony Computer Entertainment Worldwide Studios has announced that it has acquired developer Guerrilla Games from its parent, Media Republic. Guerrilla Games, known for its creatively-named Playstation 2 title 'Killzone"?, is apparently hard at work developing further Killzone properties for the Playstation Portable and the upcoming Playstation 3.  Soon, there will be no Playstation zones in which killing is impossible.

Coverage at http://www.shorl.com/hedrymegynotre

Blagojevich Versus The Constitution

As reported in an earlier posting , U.S. District Court Judge Kennelly has ruled that the proposed Illinois law, which sought to ban the sale of violent or sexual video games to minors, is unconstitutional. Undeterred, Illinois Governor Rod Blagojevich has vowed that the 'battle is not over,"? and will presumably attempt to redraft the law so it complies with the first amendment right to free speech.

Coverage at http://www.shorl.com/fetegelomise

Microsoft Sued For Alleged 360 Defects

A Chicago man is suing Microsoft over an alleged design flaw that causes his new 360 to overheat and freeze. (In case that seems oxymoronic, it means the console gets too hot and causes games to stop cold). 

The suit alleges that Microsoft was too concerned with being the first next-gen console out of the gates, and as such sold a 'defectively designed"? product. This suit comes hot on the heels of numerous internet reports of similar 360 problems, especially regarding overheating (for example, see our previous post here ). Microsoft, however, maintains that it has only received isolated reports of malfunctioning consoles, representing a 'very, very small fraction"? of units sold.Coverage at http://www.shorl.com/fovastubromotra

BIG SURPRISE ILLINOIS LAW IS UNCONSTITUTIONAL

The US District Court for the Northern District of Illinois has just declared Illinois' Violent Video Game Law and Sexually Explicit Video Game Law unconstitutional. 

The Violent Video Game Law was unconstitutional because the State could not show that (a)violent content in video games is 'directed toinciting or producing imminent lawless action"? or (b) violent video games are 'likely to"? produce 'imminent"? violence.

The Sexually Explicit Video Game Law was unconstitutional because the legislation (in particular, the definition of 'sexually explicit"? content) was vague and not narrow enough.

Thanks to GamePolitics.com for the heads-up on this story.

Decision here http://www.shorl.com/bubresudraryme

 

DEVELOPER SUES EA OVER MADDEN 2006

A game developer has sued EA, claiming EA incorporated some of his ideas into Madden 2006. The developer met with EA in 2003 and disclosed an idea for a football game where the gamer develops a football player from high school to pro ball. The developer claims EA stole this idea and included it in Madden 2006 without his permission. EA denies this. 

Developers who pitch ideas to publishers often try to protect their ideas by asking publishers to sign confidentiality agreements. However, many publishers refuse to sign those agreements (and in fact require developers to sign agreements waiving all future claims regarding the ideas) because publishers hear hundreds of game ideas each year and want to avoid lawsuits like this one.
Coverage at  http://www.shorl.com/dofudevuviha

Entertainment Software Association Et Al V. Blagojevich Case Summary

This is a December 2, 2005 decision of the U.S. District Court, District of Illinois, Eastern Division, granting a permanent injunction against the implementation by the Illinois state government of the Violent Video Games Law (the 'VVGL"?) and the Sexually Explicit Video Games Law (the 'SEVGL"?), on the grounds that they violate the First Amendment. The decision prevents these laws, which were to come into effect on January 1, 2006, from ever being enforced.

The VVGL creates criminal penalties for selling, renting violent videogames to minors. The law also makes it a crime to allow a minor to purchase a violent game using a self-service checkout, and creates penalties for failing to label a violent game. A violent game is defined in the VVGL as one that contains 'depictions of or simulations of human-on-human violence in which the player kills or otherwise causes serious physical harm to another human."? 'Serious harm"? is defined in the law as including dismemberment, decapitation, amputation, maiming, disfigurement, mutilation of body parts, or rape.

The SEVGL creates similar criminal penalties regarding the sale, rent and labelling of games with sexually explicit games, which are defined as including content that the average person would find as depicting or representing 'an actual or simulated sexual act or sexual contact, an actual or simulated normal or perverted sexual act or a lewd distribution of the genitals or post-pubescent female breast."?

Both the VVGL and the SEVGL required retailers to label restricted videogames with an '18"? sticker and to post information about the videogame ratings system and the two new laws where they would be clearly visible to customers.

The Entertainment Software Association (the 'ESA"?) and the Video Software Dealers Association (the 'VDSA"?) challenged the constitutionality of these two new statutes on the grounds that they conflicted with First Amendment freedom of speech rights, while the government of Illinois argued that the laws were necessary to prevent violent, aggressive and anti-social behaviour in youth, curb societal factors inhibiting the development of youth and help them become law-abiding, productive adults, and finally, to assist parents in protecting their children from the effects of media violence.

On the issue of the VVGL, Judge Kennelly found that the research presented by the government of Illinois to prove that the laws were necessary to curb the effects of violent videogames on youth was unconvincing. He found it didn't establish a causal link between exposure to violent videogames and aggressive thinking and behaviour, nor did it demonstrate that, if a linkdidexist, it was significant or lasting. Nor could it be shown that videogame violence caused more aggression in youth than any other form of media violence, or any other societal factors, such as poverty. He concluded that he could not draw conclusions about the long-term effects of videogames on minors. 

Judge Kennelly ruled that the Illinois government would have to demonstrate that the harms the laws seek to protect against were real and that the laws would alleviate those harms in a material way before restricting First Amendment rights to freedom of speech. He ruled that the laws cannot prohibit speech on the argument that videogames, if left unregulated, might increase the chance of an unlawful act being committed at some indefinite future time.

Turning to the SEVGL, Judge Kennelly noted that while the First Amendment does permit restrictions on speech on the grounds of obscenity, the law is still subject to strict scrutiny to ensure any laws are justified by a social purpose and are constructed in the least restrictive means possible. There was no lower standard of scrutiny for the SEVGL just because it aimed to protect children. Further, he noted the SEVGL prohibits whole games based on what may amount to one scene with sexually explicit content, without regard to the value of the game as a whole. 

On the sticker requirement, Judge Kennelly noted that requiring all games with violent or sexually explicit content to be marked with an '18"? sticker tells parents and children nothing about game content and actually creates the appearance that all minors under 18 are prohibited from playing. He found that retailers, developers and distributors would begin to self-censor their products in order to avoid the sticker, which would creatively 'chill"? the videogame industry. He found there would be no way for the industry to remedy such a chill.

U.S. District Judge Matthew Kennelly agreed that the VVGL and the SEVGL were unconstitutional on the grounds that they violated First Amendment rights, were not justified by a compelling social interest and weren't narrowly tailored to minimize the effect of these restrictions, and granted a permanent injunction to ensure the laws would never come into effect in Illinois.

 The citation isEntertainment Software Association v. Blagojevich, 2005 U.S. Dist. LEXIS 31100.

Case summary by Dani Lemon.

 

PSP VANDALISM?

Someone has been vandalizing buildings in San Francisco, New York, L.A. and Chicago with similar images of characters playing with their PSPs. There's speculation that Sony is supporting the vandalism because the characters are similar and the quality of the artwork is good. 

However, Sony denies any connection to the graffiti (and rightly so"? supporting it would be illegal). In our view, aside from the illegality, this would be a strange campaign for Sony to support because most of the characters playing with their PSPs look hypnotized (dare we say 'stoned"??).
Coverage here  http://www.shorl.com/hobresufrysteva

SENATOR CLINTON PROPOSES FEDERAL GAME LEGISLATION

The heat has suddenly been turned up with respect to video game legislation in the United States Senators Hilary Clinton and Joe Lieberman have written a federal bill (the "Family Entertainment Protection Act") which they will submit to Congress in the near future.

FEPA prohibits any business from selling or renting an M, AO or Ratings Pending game to a person younger than 17. Violations will result in unspecified fines. The bill also authorizes the FTC to conduct annual random audits of retailers to determine how easy it is for individuals under 17 to buy M and AO games, and to report to Congress (we wonder whether there is a similar system in place for movies?). These audits will be part of an annual analysis of the ESRB ratings. There is also a mechanism for private citizens to file complaints with the FTC if they find video game contents to be 'misleading or deceptive"?.

The justifications for the bill have all been said before video games are getting more violent and sexually explicit, and parents feel increasingly powerless to protect their children from inappropriate influences. It will certainly be interesting to see how the bill is treated once it is introduced in Congress, and whether it will be subject to the same challenges that similar state-level laws have faced.

Senator Clinton's press release at http://shorl.com/bylusovabare

Coverage at http://shorl.com/dyfrunujaliho

NINTENDO PATENT OFFERS REVOLUTION INSIGHT?

The US Patents and Trademarks Office granted Nintendo a new patent earlier this month US Patent No. 6,955,606, with the catchy title 'Game information storage medium and game system using the same"?. Since we think everyone should have the opportunity to read patents, here is a description from the patent itself

'"?the invention relates to a game information storage medium and a game system using the game information storage medium. The game information storage medium stores in a first game machine, a game program for a second game machine having an architecture different from the first game machine architecture and an emulator program for converting the second-game-machine game program to be executed on the first game machine. By executing the second-game-machine game program on the first game machine, a game can be enjoyed on the first game machine which would not otherwise have been possible."?

In short, the patent covers a technology which allows a later-generation console to play games from older consoles using emulation software. Some commentators believe this technology may be integral to Nintendo's next-generation Revolution console, which Nintendo promises will be able to play a back catalogue of older Nintendo games.

Coverage at http://shorl.com/babrypustodrije

Patent details at http://shorl.com/gyjudrigrystugi

SONY ANNOUNCES PARENTAL CONTROLS

Sony has announced that its next-generation Playstation 3 will contain controls which allow parents to restrict their children's access to video games or movies with certain ratings, and to control access to on-line gaming.

Nintendo has announced similar plans for its next-generation Revolution, and Sony's Xbox 360, released last week, already has such controls built in.

Coverage at http://shorl.com/hykyhubronule

360: Too Hot To Use?

The internet is rife with rumours that xbox 360s are overheating, and xbox 360 games are freezing. Currently, the word is that the 360's brick-sized power supply units may be to blame the PSUs are large, and are thus being tucked away by gamers where they cannot obtain required ventilation to stay cool. Hopefully this doesn't indicate that the 360's power supplies will need to be recalled, as happened to the xbox power cord due to fire risk, but at any rate Microsoft is thus far denying any systemic problem with the 360.

Coverage at http://www.shorl.com/bygralivididri

CHEATER SUES FOR COPYRIGHT INFRINGEMENT

David Allison runs cheatcc.com, a site dedicated to posting cheat codes for video games. He recently sued a competitor, Crave Online Media, for copying his postings and replicating them on their website. He claims Crave Online Media violated his copyright in the postings.

The big question will be whether he actually owns copyright in the postings. He probably does own the copyright in his own original content, but he's going to have a tough time arguing that he has copyright in the actual cheat codes. First, the codes probably aren't his original works because they were created by the games' developers. Second, copyright doesn't protect underlying facts or ideas; it only protects how facts or ideas are expressed.
Coverage at  http://www.shorl.com/gagrodrigrafrutu

XFIRE/YAHOO! SETTLEMENT NEAR?

We reported earlier this year ( here and here ) about a patent lawsuit between Yahoo! and Xfire concerning instant messaging technology. Xfire had a summary judgment motion scheduled for December 9, in which Xfire was going to argue that its technology does not infringe Yahoo!'s patents and therefore that Yahoo! does not have a cause of action. However, Xfire has recently requested that that hearing be postponed. Apparently the parties have agreed on key settlement terms, and hope to negotiate a final settlement themselves.

Reaching a mutually-agreeable settlement is often the main impetus behind lawsuits; the fact remains that parties are often not willing to come to the table until a court action is underway.

Coverage at http://shorl.com/dameduprefryju

POSTAL GOES INTERNATIONAL

Back in 1997, game publisher Running With Scissors released a PC game called 'Postal"?, a violent shoot-em-up featuring a postal worker on a rampage. Unsurprisingly, Postal caused controversy and outrage when it was released, and was in fact banned in 13 countries (including New Zealand and Australia). Despite that, the game sold very well (over a million copies).

Now Running With Scissors has partnered with Softwrap ( www.softwrap.com ), who provides software that allows developers to distribute their products on-line without fear of piracy, to make its line of Postal games available for download. As a result, gamers in jurisdictions that banned Postal will be able to get their hands on the games by downloading them directly. Says Running With Scissors CEO Vince Desi '"?the world can now go Postal in peace and privacy, as God intended"?.

Coverage at http://shorl.com/fivilibrutyfu

The Adventures Of Jack Thompson, Video Game Lawyer

Earlier in November, Florida attorney Jack Thompson attempted to withdraw as counsel from an Alabama civil suit against members of the gaming industry. However, judge James Moore has rejected Thompson's motion to withdraw, and has instead removed him from the case, and revoked a temporary Alabama bar license Thompson was using to practice in the state. The judge removed Thompson as a result of a defence motion which claimed Thompson's numerous press releases and open letters on violence in video games represented a breach of legal ethics.

Thompson, not one to stay silent in the face of criticism, responded to Judge Moore's 18-page ruling in a document apparently filed with the Alabama court, which harshly questions the rationale of the defence in attempting to have Thompson removed, and Moore's power to remove him after he had already voluntarily withdrawn.

Coverage at

http://www.shorl.com/dilotipukadry

and

http://www.shorl.com/gonikijufroto

PARENTS SUE BLIZZARD

Parents of a 13 year-old boy have sued Blizzard Entertainment, claiming that World of Warcraft caused the boy to jump to his death from a 24 story building. The parents are also planning to turn this into a class-action lawsuit to sue "the whole game industry".
This is similar to the GTA lawsuit where families of three police officers killed in 2003 sued Take Two, Wal-Mart, Sony and various video game stores. The lawsuit claims the teenaged killer was motivated and trained to kill by Grand Theft Auto.

Blizzard coverage at http://www.shorl.com/fyfrehibigena



Germany Taking Steps To Curb Violence

No, not on the streets, but in their video games!  Proposed amendments to Germany's child protection laws could serve to ban any game which depicts lethal violence. Following trends in USA and Japan, the proposed changes would give government power to regulate violent content, above and beyond the industry-controlled rating system already in place. The language of the amendment isn't final, but if approved would go into effect March 2008.

Coverage at http://www.shorl.com/fobyrytratrede

LIABILITY IN THE MMO WORLD

We just published an article in theLawyers Weeklyregarding unexpected potential liability in the online gaming world. 

Here's the link  http://www.shorl.com/gorufebradrome

ZERO TOLERANCE FOR TM INFRINGEMENT?

Eidos Interactive announced recently that its soon-to-be-released shooter 'Roll Call"? is being re-named 'Zero Tolerance City Under Fire"?. This move did not sit well with Randel Reiss, the former president of Technopop (a now-defunct game developer). Technopop developed a game for the Sega Genesis in 1994 called 'Zero Tolerance"?, and Reiss claims that he retains trade-mark rights in that name.

In response to Reiss's cease and desist letter, Eidos apparently pointed out that the Technopop 'Zero Tolerance"? trade-mark registration in the USPTO had been cancelled. While this is not a mere 'technicality"? (as Reiss claims), it demonstrates an important point about trade-marks in various countries (including Canada and the United States), trade-mark users can develop enforceable, unregistered trade-mark rights. Official trade-mark databases obviously only show trade-mark registrations and applications, and do not reveal whether someone is using a mark without registering it. However, if a trade-mark database shows an application or a cancelled registration, that suggets that the mark in question may have been used, or that someone intends to use it "? in other words, that someone else may have unregistered trade-mark rights. On the other hand, there's only so much due diligence that can be done to identify unregistered trade-marks.  Eidos cannot really be faulted for thinking that there was no conflicting mark (if indeed that is how it approached the situation), and Reiss will have to show that he has not abandoned the "Zero Tolerance" trade-mark if he hopes to take on Eidos.

Reiss also claims to own the worldwide copyright in the 'Zero Tolerance"? title. This raises another interesting issue, namely whether there is copyright in a game title, but we'll leave that for another day.

Coverage at http://shorl.com/dotradotradudy

ILLINOIS INJUNCTION TOO?

In an earlier posting , we reported that Michigan's violent game legislation had been temporarily suspended after the US District Court granted an injunction preventing the legislation from taking effect.

Yesterday lawyers were in court seeking the same type of injunction against Illinois' violent game legislation.  The court is expected to release its decision today.

Coverage at  http://www.shorl.com/federypipipra

IT'S BETTER TO BURN OUT THAN FADE AWAY

This is a completely gratiutous posting.  It has nothing to do with video game law.  It also has nothing to do with our Star Wars vs. Star Trek category (even though the postings in that category at least arguably have something to do with video game law). 

But it can't be helped, so here it is  Def Leppard will appear at Spike TV's 2005 Video Game Awards!   No Foolin'. 

Actually, come to think about it, Def Leppard and Spike TV probably signed a contract regarding the appearance, so maybe this has something to do with video game law afterall.  Either way, we'll be watching (and maybe taking the odd Photograph or two...) 

Coverage at http://www.shorl.com/hogudetahuba

DEVELOPER LOSES COPYRIGHT CLAIM

The case involved a dispute between a video game developer and a group of publishers and distributors. The Plaintiffs are the publishers; the Defendant is the developer.

The Defendant claimed that in 1995, one of the Plaintiffs engaged him to develop a game called Sharpshooter. The plaintiffs later created another shooting game, this one called Police Trainer 2. The defendant argued that the new game infringed his copyright in Sharpshooter. The Plaintiffs sued to obtain a declaratory judgment that they were not violating the defendant's copyright.

The Plaintiff argued that there was no infringement because there were no similarities in source code between the games, no substantial graphical similarities existed, the games are dissimilar in their feel and content, and, any similarity is the result of the use of uncopyrightable ideas. The judge agreed.

The Defendant had argued that the judge should not compare Police Trainer 2 to Sharpshooter alone. Rather, the judge should compare Police Trainer 2 to what the defendant called a series of games, represented by Police Trainer and Sharpshooter together. The judge rejected this argument, finding that two games alone did not constitute a long enough running series.

Upon review of the allegedly similar portions of the game, consisting of a “Balloon's Challenge”, a “Memory Challenge” a “Whack the Criminal” segment, and a “Select Rank Exam” the judge found that there was no evidence of copying.

Team Play, Inc. v. Boyer
September 28, 2005 US Dist. Ct., ND Ill.
US Dist. LEXIS 21753
KEYWORDS: developer - publisher - copyright infringement
Summary by Ryan Garrett

SONY SETTLES PS2 LAWSUIT

Sony agreed to settle its 'disc read error"? lawsuit by paying affected gamers US$25 (which is CDN$31"? wooo-hoo!), giving them a free game from a specified list, and by repairing or replacing the affected system. The settlement is subject to approval by Canadian and American courts next spring. 
Coverage at http://www.shorl.com/gadrunyronavy

PRELIMINARY INJUNCTION AGAINST MICHIGAN LEGISLATION

Michigan's legislation (which bans the sale of video games to minors) has suffered a setback. The US District Court for the Eastern District of Michigan has granted a preliminary injunction which prevents Michigan from enforcing the law. 

The court ruled that Michigan failed to demonstrate the harm in violent video games. The court also ruled that the law would cause irreparably harm by stifling free speech. 

Similar challenges are underway against California and Illinois legislation. 
Coverage at  http://www.shorl.com/fevototodroha

DEVELOPER SEEKS TO WIND UP DIGITAL JESTERS

DogTag developer, KaosKontrol, has terminated its publishing agreement with Digital Jesters and is trying to wind-up Digital Jesters (i.e., shut it down). This follows yesterday's allegations by other developers who claimed that Digital Jesters engaged in 'highly suspicious"? behaviour. Other lawsuits are apparently pending against Digital Jesters, as we reported in a previous posting .
Coverage at http://www.shorl.com/dolehovukade

DEVELOPER SUES ATARI, CLAIMING UNPAID ROYALTIES

Roller Coaster Tycoon developer Chris Sawyer has sued Atari for US$5 million in respect of royalties he claims to be owed by Atari. Sawyer also claims Atari failed to give him access to Atari's accounts between 1999 and 2001.

The case will be tried in London (at Sawyer's request) rather than in New York (which is where Atari wanted to try the case. 
Coverage at  http://www.shorl.com/dystastiputydy

Entertainment Software Association V. Granholm

(This is an archived case summary.)

This November 9, 2005 decision of the U.S. District Court, Eastern District of Michigan, Southern Division, grants a preliminary injunction that prevents the Michigan state government from enforcing Michigan Public Act 108 (the 'Act"?). The Act prohibits the dissemination or exhibition of sexually explicit or ultra-violent videogames to minors without the consent of a parent or guardian.

The plaintiffs in this case, the Entertainment Software Association (the 'ESA"?), didn't challenge the government's right to restrict the viewing or distribution of sexually explicit games to minors, but took issue with the restrictions regarding 'ultra-violent"? videogames. 'Ultra-violent"? games are defined in the Act as those which 'continually and repetitively depict extreme and loathesome violence, through real or simulated graphic depictions of physical injuries or violence"? against characters that 'appear to be human beings"?. The Act specifically prohibits anyone from selling these games to minors, or even permitting minors to view games where acts of 'cruelty, dismemberment, decapitation, maiming, disfigurement, mutilation, murder, criminal sexual conduct or torture"? take place. The fines under the Act are stiff any person who permits a minor to view or play such a game could face fines from $5000-$40,000, and retail store managers who permit minors to view or play ultra-violent games in their establishment could spend up to 93 days in prison, and pay a $25,000 fine.

The Michigan state government argued that the restrictions and fines were necessary to safeguard the physical and psychological well-being of minors, and to prevent manifestations of violent, aggressive and anti-social behaviour in young people. Further, it argued the Act was necessary for public safety, to 'alleviate the real-life harms perpetuated by minors"? under the influence of these ultra-violent games.

The ESA argued that the Act wasn't constitutional. First, it violated First Amendment protections that guarantee freedom of speech, and violated the 'equal protection"? clause in the 14thAmendment, by singling out video games but not restricting other forms of media violence.

Judge George Caram Steeh agreed with the ESA. He found that it was already established that videogames and depictions of violence are also protected forms of free speech under the First Amendment He noted that the Act restricts content, and that content-based restrictions are presumed to be invalid unless the defendant can show they are necessary to serve a compelling state interest, and are narrowly tailored to avoid unnecessary limitations on constitutionally-protected freedoms. He found that the Michigan state government hadn't proven there was a compelling state interest to be served by the Act scientific research presented by the government hadn't supported the singling out of videogames from any other media as fostering aggression in viewers, and that there was no support for the proposition that videogames cause individuals to commit violent acts, or that they are more harmful to public safety than any other form of entertainment. The only harm Judge Steeh could find would be in the harsh penalties facing people in the video game industry, and that game creators, distributors and retailers would no doubt engage in self-censorship in order to avoid these penalties. 

Judge Steeh concluded that the risk of harm was in the enforcement of the Act and in the irreparable harm that would come from restricting First Amendment rights, even temporarily. He granted a preliminary injunction against the enforcement of those parts of the Act respecting ultra-violent games. This injunction will remain in place until the court has reached a final decision on the constitutionality of the Act.

Summary by Dani Lemon.

Entertainment Software Association V. Granholm Case Summary

This decision of the U.S. District Court, Eastern District of Michigan, Southern Division, grants a preliminary injunction that prevents the Michigan state government from enforcing Michigan Public Act 108 (the “Act”). The Act prohibits the dissemination or exhibition of sexually explicit or ultra-violent videogames to minors without the consent of a parent or guardian.

The plaintiffs in this case, the Entertainment Software Association (the”ESA”), didn't challenge the government's right to restrict the viewing or distribution of sexually explicit games to minors, but took issue with the restrictions regarding “ultra-violent” videogames. ”Ultra-violent” games are defined in the Act as those which “continually and repetitively depict extreme and loathsome violence, through real or simulated graphic depictions of physical injuries or violence” against characters that “appear to be human beings”. The Act specifically prohibits anyone from selling these games to minors, or even permitting minors to view games where acts of “cruelty, dismemberment, decapitation, maiming, disfigurement, mutilation, murder, criminal sexual conduct or torture” take place. The fines under the Act are stiff, as any person who permits a minor to view or play such a game could face fines from $5000-$40,000, and retail store managers who permit minors to view or play ultra-violent games in their establishment could spend up to 93 days in prison, and pay a $25,000 fine.

The State of Michigan argued that the restrictions and fines were necessary to safeguard the physical and psychological well-being of minors, and to prevent manifestations of violent, aggressive and anti-social behaviour in young people. Further, it argued the Act was necessary for public safety, to “alleviate the real-life harms perpetuated by minors” under the influence of these ultra-violent games.
The ESA argued that the Act wasn't constitutional. First, it violated First Amendment protections that guarantee freedom of speech, and violated the “equal protection” clause in the 14thAmendment, by singling out video games but not restricting other forms of media violence.

Judge George Caram Steeh agreed with the ESA. He found that it was already established that videogames and depictions of violence are also protected forms of free speech under the First Amendment. He noted that the Act restricts content, and that content-based restrictions are presumed to be invalid unless the defendant can show they are necessary to serve a compelling state interest, and are narrowly tailored to avoid unnecessary limitations on constitutionally-protected freedoms. He found that Michigan hadn't proven a compelling state interest to be served by the Act. Scientific research presented by the State hadn't supported the singling out of videogames from any other media as fostering aggression in viewers, and that there was no support for the proposition that videogames cause individuals to commit violent acts, or that they are more harmful to public safety than any other form of entertainment. The only harm Judge Steeh could find would be in the harsh penalties facing people in the video game industry, and that game creators, distributors and retailers would no doubt engage in self-censorship in order to avoid these penalties.

Judge Steeh concluded that the risk of harm was in the enforcement of the Act and in the irreparable harm that would come from restricting First Amendment rights, even temporarily. He granted a preliminary injunction against the enforcement of those parts of the Act respecting ultra-violent games, to remain in place until the court has reached a final decision on the constitutionality of the Act.

The case is available here.

Entertainment Software Association v. Granholm
November 9, 2005 US Dist. Ct., ED Mich.
US Dist. LEXIS 28318
KEYWORDS: freedom of speech - First Amendment - game violence - censorship - injunction
Case summary by Dani Lemon.

THE FROG'S OUT OF THE BAG DEVELOPERS SUE DIGITAL JESTERS

At least two three developers (Frogwares, Cyanide and Nadeo) and one publisher (Focus Home Interactive) have publicly claimed that UK publisher Digital Jesters have engaged in 'highly suspicious"? behaviour involving reporting, payment and corporate organization. The complainants claim that some developers have sued Digital Jesters, while others are considering their options. These claims were made in response to Digital Jesters' assertion that its cashflow problems were recently resolved by an infusion of cash. 
Coverage at http://www.shorl.com/byfupahostopra

Infinium In Trouble

Ifinium Labs, which trades on the over-the-counter market, is in the midst of one of its biggest challenges to date. Infinium's Chairman Timothy Roberts, who resigned from the posts of chief executive and acting chief financial officer in August, has been informed by the SEC that he is under investigation. Infinium believes the SEC notice is connected to charges filed by the SEC in July against three men for the alleged fraudulent promotion of several companies, including Infinium Labs. Infinium has further stated that certain aspects of six quarters' worth of its financial reports (regarding payroll and payroll taxes) contain errors, as they failed to disclose interest and penalties which could effectively double the amounts actually disclosed.

Infinium Labs has been working toward the release of the Phantom Game Service video game console.  It is unclear when the Phantom Game Service will launch.

Coverage at http://www.shorl.com/fadudagribroste

CONSOLE SKIN PATENT

The US patent office recently granted a US patent (#6,932,341) for a 'video game system auxiliary cover system"?. The system allows gamers to change the appearance of their consoles and controllers by snapping the new cover over existing hardware.  

Wow.
Patent is here  http://www.shorl.com/gididrisufrotre

NEW BRUNSWICK HOPS ON THE BANDWAGON

The province of New Brunswick is expected to introduce legislation which will require retailers to place ratings on all video games which are available for sale or rental in the province. The rating system would likely be similar or identical to the ESRB ratings widely used throughout the industry. It's not clear whether the province intends to go one step further and prevent the sale or rental of Mature and Adult Only games to kids.
Coverage at  http://www.shorl.com/hinevykutofe

WHAT HAPPENS IF YOU KILL AN MMO GAME?

EA Japan has decided to stop supporting Star Wars Galaxies in Japan. Gamers in Japan can apparently transfer their accounts to other servers; however, the shut-down still raises an interesting question what would happen if a game company were to completely kill an MMO game?

Game companies need to plan for this possibility before launching an MMO game. The concern is that gamers spend money on the games--expecting to be able to play them online. This expectation might be factored into the purchase price of the game. 

In addition, gamers spend money each month to gain access to the online portion of the game. They also spend countless hours building up virtual property in the game (which has a real world value and can be sold on online auction sites).

The loss of the MMO portion of the game could therefore result in the loss of gamers' time and money. And this could result in a damages claim against a gaming company.

That's why it's important for gaming companies to deal with this possibility in advance. End User Licence Agreements and Online Terms of Use should address MMO termination. It would also be a good idea to discuss this possibility in the user documentation for the game. 

Star Wars Coverage at  http://www.shorl.com/gygrestitejose

FLORIDA HOPS ON BOARD

Florida now has a draft bill to ban the sale and rental of violent video games to minors. The bill is very similar to the recently-passed California legislation.

Coverage at  http://www.shorl.com/hugrostakyliba

KING'S QUEST SEQUEL SHUT DOWN

KQIX, the unofficial ninth sequel to the King's Quest series was recently shut down after developers received a demand letter from Vivendi Universal Inc.

The legality of unofficial sequels is sometimes uncertain. It often depends on the extent to which intellectual property from the original game is included in the sequel.

For example, if the sequel uses trade-marks from the original game such as the name of the game (or sometimes even the names of characters or places in the game), the sequel might violate trade-mark rights in the original game.

Likewise, if the sequel uses any code, characters, or other materials from the original game, the sequel might violate copyright in the original game.
Shut down site is at  http://www.kqix.com

MORE STUDIES ON VIOLENCE

The ESA has released a compilation of studies which suggest that video games don't lead to real world violence. Not surprisingly, the ESA didn't mention any of the studies that came to the opposite conclusion, such as the ones discussed in an earlier posting .
Coverage at  http://www.shorl.com/dijygrastaduvy

CALI LAWMAKERS STRIKE BACK

Leland Yee, who wrote and sponsored California's new bill prohibiting the sale of violent video games to children, and Governor Arnold Schwarzenegger, who recently signed the bill into law, have both spoken out about the legal challenge brought jointly by the ESA and the VSDA. Yee's comments are more confrontational, including the statement that the video game industry is 'not concerned with the health and welfare of our children"? and is governed solely by its own financial interests. Schwarzenegger focused more on the bill's ability to help parents determine which games are appropriate for their children.

Similar laws have already been overturned in the cities of Indianapolis and St. Louis and in Washington state; constitutional challenges to other video game laws are ongoing in Illinois and Michigan.

Coverage at http://shorl.com/hyfrigomihege

CALI GAME LAW CHALLENGED

As expected, the Video Software Dealers Association and the Entertainment Software Association have started a lawsuit challenging California's new game legislation. The bill, which comes into force on January 1, 2006, restricts the sale of violent games to minors and requires manufacturers, distributors, importers, and retailers to put extra labels on such games.

The VSDA/ESA lawsuit claims that the California bill violates the First Amendment's freedom of speech protections by restricting access to games solely based on expressive content.

VSDA press release at http://shorl.com/direjykodropra

Coverage at http://shorl.com/gafrejedrajoju

HEY BARNEY, WANNA GO?

In an earlier posting , we mentioned studies which concluded that violent video games (a) incite violence in youths and (b) have absolutely no effect on youths. A new study from Michigan State University falls into category '(a)"?. It concluded that playing a violent FPS had 'large observed effects"? on triggering aggressive thoughts in the players.     

Personally, we're tired of these studies. We want something new. How about a study to determine whether watching Barney makes adults go slightly insane? But here's a heads-up to any would-be Barney researchers Barney's lawyers play a lot of FPS games and they don't like it when you dis the purple dino.

Michigan coverage at  http://www.shorl.com/dusujohysteba
Barney coverage at  http://www.shorl.com/hajodrobrebrufry

EA PHONE HOME

Director Steven Spielberg, who has directed such movies asET,JawsandSaving Private Ryan, has agreed to develop three video with for EA. This move demonstrates again the increasing ties between Hollywood and video games in today's world, where movies are based on games and games are based on movies.

Spielberg has previous video game involvement, including work on EA's Medal of Honour.

Coverage at http://shorl.com/jadryfregradroki

STAY, GOOGLE! GOOD BOY.

In an earlier post we reported that Microsoft was awarded a temporary injunction preventing a former Microsoft executive (named Kai-Fu Lee) from working for Google on certain products and services.  Mr. Lee was previously the 'face of Microsoft"? in China, and Microsoft objected to him playing the same role for Google.

Microsoft started the lawsuit in Washington State Court. The lawsuit was then moved to federal court.

Google filed its own lawsuit in California; however, a federal judge just ordered a tentative stay of that lawsuit. The court will rule today whether the stay should continue.
Coverage at  http://www.shorl.com/famaladypysy

The Dreaded Pirate Ponce De Leon

No, not the 16thcentury explorer. Dashiell Ponce de Leon of Richmond, Texas has been convicted of criminal copyright infringement by the US District Court of the District of Columbia, for selling 'backup"? (read pirated) copies of game and application software online. Ponce de Leon was sentenced for 3 years and 10 months in a federal prison, followed by 2 years of supervised release, and must pay $1.15 million in restitution fines. Due to this strong sentence, Ponce de Leon's case stands as a harsh deterrent against Caribbean and North American exploration. Piracy. I meant to write 'piracy"?.

Full coverage at http://shorl.com/fabegedratyku

XBOX 360 PIRACY FEARED

Reports from Germany are that 10 Xbox 360 development kits have been stolen from a German warehouse. The kits, which are used by game developers to create software for the next-generation platform, are thoughtto be in the hands of hackers who will be able to pirate Xbox 360 software and create unauthorized mods and cheats.

Police have recovered 3 of the 10 missing kits, but the remainder are still on the loose.

Coverage at http://shorl.com/dekaprotihiho

and at http://shorl.com/befajepradugo

MICROSOFT AND REALNETWORKS SETTLEMENT

Microsoft and RealNetworks have settled their antitrust dispute (to the tune of US $761 million moving from Microsoft to RealNetworks) and have created a new partnership to innovate and promote consumer choices in digital music and games. Part of the settlement involves an agreement that Microsoft will offer RealNetworks' digital games through MSN Games and Xbox Live Arcade for the Xbox 360.

The dispute between the two powerhouses includes a lawsuit by RealNetworks against Microsoft almost two years ago in the United States and RealNetwork's participation in the antitrust proceedings against Microsfot in the European Union and Korea.

Press releases at http://shorl.com/fojostilegrijo and http://shorl.com/bigofrogryryla

ANOTHER CLASS ACTION AGAINST EA

Sounds like somebody smells an opportunity last week we reported that EA settled an employee lawsuit in California for $15.6 million.  Gamepolitics.com is reporting that another employee class-action lawsuit has been filed against EA, this time in Florida. There is also one other outstanding employee lawsuit that (to our knowledge) has not been settled. 

Flordia complaint is here http://www.shorl.com/jafripehylaho

 

ARNOLD DOESN'T LIKE THE VIOLENCE

Governor Arnold Schwartzenegger has approved California's legislation banning the sale and rental of violent video games to anyone under the age of 18. The legislationalso requires a label to be added to these games.

The Entertainment Software Association and the Video Software Dealers Association are planning to challenge the legislation in court.

Coverage at  http://www.shorl.com/digrabrefyvity

GTA LAWSUIT MOVES TO FEDERAL COURTS

A recent lawsuit filed against Rockstar and Take Two in Illinois has been transferred to US District Court because of the Class Action Fairness Act, which requires that claims seeking more than $5 million be filed in federal court. The plaintiff, a mother who claims her children were exposed to sexually explicit content in GTA San Andreas and that the defendants misled the public by rating the game M instead of AO, is seeking to have the action certified as a class action. Those eligible to join the class are 'all persons in the United States who purchased at retail, GTA that contained an 'M' rating"?. Even though no class member is seeking damages in excess of $75,000, the total aggregate claim (given the potential number of class members) exceeds the $5 million threshold over which class actions must be brought in federal court.

Coverage at http://shorl.com/hadristevyvyto

Sony Versus One Guy - One Guy Wins

The High Court of Australia has allowed Mr. Eddy Stevens' appeal of an Australian Full Court decision, which ruled that mod chips sold by Mr. Stevens in Australia were illegal because they violated the copy protection devices built into PlayStations. The High Court overturned the Full Court decision, holding that because the actual PlayStation and PlayStation 2 chips circumvented by Stevens' mod chips cannot be considered 'technological protection measures,"? as defined by copyright legislation, Stevens' mod chips are not illegal.

An unmodified PlayStation or PlayStation 2 will not play a pirated or imported game, and will only play games containing a certain region code - which cannot be copied. A mod chip effectively works to trick the PlayStation into ignoring the need for this code, and thus permits the console to play pirated or imported games, but does not actually copy the game itself. The High Court held that in order for a mod chip to be illegal, it must contravene a 'technological protection measure,"? which is a device designed to prevent or inhibit copyingin breach of copyright. Because the PlayStation's security devices only prevent the playing of a pirated or imported disc - but do not prevent the actual copying of a legitimate game - their contravention by Mr. Stevens' mod chips does not qualify as a violation of copyright.

It has been speculated that mod chips would be considered legal by the High Court because they do not have purely illegitimate uses. Although they do permit the play of evil pirated games, they also allow wonderful foreign-region-encoded games (i.e., legitimately purchased games from a foreign country) to be played on a domestic machine. Hopefully, Sony will stop region-coding in the future, allowing hard core gamers to import great games from around the world.

Coverage at http://www.hcourt.gov.au/media/Stevens.pdf

Don't Mess With Texactivision

Looks like the giant woke up. As previously reported, Spark Unlimited launched a lawsuit against Activision, alleging that Activisionfailed to pay promised royalties for the first title developed under that deal (the console edition of Call of Duty Finest Hour), and took Spark's proposals for a sequel and gave them to its own developers.. Now, Activision has filed a counter-suit against Spark, allegingfraud, breach of contract, trade secret misappropriation, trademark infringement, false designation of origin, and false advertising. In a lengthy statement of claim, Activision refutes virtually everything alleged by Spark, and paints an interesting alternative perspective of Spark's claims. Activision also argues that Spark's refusal to return Activision development kits, mixed with the fact that Spark is generating new content for Atari, may result in Atari unwittingly violating Activision's intellectual property. Ultimately, Activision has requested that damages be calculated through a full trial, which indicates a potentially lengthy (and potentially difficult for Spark to finance) legal battle between the two companies.

Coverage at http://shorl.com/fetanihirete

Previous Coverage at http://www.davis.ca/community/blogs/video_games/archive/2005/08/30/283.aspx

Gizmondo Gets A Date

If all goes according to plan, on October 22ndAmerican gamers will finally be able to get their hands on Tiger Telematics' handheld gaming system, 'Gizmondo,"? which launched in the UK almost a year ago.   An interesting innovation, the Gizmondo will be sold for either$399 (US) for the regular system, or for $229 (US) for a model that automatically downloads and plays commercials.  Several details regarding Gizmondo's launch are still unclearwe're unsure whether it's launching in Canada, and nobody seems to know who will actually be selling the unit, although Tiger will reportedly be setting up special mall kiosks to move the handheld. Whether Gizmondo will be able to compete with Sony and Nintendo's new handheld units - the PSP, GBA Micro, and the DS - remains to be seen.

Coverage at http://shorl.com/bafredrihyhijy

EA SETTLES EMPLOYEE OVERTIME LAWSUIT

In July 2004, a group of Electronic Arts employees sued EA for overtime wages. Under California law, some employees in high-tech jobs are not entitled to overtime pay. The EA employees in this case argued that they were not exempted by the law, and therefore they were owed millions in overtime pay.

EA has now agreed to settle the lawsuit by paying the former employees $15.6 million to cover their overtime claims and legal fees. The settlement will become effective if it is approved by the court. 
Coverage here  http://www.shorl.com/dehisajulafe

NOTE TO DEFENCE COUNSEL

This isn't exactly a video game law story, but it's close enough. The reason we're reporting it is because it provides a great laundry list for counsel who are drafting counterstatements or statements of defence.

As you know, theRecording Industry Association of America (RIAA) has been busy filing lawsuits against thousands of individuals who have allegedly violated copyright by sharing MP3 files online. 

The RIAA has had some PR problems in the past (e.g., when it sued a 12 year old honours student and an 83 year-old grandmother).  The RIAA has just encountered another PR problem with its lawsuit against a 42 year-old, disabled, single mother. 

The interesting part of this story is that the mother filed a lawsuit in response. And she's not shy  she's suing for RICO violations, fraud, invasion of privacy, abuse of process, electronic trespass, violation of the Computer Fraud and Abuse Act, negligent misrepresentation, deceptive business practices and"?we like this one"?the tort of 'outrage"?. We'd never heard of that one before. 

This highlights an important point when you're faced with a breach of your intellectual property rights, you have to respond carefully. Your intellectual property is valuable and you must protect it (in fact, if you don't protect it you can lose some or all of your rights). And a lawsuit can be a very effective way to protect your IP. However, sometimes a lawsuit isn't the best choice. 

Sony is well aware of this (and has experienced several litigation-related PR issues in the past). Perhaps this is why Sony decided to sue retailers"?instead of consumers"?to prevent grey-market PSPs from entering other markets ahead of schedule. 

RIAA coverage at http://www.shorl.com/butytofrubrelu

 

FURTHER DVD HYPERBOLE

Earlier this week, Microsoft and Intel declared their support for the HD-DVD format for next-generation DVDs (see earlier post ). Dell and HP have now reiterated their support for the competing Blu-ray format, and have accused Microsoft and Intel of spreading inaccurate information about the new formats.

The ongoing dispute is particularly frustrating for retailers, who would prefer to move ahead with one next-generation format.

Coverage at http://shorl.com/dedyjydrodiby

DON'T HACK ME OR MY PSP

Sony has issued another patch for the PSP, this time to fix a bug that allows hackers to crack the PSP and run their own apps on it. Sony isn't currently setting its lawyers loose on PSP hackers, but is reminding its customers that cracking the PSP voids the warranty on it. 
Coverage at  http://www.shorl.com/buvagrahybepre

Tiger Going Public…

..but the Gizmondo is still not on North American retail shelves.

Tiger Telematics Inc. has announced its intention to become a public company by seeking a listing on the Nasdaq stock exchange. The company has stated that such listing would"engage a much larger investor base as it permits retail solicitation orders and research by analysts. Tiger's common stock will then be considered a marginable security for loans." It seems likely that Tiger is making the move to obtain cash to be used to push Gizmondos into retail outlets and ultimately the hot little hands of consumers. Given the huge uphill battle facing the Gizmondo, the wisdom of investing in Tiger remains an open question.

Coverage at http://shorl.com/gagragokygreba

TRUMPET OF DOOM FOR Id?

Earlier this year Adrian Carmack, one of the founders of id Software (but no relation to co-founder John Carmack), left the company, and it was presumed that he had retired voluntarily.  That seems not to be the case. Carmack has sued his former co-owners, claiming that they forced him out in order to gain his 41 percent of id's shares for a relatively small amount ($11 million). That doesn't seem small, you say? Well, it is small compared to what the shares will be worth if id is ever purchased by a third party. Apparently this manoeuvre was prompted by various recent offers by Activision (reportedly of $105 million to buy id outright, and $90 million to purchase the rights to Doom, Quake and Castle Wolfenstein). Carmack claims that his co-owners deliberately rejected these offers so that they could force him out and acquire his shares on the cheap, and then presumably reap a windfall in the event of a third-party purchase.

Carmack is also seekingto have the contract that requires him to sell his shares back to id for $11 million if he leaves declared void (i.e., so he can retain his 41 percent shareholding).

It is a good idea to have a strong shareholders agreement place when establishing a small company, for two important reasons to specify permitted exit strategies in case things fall apart, and to restrict the shareholders' abilities to sell their shares to outside interests. However, the Carmack lawsuit shows that even a shareholder's agreement won't always save the day.

Coverage at http://shorl.com/durabrebredrefre

and at http://shorl.com/hugehodifrimy

ONLINE HUNTING SHOT DOWN

There are apparently several online hunting websites in the US which allow users to remotely target and shoot various weapons (including rifles, bows, blades and harpoons) at caged animals. In effect, the sites turn hunting into an online computer game--albeit a brutal and potentially dangerous one. 

New York state has now passed a law making it illegal to hunt online or create websites which allow people to hunt online. Several other states are considering similar laws.
Coverage at  http://www.shorl.com/degipunikafra

THOUGHTS FOR GAME COMPANIES RE. VIOLENCE AND LEGISLATION

Here's an perspective on game legislation from Dennis McCauley, the editor of GamePolitics.com. In his view, "It is no longer sufficient for the industry to sit quietly back, ignoring the critics while the money rolls in... The opportunities are there to get the word out, to provide counterpoint to the critics."

Article at  http://www.shorl.com/hukysakadrera

NEW ALLIANCES IN NEXT-GENERATION DVD FIGHT

Tech giants Microsoft and Intel have picked sides in the battle over the standard format for next-generation DVDs. Both companies have sided with Toshiba's HD-DVD format in preference over the Blu-ray standard pushed by Sony and others. Microsoft and Intel believe that HD-DVDs are likely to become the dominant standard because they can be produced quicker and at less cost.

This move has not simplified matters "? other major players, including Dell and HP, are in the Blu-ray camp. Industry pressure to come up with one next-generation standard is increasing, as the shift to next-generation DVDs is seen as an opportunity to re-energize flagging DVD sales.

Coverage at http://shorl.com/bisipranijyli

W.O.W. VIRUS AND MMO LIABILITY

Earlier this month, Blizzard added a new dungeon (Zul'Gurub) to World of Warcraft. Dwelling in the dungeon is a monster called Hakkar, who has the ability to infect players with a virus called 'corrupted blood"?. 

It appears that Blizzard intended to limit the infection to characters near Hakkar's corpse; however, the infection has spread to other parts of the game (through a virtual pet!) and has affected hundreds of players. 

Blizzard is attempting to resolve the problem, but this raises an interesting issue for video game lawyers to what extent can online gaming companies be held liable for damage or destruction caused to online players or their virtual property? 

The Blizzard case is probably not a big deal (players are resurrected in Warcraft), but there have been other cases where the potential for liability seemed much higher, such as when there's cheating or theft involved. 

Earlier this year, Square Enix dealt with these issues by banning 800 people from playing Final Fantasy XI. Another good way for online gaming companies to protect themselves is to ensure their licence agreements and online terms of use agreements adequately deal with potential liability issues such as cheating, hacking, viruses and service interruptions.

Coverage at http://www.shorl.com/bidobresiprofry

ANOTHER HOT COFFEE SUIT

We reported a while ago about a grandmother in New York who sued Rockstar Games and Take Two Interactive Software Inc. over the hidden sexual content in GTA San Andreas. A similar class action lawsuit has now been launched in Illinois. The plaintiff claims that when she bought San Andreas for her teen-age children it was rated 'M"? by the ESRB. However, she claims that Rockstar and Take Two did not inform the ESRB about the hidden sexual content, and therefore deceived the ESRB into giving the game an 'M"? rating. Because Rockstar and Take Two failed to disclose the sexual content to consumers and provided misleading and deceptive information that San Andreas was an 'M"? game, she (and others) suffered economic loss by buying the game (when presumably she would not have purchased it had it been rated 'AO"?).

The complaint states that all persons in the United States who purchased a retail copy of GTA San Andreas that contained an 'M"? rating are eligible to join the class. This is interesting "? shouldn't the class be those who bought an 'M"? rated game but would not have bought that game if it had been rated 'AO"?? That is, presumably only certain buyers were 'misled"? into buying the game on the basis of its 'M"? rating. Surely the many adult purchasers who bought the game for themselves, and who would have done so regardless of the rating, were not misled.  That being said, consumer protection or trade practices legislation (at least in Canada) does not usually require proof of damage on behalf of the consumer.

And, as always, the question arises as to why it is acceptable to buy children a game in which the main character can shoot police officers, steal cars, commit drive-bys and home invasions, act as a pimp, etc., but the existence of locked, not overly graphic sexual content suddenly makes the game unacceptable. This is not to say that Rockstar didn't make a big mistake, and that the game doesn't deserve an 'AO"? rating, but it does say something interesting about current societal values.

Coverage at http://shorl.com/gijiketomabu

ANOTHER JAPANESE BAN OF GTA III

You may recall that Japanese prefecture Kanagawa labelled GTA III as 'harmful"?, such that it could not be sold or rented to minors (see previous post ). Another Japanese prefecture, Saitama, has now followed suit. The Saitama government is concerned that the game promotes violence among youths, and the governor has apparently stated that GTA III is 'far too violent and obviously harmful"?.  Now that the game is labelled a "harmful publication", retailers must stock it separately from other titles, and sales to minors under the age of 18 can result in fines.

GTA San Andreas has not been released in Japan, so these rulings apparently apply only to GTA III.

Coverage at http://shorl.com/gagrofryhadriho

GUY GAME INJUNCTION STANDS

In an earlier posting we reported that an anonymous teenager had won a temporary injunction against Topheavy for including topless footage of her in The Guy Game. She had been videotaped while competing publicly in a topless contest during spring break. The problem was that she was a minor at the time of the contest, so her lawyers are arguing that the waiver she signed was void (despite the fact that she provided ID at the time which showed she was an adult).

Topheavy appealed, arguing that the plaintiff lied about her age and then willingly participated in the contest knowing she would be asked to flash her breasts in public. However, the Court of Appeal recently upheld the injunction.

The Court of Appeal ruled that there was at least a possibility that the plaintiff could eventually win her lawsuit against Topheavy. The court also ruled that the U.S. First Amendment doesn't give Topheavy the right to use the plaintiff's likeness to promote a commercial product if the plaintiff didn't consent to it (and of course, the real issue in this case is whether the plaintiff's consent was legal).

Topheavy Studios v. Doe
September 14, 2005 3rd Court of Appeals, Texas
Tex. App. LEXIS 6462
KEYWORDS: injunction - consent - likeness - minor
Summary by Chris Bennett

FULL-PACKAGE LAWSUIT AGAINST MICROSOFT

There are reports that Glud and Marstrand, a Scandinavian packaging company, has sued Microsoft for breaching non-disclosure agreements and misappropriating confidential information.

G&M claims it developed technology for metal DVD/CD containers that are designed to open and lay flat like a book. G&M and Microsoft entered into discussions about video game packaging; after getting its NDA signed, G&M says that it provided confidential information concerning the packaging to Microsoft.

Microsoft eventually issued a request for proposal for a metal case for Halo 2, and then rejected G&M's proposal and went with different firm (Viva). G&M now claims that Microsoft passed on confidential information to Viva, that the Halo 2 case made by Viva for Microsoft uses G&M's proprietary technology, and that Viva has filed patent applications based on that technology.

Protecting confidential information while exploring business opportunities is always tricky, as it is difficult to generate business relationships without giving the other party a look at your technology. If your technology has not yet been patented (either because you haven't gotten that far, or because it may not be patentable), using techniques such as non-disclosure agreements is crucial. However, you have to be willing to act decisively, as G&M appears to have done, if you suspect that your NDA has been breached and that an unauthorized party is using your technology.  Time will tell whether there is merit to G&M's claims.

Coverage at http://shorl.com/bitranefraprimy

DAVY JONES'S LOCKER FOR PIRATE CAPTAIN

The Entertainment Software Association has announced that the owner of the Pandora's Cube chain has been sentenced to 5 months in prison and three years of supervised release (including 5 months of home arrest) for game piracy activities. The sentence also includes a fine of $247,237 and 80 hours of community service.

Several Pandora's Cube employees modified Xbox consoles into 'Super Xboxes"?, which allowed users to bypass the Xbox's copy protection and use pirated games; the employees also loaded illegal copies of games onto the 'Super Xbox"? hard drives. Three other employees have also been convicted and sentenced for these activities (see our previous post ).

ESA press release at http://shorl.com/fodifrifeleby

Coverage at http://shorl.com/bodradrorofryvu

Xbox 360 Launch Date Announced

Or should I say, launch dates?  Though originally it was at least heavily implied that Xbox 360 would launch in North America, Europe, and Japan on the same date, that's now the same "time frame" - Tuesday, November 22 in North America, Friday, December 2 in Europe, and Saturday, December 10 in Japan.  This falls in line with the concept that launch titles are considered those released within 3 months of the console's launch.  Though not legal news per se, this is a huge release that's going to kick off the next generation of the console wars.  Hang on to your potatoes!

Coverage at http://www.xbox.com/en-US/news/2005/0914-xbox360launchdates.htm

ESA TAKES ON MICHIGAN LAW

The Entertainment Software Association has come out swinging against Michigan's new video game legislation, announcing that it will bring a lawsuit challenging that law's constitutionality.

Michigan's new legislation seeks to restrict the distribution of games with certain violent content. The ESA claims that the bill's wording is so vague that rgame developers and retailers will not be able to tell whether specific games are covered.

The ESA has brought a similar challenge to game legislation in Illinois (see our previous post ).

ESA press release at http://shorl.com/bobyvygrotedu

THINKING OF JUMPING SHIP? WATCH OUT!!!

Microsoft just won a temporary injunction preventing a former Microsoft executive (named Kai-Fu Lee) from working for Google on certain products and services. Mr. Lee was previously the 'face of Microsoft"? in China, and Microsoft objected to him playing the same role for Google.

In awarding the injunction, the court ruled that 'Mr. Lee had misled Microsoft about his intention to return to Microsoft following his sabbatical and he continued to have access to Microsoft's proprietary information after he decided to leave Microsoft to join one of its competitors without informing Microsoft."?

However, the court stopped short of prohibiting Mr. Lee from working for Google altogether, provided that Mr. Lee does not use or disclose any of Microsoft's confidential information for Google. The result might have been different if Mr. Lee's contract contained a non-competition agreement (or perhaps a differently worded non-competition agreement).

Executive employment contracts often contain provisions dealing with confidentiality, non-competition and non-solicitation. The enforceability of these provisions varies from jurisdiction to jurisdiction.

Coverage at  http://www.shorl.com/hofynobribrito

 

ESRB CLEANS UP HOT COFFEE SPILL

The ESRB is trying to clean up the mess that resulted from the Hot Coffee incident. The ESRB has sent a strongly-worded email to US publishers requiring a full audit of all titles released in the past year to identify hidden content that could be relevant to a game's rating. The ESRB email states that disclosing hidden content that is accessible through cheat codes or Easter eggs has always been an ESRB requirement. As well, a publisher who does not wish hidden content to be accessible must remove it from the game software altogether (i.e., rather than locking it away).

Publishers have until January 9 to disclose the results of their hidden-content audit, and the ESRB says it will issue new ratings if required. It also threatens 'punitive actions"? for failure to give notice of previously undisclosed, non-playable, pertinent content if that content subsequently becomes playable through authorized or unauthorized code.

The board's email also acknowledges that it is concerned about mods and about maintaining the rating system's credibility in the face of mods. This is an interesting point "? should game publishers and the ESRB be responsible for third-party unauthorized mods (which is how Rockstar initially characterized the Hot Coffee mini-game) which add content that could potentially change a game's rating?

Coverage at  http://shorl.com/gybrenepaneme

and at http://shorl.com/giledypovapra

GIZMONDO DEVELOPMENTS

Tiger Telematics Inc., whose subsidiary and main business enterprise is Gizmondo Europe (the maker of the handheld Gizmondo game console) has put one lawsuit to rest and started another.

In 2004, Jordan Grand Prix Limited sued Tiger Telematics for breaching a sponsorship agreement relating to advertising Tiger's Gametrac device on Formula 1 racing cars. According to documents recently filed with the US SEC, Tiger settled that dispute out of court for a cash payment and an issue of shares in its restricted common stock.

Tiger has also begun another lawsuit by suing software developer Integra SP for the return of a $1.47 million loan. Tiger commenced the acquisition of Integra, but the transaction has not yet closed because (according to Tiger), Integra has failed to meet various closing conditions.

The SEC documents also reveal that Tiger has sold approximately 1.8 million shares, and that it will use the approximately $17.5 million in purchase revenues to buy 'critical game content"? for its Gizmondo handheld.

Coverage at http://shorl.com/dybrofakosysto

SONY BATTLES MICROSOFT FOR MELTDOWN SUPREMACY

Earlier this year we reported that Microsoft had recalled more than 14 million XBOX power cables because they were a potential smoke or fire hazard. Now Sony has issued a similar recall for certain power adaptors that were supplied with the new black slimline PS2. The affected adaptors were manufactured between August 2004 and December 2004 and bear the product identification code 'HP "? ATH048H03"?
Sony's recall website is here  http://www.shorl.com/batudutihyfro

WHILE NORTH CAROLINA TAKES A PASS

North Carolina's proposed legislation to criminalize the sale of violent video games to minors has died in committee. Apparently North Carolina's legislators plan to give it a go again next year.

Coverage at  http://www.shorl.com/gimytidrokipre

MICHIGAN LEGISLATION PASSED

Michigan has now passed legislation which (a) requires retailers to display game rating info, and (b) restricts the sale of sexually explicit games to minors. Additional legislation will likely be passed later this week to restrict the sale of ultra-violent games to minors.

Coverage here  http://www.shorl.com/dibypufipyra

THE GIRL SCOUTS MIGHT BE SAVED AFTERALL

In an earlier posting we discussed California's efforts to protect the Girl Scouts by passing legislation to ban the sale of violent video games to kids. The quote of the day came from Assemblyman Leland Yee, who said 'Today, the financial influence of the $10 billion video game industry was able to squash the efforts of the Girl Scouts, PTAs, and our health professionals."? 

Well, the Girl Scouts will be pleased California lawmakers have now approved similar legislation, although Aaahrnold has yet to decide whether he likes it.   

Coverage at http://www.shorl.com/dylabrebosyfra

Ebstop Closing In...

Earlier this week, the SEC approved the merger of EB Games and Gamestop, which leaves final approval in the hands of shareholders of both companies, to be determined at a simultaneous annual meeting to be held on October 6.  If approved by shareholders, the merger will result in one company holding approximately 20% of the retail video game market in the USA.

Coverage at http://www.shorl.com/fidramirisuhi

STARGATE CONFUSION CONTINUES

We reported last month about a dispute between developer Perception and publisher JoWood over the development of a Stargate SG-1 game. JoWood terminated Perception's development agreement, and questioned Perception's ability to develop a quality product.

Perception turned around and petitioned to have JoWood (who is in the middle of a financial restructuring) declared bankrupt. That petition was rejected recently by a Vienna judge.

This decision has not resolved another major issue, however "? both parties still claim to be the sole rights-holders in the game. The only sure things seem to be that a complete game cannot be expected any time soon, and that further legal wranglings seem inevitable.

Coverage at http://shorl.com/gikalavogrugry

ACCLAIM'S TRUSTEE SUES FORMER EXECUTIVES

Earlier this summer we reported about the sale of Acclaim's assets as part of Acclaim's bankruptcy proceedings. Now Acclaim's trustee is trying to dig up more assets. The trustee has filed a lawsuit against several former executives of Acclaim, seeking $150 million in damages. The trustee accuses the executives of various improper activities, including 'operating Acclaim in many instances as if it were a personal piggy bank"?.
Coverage at  http://www.shorl.com/badopramybrafo

Michigan Tackles Inappropriate Video Games

Michigan's House of Representatives has passed two bills to help enforce video game content ratings. Bills 416 and 464 would impose fines on people who sell or rent violent or sexually inappropriate video games to people under the age of 17, with exceptions if the rental or sale follows the ESRB ratings system. The bills are not yet law - the Michigan state senate still needs to approve them.

Coverage at http://www.shorl.com/fapihypramyfu and http://www.shorl.com/dalugosifretre

DON'T BE HACKING BATTLE.NET

Last year we reported that Blizzard Entertainment had won its lawsuit against Internet Gateway Inc. and various individuals who reverse engineered Blizzard's software and protocols to create the bnetd project, a free and unregulated alternative to Blizzard's Battle.net arena.  The lower court ruled that the defendants' activities violated US copyright law and also violated Blizzard's software licences and online terms of use. The Court of Appeal (8th Circuit) upheld this decision yesterday.

When the defendants agreed to Blizzard's Terms of Use and End User Licence Agreement, the defendants contractually agreed not to reverse engineer any of Blizzard's software. The Court of Appeal ruled that this contract was binding and enforceable, and that the defendants had breached it. Also, the Court of Appeal ruled that the defendants had breached the DMCA's anti-circumvention provision (by allowing gamers to play unauthorized copies of Blizzard games on bnetd) and one of the DMCA's anti-trafficking provisions (by developing the bnetd emulator for the purpose of circumventing Blizzard's copy protection). 

The decision is available here http://www.shorl.com/hegrysorarufa

MORE INSANITY

Here's a further update about Nintendo's 'insanity patent' . Another reader brought to our attention the fact that the 'Call of Cthulu"? paper-based RPG, which has been around for years (OK, I played it in high school) has a character sanity system, in which characters' sanity degrades as they are exposed to supernatural events and creatures. The astute reader pointed out that there have been several Cthulu-based computer games in the past.

But that's not all "? a little digging on GameSpot reveals that 'Call of Cthulu Dark Corners of the Earth"? is slated for release for the Xbox in October 2005. And one of GameSpot's previews says the following

'The game will feature a sanity system that's based on the Call of Cthulhu pen-and-paper role-playing game, but it's probably more akin to the system found in Eternal Darkness for the GameCube. Basically, as you encounter different horrors and things, you'll begin to slowly lose your mind, as you start suffering from panic attacks, hallucinations, and more."?

This raises some interesting questions do this game's developers need a licence from Nintendo for this in-game insanity system? If so, do they have one? Might there be a patent action in the future? And would the issued patent hold up in light of the prior art, including the Cthulu RPG?

Thanks to our readers for sharing their thoughts with us.

INSANITY UPDATE

Thanks to one of our readers, who followed up on our recent 'insanity patent"? post to point out that Nintendo's 'Eternal Darkness Sanity's Requiem"? used an in-game sanity meter. The game was released in 2002; Nintendo's patent application was filed in 2000, which would have been when the game was in development.

GameSpot's review has good things to say about the sanity meter, so you can see why Nintendo wanted to get some protection for that feature.

A CAREFUL BLOGGER IS A HAPPY BLOGGER

Several of our readers have noticed that our 'comment"? feature is disabled. A recent US lawsuit shows that this is not necessarily a bad thing a blog operator has been sued for comments posted by the blog's readers.

It's not that we think any of you would post anything lawsuit-inducing, but hey "? as lawyers, of course we're risk-averse.

Coverage at http://shorl.com/hatovelepygri

Sparks Fly At Activision

In April 2003, Spark Unlimited announced that it and Activision Inc. had entered into an exclusive publishing deal pursuant to which Activision would publish three console games developed by Spark. Now, Spark has filed a $10,000,000 suit against Activision, alleging that the publishing giant has failed to pay promised royalties for the first title developed under that deal (the console edition of Call of Duty Finest Hour), and took Spark's proposals for a sequel and gave them to its own developers.

This is not the first time Spark has been involved in a legal dispute. In April 2003, Reuters reported that Electronic Arts had settled a lawsuit against the 23 former employees who formed Spark, part of which allegedly included a confession by those employees that they improperly took internal EA documents and game code with them to Spark.

On March 4, Atari announced that it had entered into an exclusive agreement for worldwide publishing rights to all future titles developed by Spark Unlimited; between that and the lawsuit, it seems unlikely that future Spark titles will sport the Activision logo any time soon.

Current coverage at http://shorl.com/gufrogryprikege

Historical coverage at http://shorl.com/dogiluhykobry and http://shorl.com/hebrinofidroho

INSANE IN THE V-GAME

An astute Slashdot contributor has called attention to US patent no. 6,935,954, which issued August 30, 2005. The patent, owned by Nintendo, is titled 'Sanity system for video game"? a game system whereby a game character's sanity level is affected by different occurrences. Game play is affected (for example, by the character not responding to the player's commands, by the character having hallucinations, etc.) as the character's sanity level decreases.  In-game effects include (and we're not making this up) "enormous roar that emits from a tiny rodent (mouse or rat)" and "faint maniacal laughter (that gets louder and louder as the character draws deeper into insanity)".

The character's sanity is affected by encountering 'a game creature or a gruesome situation"?, and the effect of each such encounter depends on factors such as whether the character is prepared for the encounter or whether the character is rested. Luckily, sanity can also be improved (in the game, at least) by locating 'mind aids"?.

We are all used to games which track a character's physical health, so tracking mental health isn't too big a stretch. The patent acknowledges this fact, but goes on to explain that 'when circumstances beyond imagination are encountered, the brain must attempt to deal with the improbable and impossible as reality"?. We can't argue with that. And we'll just have to wait and see whether this in-game insanity is good or bad for players' mental health.

Wait . . . is that faint maniacal laughter I hear?  Excuse me while I go look for a mind aid.

Coverage at http://shorl.com/hystylehekigre

Copy of US patent at http://shorl.com/guganorinamy

GAME OVER NAMCO AND SONY SETTLE LAWSUIT

Namco sued Sony for copyright infringement after one of Sony BMG's recording artists (Lil' Flip) included samples from the Pac Man video game in his 'Game Over"? song. The parties recently settled out of court, although the terms of the settlement were not disclosed.

In an earlier posting , we reported about US Circuit Court of Appeals judgement which confirmed that sampling even three notes from a sound recording can violate US copyright law.  This case and the Namco case reiterate the importance of doing proper copyright clearances before releasing your games. You'd hate to get caught with ghosts in your closet. Especially Pinky...  he's a speedy one.

Coverage at  http://www.shorl.com/bystofryhiprapi

TRADE-MARK APPLICATIONS TELL ALL?

Earlier this year, Japanese toy company Bandai and game publisher Namco announced that they will join forces and create a holding company called Namco Bandai Holdings Inc. The companies have not yet revealed their future branding strategy; however, they have filed Japanese trade-mark applications for two alternative logos. 

It appears that no similar applications have been filed in Canada or the United States, although that's not necessary yet becuase under international treaties the companies could file Canadian or U.S. trade-mark applications within 6 months and still claim the earlier Japanese filing date. 

Coverage at http://www.shorl.com/histitudredrigry

SHAMELESS SELF-PROMO

We're pleased to report that our game-savviness (is that a word?) has now been independently verified by the video game media. The proof is on GamePolitics , the blog 'where politics and video games collide"?!
Coverage at  http://www.shorl.com/deneselidraly

SCAMMER ARRESTED FOR FIRING BLANKS

A Utah man has been arrested for buying video games and then returning the boxes (re-shrinkwrapped) with blank CDs inside. He would then sell the game CDs on eBay. Authorities say that the man was caught because he got greedy "? he kept working his scam long enough for stores and the police to catch on.

Coverage at http://shorl.com/jedutydrupusi

VILI THE WARRIOR EA TOOK ADVANTAGE OF ME!!!

Vili the Warrior, a mascot for the University of Hawaii, has sued EA for $75,000. He claims that EA used his character without permission on NCAA Football '06.

Lawsuits such as this one are common (although we doubt EA has previously been sued by a half naked guy covered in war paint).  Earlier this month,Sony won the first stage of a lawsuit involving Sony's use of an ice cream truck in Twisted Metal (see our coverage here ). The risk of a lawsuit makes copyright and trade-mark clearances an extremely important part of game development and production. 

Vili Coverage at  http://www.shorl.com/hipruhedamepra

MAN ARRESTED FOR VIRTUAL MUGGINGS

We're all aware that people sometimes get mugged for their flashy possessions "? an iPod, say, or an expensive pair of shoes. This sad trend has now made its way into the virtual world. A Japanese man suspected of conducting on-line muggings in the game Lineage II has been arrested. The man allegedly used software bots to attack and rob characters in the game, then sold the virtual possessions for real cash through an auction website.

Coverage at http://shorl.com/banudryledryve

HOW TO ARGUE FOR OR AGAINST VIDEO GAME LEGISLATION

Need to promote or condemn video game legislation? Here's the easy solution pick a study.

Thereare now studies which support both arguments. Video games encourage people to be violent! No they don't! Yes they do! No!  Yes! You pick"?

Coverage at  http://www.shorl.com/dovodihogryte

UPDATE BURKE V. MICROSOFT

One of our readers asked for an update on the Burke v. Microsoft case. For those of you who don't know about the case, Sean Burke is the gamer who sued Microsoft in October 2004 because his Xbox kept crashing. He alleged that "the defective Xboxes stop working after minimal usage, after unreasonably, unconscionably, unusually and unexpectedly short amounts of time."

OK, so here's the update nothing has happened since October. 
Alright, that's not completely true; there have actually been 4 status hearings since October. And another one is scheduled for September 19, 2005. But that appears to be it. We'll let you know if something exciting happens on September 19.

A BLIZZARD OF PRIVACY QUESTIONS

Blizzard Entertainment is receiving flack from some players for scanning players' computers for illegal cheats and hacks relating to the massively multiplayer online game World of Warcraft. Some players claim that preventing cheating and hacking is not a sufficient excuse to impinge on their privacy. Blizzard, on the other hand, says that looking for hacks in the actual game itself is not unreasonable, and points out that World of Warcraft's end-user licence agreement (which players must review and acknowledge before playing) explicitly states that Blizzard reserves the right to scan for hacks and cheats.

Putting information about the scans in the EULA is a good move (Sony ran into trouble with Everquest players because it performed similar scans without giving notice to its players), and this story highlights the importance of actually reading software licence agreements instead of just scrolling through and hitting 'I accept"?.  Personal hard drives are increasingly open to prying eyes "? readers may recall that Microsoft generated much discussion when it announced new measures to verify that users seeking upgrades actually had legitimate copies of its operating system -- and it is a good public relations move to be as open about such activities as possible.

Coverage at http://shorl.com/bogatygravuge

STARGATE DISPUTE TURNS UGLY

Video game lawyers around the world are no doubt on stand-by now that Australian developer Perception has accused publisher JoWood of libel. JoWood terminated Perception's development agreement and publicly questioned Perception's ability to develop a quality Stargate SG-1 game.

The interesting twist is that Perception claims to be the official MGM licensee of the Stargate SG-1 rights, so Perception will continue the project despite the termination. We must admit, we're scratching our heads on this one. We've reviewed plenty of licence agreements and development agreements and can't figure out why this is even an issue just look on the first page of the contract and figure out who is the licensee!

In any case, it sounds like a lawsuit is imminent.
Coverage at  http://www.shorl.com/gevyrenudropre

NO CIGAR

An Alabama jury recently convicted Devin Moore of capital murder. In his defence, the 20 year-old partly blamed his actions on GTA. The jury didn't buy it.

As you might expect, the story isn't over yet  the next chapter is the civil lawsuit filed by the victims' families against Take-Two and others. Anyone know a good video game lawyer?

Coverage at  http://www.shorl.com/dedradrogibryre

360 Hardware Requires Licenses

Microsoft will require 3rd-party accessory manufacturers to obtain a license to make their products function with the upcoming Xbox 360 console, and will enforce this requirement with a security mechanism through which the 360 will validate the accessories when they are used.  Although Microsoft has a licensing program with the original Xbox, it is optional though a license must be obtained to display the Xbox logo on a current-generation accessory, no such permission is required if the accessory does not contain Xbox branding.  With this move, Microsoft has positioned itself to both regulate 3rd-party 360 hardware content and, of course, receive more money.

Coverage at http://www.shorl.com/jejudeprupristu

DEATH ATTRIBUTED TO EXCESSIVE GAMING

CBC reports that a 28-year-old South Korean man has died after gaming almost continually for 50 hours. South Korean officials say that the man (who apparently quit his job in order to have more time to play games) is presumed to have died from heart failure due to exhaustion.

There must be more to this story (for example, was the man suffering from bad health to begin with?), but it serves as a reminder that all things, including video gaming, are best taken in moderation.

Coverage at http://shorl.com/bifropopymufri

ANOTHER PSP SUIT

Sony has started another lawsuit against an on-line retailer who is selling PSPs in the UK. This time Sony has its sights set on Lik-Sang.com, a well-known Hong Kong video game retailer. Sony will not officially launch the PSP in the UK until September 2005, and is taking action in the meantime to prevent PSPs from other parts of the world from being sold to UK customers.

Sony brought another lawsuit against Lik-Sang in 2002 to try to prevent the retailer from selling unauthorized hardware mods for the PS2.

Coverage at http://shorl.com/bygamugubrigro

and at http://shorl.com/byfrybrudodysto

SONY SEEKS FEWER DAMAGES

Sony has apparently reduced its damages claims against at least one PSP importer from UKP1,000 to UKP500. No word on Sony's reasons for the compromise, especially considering Sony's recent success with at least one other grey importer. 

Coverage here  http://www.shorl.com/befeprogugejy

Our coverage of the grey importation claims is here .

 

COURT SHOOTS DOWN VIDEO GAME COMPANIES

In an earlier post , we reported that a wildlife photographer had sued various companies (including a coin-op game distributor and a software distributor) for copyright infringement.  The photographer claimed that the companies had infringed his copyrights by copying, distributing and displaying various images of deer and turkey which he photographed.  The photos were used in the video games 'Big Buck Hunter"?, 'Big Buck Hunter  Shooters' Challenge"? and 'Big Buck Hunter 2:  Sportsmen's Challenge"?. 

The defendants applied to transfer the case from Texas to Illinois. That request was recently denied. 

The court considered following factors (1) the convenience of the parties; (2) the convenience of material witnesses; (3) the availability of process to compel the presence of unwilling witnesses; (4) the cost of obtaining the presence of witnesses; (5) the relative ease of access to sources of proof; (6) calendar congestion; (7) where the events in issue took place; and, (8) the interests of justice in general.

The court's comments on factors 7 and 8 are interesting. On factor 7, the court noted that although the products are marketed and sold nation-wide, the centre of gravity of the activity is the place where the infringing party designed and manufactured the product. On factor 8, the court noted that the plaintiff's choice of forum should be accorded substantial weight, especially when the plaintiff is an individual, resident of the forum and where the defendants are non-resident corporations.
The case doesn't appear to be reported yet, but the citation is Biggsv.Bass Pro Outdoor World, LLC, [2005] U.S. Dist. LEXIS 14548 (Tex. Dist. Ct.) (July 20, 2005).

CHINA SETS NEW GAMING REGULATIONS

The Chinese government has issued several new regulations relating to the on-line gaming industry. Chief among these is a new policy that prohibits minors (under 18) from playing on-line games in which players are able to kill other players. This regulation could have a very significant impact on the Chinese game industry China has an estimated 20 million on-line gamers, a substantial portion of which are under 18.

Other new regulations require game operators to implement timing systems that automatically log players off of on-line games after a set period of continuous play and create a requirement that a company trying to become a licensed on-line game operate must have registered capital of at least US $1.23 million.

Coverage at http://shorl.com/dutrevastikubra

ROCKSTAR SMART ON I.P., NOT SO SMART ON P.R.?

As you know, Rockstar has received a lot of publicity lately regarding the hot coffee fiasco . Some critics say that any publicity is good publicity. Rockstar seems to buy that because they're getting more publicity now, only this time on the trade-mark front.

Rockstar recently opposed a trade-mark application by Rawkstars, a small charity in Boston. The charity provides free instruments and music lessons to kids, and does so in association with a logo that contains the word "RAWKSTARS" and a picture of a 5-point star. Rockstar claims this logo is confusing with its name and its R-Star logo.

Clearly the logos are similar, and from a trade-marks perspective the opposition is probably a good idea a trade-mark is entitled to more protection if there are few similar marks on the trade-marks register. But is this a good idea from a PR perspective? You decide.
Coverage here http://www.shorl.com/gubrotutibrygri

VIDEO GAME COUNSELLING?

The Criminal Code of Canada includes an offence of “counselling”. If you “counsel” someone to commit an offence, you can be convicted regardless of whether the offence is committed. The Supreme Court of Canada recently addressed this criminal provision, and comments by one of the judges show how the “counselling” offence may be relevant to video games.

The Court decided that “counsel” means the deliberate encouragement or active inducement of the commission of a criminal offence. It does not merely mean “to advise”. That definition is far too broad, and would involve a serious limitation on freedom of expression. As one of the judges pointed out (and this is where video games come in), using this broad definition would mean that movies, video games, textbooks, and other literary works that describe or depict the commission of an offence would be subject to state scrutiny.

This comment demonstrates two important things. First, the Supreme Court of Canada is aware of video games and how their content might be controversial. Second, it looks to us like the claim could still be made that a video game “deliberately encourages” criminal offences. Clearly this is a difficult argument to support. As the case points out, merely describing or depicting certain behaviour does not necessarily qualify as encouraging that behaviour. But is a violent video game different from a violent movie, in that the game player is an active participant in the game violence while a movie-watcher is purely passive? No doubt some parties would make that claim. Still, it's unlikely that we will see a criminal case involving such a charge any time soon.

So, what's the best thing to draw from this case? Probably the minor satisfaction that the Supreme Court of Canada has acknowledged, albeit in very brief passing, that video games are expression that is worthy of protection and that should not lightly be made subject to criminal sanctions.

The case can be found at http://shorl.com/gonofobufradry

R. v. Hamilton
July 29, 2005, Supreme Court of Canada
2005 SCC 47, 2 SCR 432
KEYWORDS: counselling - criminal law - content of video games
SUMMARY BY: David Sprately

SONY GIVES FROSTY TREATS A LICKIN'

Sony recently won round two in its battle with Frosty Treats Inc.

Frosty Treats is one of the largest ice cream vendors in the US.  Its trucks are covered with pictures of the various products available for sale.  The trucks are also labelled with the words "Frosty Treats" and a picture of a clown's face.

Sony's "Twisted Metal" games contain ice cream trucks labelled with the words 'Frosty Treats"? and with a clown graphic. Frosty Treats Inc. sued Sony for trade-mark infringement and dilution and for unfair competition.  (Maybe Frosty Treats isn't big on ice cream truck carnage.) 

In any case, the lower court granted summary judgment in favour of Sony, and the US Court of Appeals agreed. The courts ruled that the words "Frosty Treats" could not be protected because they were generic or descriptive. And the courts ruled that the Sony's clown graphic wasn't confusing with Frosty Treats' clown graphic. 

Although Sony won this case, video game developers and publishers should still be careful when using words and logos in their games.  The courts could have come to a different conclusion in this case if the clown logos were more similar or if Frosty Treats had been more diligent in creating and protecting "Frosty Treats".

A copy is available here http://www.shorl.com/dipekiverene

Frosty Treats, Inc. v. Sony Computer Entm't Am., Inc.
July 25, 2005, US Ct. of Appeal, 8th Circ.
[2005] U.S. App. LEXIS 15127 .

Another Xbox Modder Sentenced

Hitesh Patel, a 31-year-old employee of Washington DC-based game retailer Pandora's Cube, has been sentenced to 8 months for selling 'Super Xboxes,"? which are Xboxes modified with larger hard drives which play imported and pirated games. Because Patel sold many units with pirated games pre-installed, it is difficult to assess the extent to which his prosecution is due to modding, versus the distribution of pirated games.

See article at http://www.shorl.com/fekobribrybyru

AND NOW THE LAWSUITS

It was only a matter of time. An 85-year-old New York woman has filed a lawsuit against Rockstar Games and Take Two Interactive Software Inc., claiming that they engaged in false, misleading and deceptive practices by selling GTA San Andreas when it contained sexually explicit content.

The plaintiff claims she has suffered damage because she bought the game (then rated M for mature players 17 and over) for her 14-year-old grandson, without knowing about the explicit content (which requires cheats to access) which really makes the game subject to an Adults-Only rating. Presumably the issue of how children under 17 obtain M-rated games will come up at some point in the trial. The woman has requested a jury trial, no doubt thinking that the recent media hype about video game content can only help her case.

On another front, Take Two has been informed by theFederal Trade Commission's Division of Advertising Practices that it is initiating an inquiry into the game's advertising claims.

Coverage http://shorl.com/hatregodresebro

and at http://shorl.com/jafrumelipydo

FIGHTING ILLINI

Illinois Governor Rod Blagojevich has finally signed the Safe Games Illinois Act into force. Illinois will now limit the sale and rental of games with 'violent and sexually explicit"? content, and retailers who sell or rent such games to people 18 or under are subject to fines. The Act becomes effective on January 1, 2006.

The Electronic Software Association, the Video Software Dealers Association and the Illinois Retail Merchants Association have since filed a lawsuit trying to prevent the implementation of the Illinois legislation. The lawsuit claims that the legislation directly prevents fully protected expression, and will cause a further chilling effect because it is vague and unclear. Since similar legislation has been overturned elsewhere, this will be an interesting fight.

Coverage at  http://shorl.com/honystifukyva

Governor Blagojevich's press release at http://shorl.com/bisubrydribrule

ESA press release at http://shorl.com/bumepromebuse

Us House Of Representatives Burned By Hot Coffee

Rockstar Games, and its parent Take-Two Interactive, are under investigation by the feds. The US House of Representatives has voted 355 to 21 to support a Federal Trade Commission inquiry into GTA San Andreas, asking whether the companies intentionally deceived the Entertainment Software Ratings Board by failing to disclose the graphic sexual content hidden within San Andreas.

Coverage at http://www.shorl.com/budugosibrulo

Video Games Get More Annoying

Massive Inc., a New York-based company which places ads in video games, has developed technology that downloads full-motion video ads from the internet and inserts them automatically into a certain PC game (Anarchy Online). Video game ad insertion has traditionally been problematic because ads would need to be integrated into the game's code, leading toward logo or brand placement instead of current ad campaigns or timely offers; however, because Massive's technology permits ads to be constantly updated via the web, ads can be current, timely, and frequently changed. Although currently a PC trend due to the broad-based availability of the internet for PC gaming, the next generation of consoles' drive for ubiquitous online availability means no one will have to wait long for their electronic avatars to be assailed by constant commercialization. Just like the real world, only with anti-aliasing!

Coverage at http://www.shorl.com/hogrykifrastyso

SIM-PLY APPALLING?

Jack Thompson, the outspoken American lawyer who has many things to say about video games, is turning his sights from Hot Coffee-gate to another game which is so ripe with depravity that even GTA can't compare. What game is it, you ask? Why, The Sims 2, of course.

The Sims is a 'life simulator"? "? you guide your character through everyday life, which of course includes tasks like going to work, preparing food, exercising, washing, etc. As in real life, Sims are occasionally naked. EA deals with this with tasteful blurring of sensitive regions (and remember, this is all pixelated anyway). Thompson claims that cheats exist which let you remove the blurring, and thus see your Sims in their full glory. EA denies this claim, stating that there's nothing to see even if the blurring is removed "? Sims are mannequin-esque, and not anatomically correct.

We're not going to say much more about Thompson's claims for fear that he might sue us too. We do note, however, that one particularly prescient video game lawyer apparently realized how The Sims had its dark side before the Thompson story hit GameSpot see the post from July 20 , in particular the last sentence. Perhaps our blog really IS getting out there.

Coverage at http://shorl.com/bagrinuhobylu

HOT COFFEE? BRING ON THE ATTORNEYS!

A Florida attorney has filed a lawsuit and sought an injunction to prohibit retailers such as Best Buy and Walmart from selling GTA San Andreas to minors, in light of the hot coffee scandal. Who would have seen this one coming?
Coverage at http://www.shorl.com/gepodrubrotebry

SONY CRACKS DOWN ON NUPLAYER

We described in a post  last month how Sony is cracking down on retailers who are selling imported PSPs in the UK. As part of this campaign, Sony recently obtained an injunction preventing online game retailer Nuplayer from selling imported Japanese PSPs in the UK. The court found that Nuplayer had no arguable defence against Sony's claim of trade-mark infringement, and required Nuplayer to pay damages and costs, give up its remaining inventory of Japanese PSPs, and provide details of profits, suppliers and the names and addresses of customers who bought more than 5 PSPs.

Nuplayer remains unshaken, however "? it claims that it only had a few Japanese PSPs remaining, and is already taking pre-orders in the UK on Europrean PSPs for a fair bit less than the recommended retail price. According to Nuplayer, its sales of imported European PSPs will more than make up for the damages it was required to pay to Sony.

Coverage at http://shorl.com/davistyfredite

TAKE TWO OOPS, PARDON US, OUR MISTAKE….

Take Two has now admitted that the 'hot coffee"? sex scenes in GTA San Andreas were created by Rockstar, not a modder. And the ESRB has changed the game's rating from M to AO. Rockstar is working to create a new version of San Andreas that would qualify for the original M rating. 

The ESRB's change raises an interesting debate. On the one hand, producers are required to disclose all content to the ESRB so games can be properly rated. On the other hand, the AO content is not accessible without the mod, which might lead some people (a video game lawyer perhaps?) to argue the game should be rated based on what's accessible without the mod (afterall, the Sims can be made pornographic too, but the ESRB doesn't rate mods).

Coverage at  http://www.shorl.com/bibrofilavebru

Our earlier posting is here .

ACCLAIM BY ANY OTHER NAME IS STILL BANKRUPT

Acclaim Entertainment has been liquidating its assets since it filed for bankruptcy in September. Its trustee has now negotiated an agreement to sell the 'ACCLAIM ENTERTAINMENT"? name to Central Investment Holdings LLC for $100,000. 

At one point, Acclaim had a heck of a trade-mark portfolio. Now, however, most of its marks have been abandoned (at least in Canada). Some of the abandoned marks include JUICED, VEXX, BMX XXX, RAZOR, JINX, FURFIGHTERS, TRICKSTYLE, ARMORINES, RE-VOLT, IGGY'S RECKIN' BALLS, BATTLE MONSTERS, KILLING ZONE, SPIRIT MASTER, FORSAKEN, CONSTRUCTOR, COLLEGE SLAM, ARENA ENTERTAINMENT, FLYING EDGE.

Ironically, their registration for SWEAT THE DETAILS is still alive.

Coverage at  http://www.shorl.com/heturalogryvi

Court May Exercise Jurisdiction If Party Delivered Product Into A State's "Stream Of Commerce"

Biggs, a wildlife photographer in Fort Worth, Texas, sued Bass Pro Outdoor World LLC, Incredible Technologies Inc., and Play Mechanix Inc., for copyright infringement, claiming the defendants had infringed his copyright in images of deer and turkey he had photographed by including them in several software and coin-operated video games, including "Big Buck Hunter,""Big Buck Hunter Shooters' Challenge," and "Big Buck Hunter 2: Sportsmen's Challenge."

Two of the defendant companies asked the court to dimiss the lawsuits.  They claimed the court had no jurisdiction over them because they weren't located in Texas.  The court refused because the first defendant had encouraged sales in Texas, and the second defendant intended to distribute the games as widely as possible, which would have included Texas.  Both defendants ran afoul of the "stream of commerce" theory.

Under the stream of commerce theory, a court may exercise specific jurisdiction when the defendant's link with the forum arises from the sale and manufacture of a product which has caused harm in the forum state, so long as the defendant delivered the product into the stream of commerce, expecting that it should be purchased or used by consumers in the forum state.

Biggs v. Bass Pro Outdoor World LLC
July 20, 2005, Tex. Dist. Ct
[2005] U.S. District LEXIS 14548
Summary by Arsen Krekovic.

Centre Of Gravity Of Activity Is PLace Where Infringing Party Designed And Manufactured Product Case Summary

Biggs, a wildlife photographer in Fort Worth, Texas, sued various companies, including a coin-operated game distributor and a software distributor, for copyright infringement.  Biggs claimed that the companies had infringed his copyrights by copying, distributing and displaying various images of deer and turkey which he photographed, in the games "Big Buck Hunter," "Big Buck Hunter Shooters' Challenge," and "Big Buck Hunter 2: Sportsmen's Challenge."

The defendants applied to transfer the case from Texas to Illinois and were denied.

The court considered the following factors  (1) the convenience of the parties; (2) the convenience of material witnesses; (3) the availability of processes to compel the presence of unwilling witnesses; (4) the cost of obtaining the presence of witnesses; (5) the relative ease of access to sources of proof; (6) calendar congestion; (7) where the events in issue took place; and (8) the interests of justice in general.

In handing down its decision, the Texas District Court stated that the first factor is "perhaps the most important factor in determining whether or not to transfer a case..."  In this particular isntance, a transfer of venue would have clearly shifted the inconvenience and expense from the defendants to Biggs.

On factor 7, the court noted that although the products which allegedly infringed copyright were marketed and sold nationally, the centre of gravity for the activity is the place where the infringing party designed and manufactured the product.  On factor 8, the court noted that the plaintiff's choice of forum should be accorded substantial weight, especially when the plaintiff is an individual, resident in the forum, and where the defendants are non-resident corporations.

The citation isBiggs v. Bass Pro Outdoor World LLC  [2005] U.S. Dist. LEXIS 14548 (Tex. Dist. Ct.)(July 20, 2005).

Summary by Arsen Krekovic.

Japanese Gaming Industry To Self-regulate

Amid concerns over recent video-game related violent incidents in Japan, the Japanese gaming industry is rolling out a video game ratings system. The system asks retailers to not sell over-18 rated games to minors unless they are accompanied by an adult, but retailers are under no legal obligation to comply. It's been speculated that this is a move by the Japanese gaming industry to forestall government regulation on video game content, in light of the recent move by Kanagawa prefecture to ban the sale of Grand Theft Auto III to minors. Whether this move will be enough to keep the government out of gaming is an open question; the North American ESRB ratings system, which itself was set up by big gaming companies to avoid government regulation, is presently being eroded by recent government bans on the sale of games to minors, and by Ms. Hilary Clinton's actions in the wake of the Hot Coffee fiasco.

See article at http://www.shorl.com/bygrinetratiri

VIDEO GAME LAWYERS THE KIDS LOVE US

Here's an article about summer camps that use video games to inspire learning. There's nothing new about computer camps, but this one is obviously special. Here's what 14 year-old Matthew Bildzok had to say about his future 'I love playing video games. When I grow I up, I want to be a game developer or lawyer."? 

Today it's the kids. Can our paparazzi be far off?
Article at  http://www.shorl.com/dyfrybriprupafri

THE LAWYERS DESCEND ON MAJESCO

Several law firms have filed class action lawsuits against Majesco Entertainment Company. The complaints--which were filed on behalf of investors who purchased the publicly traded securities of the company--allege that the company violated US securities laws by issuing misleading statements to inflate the value of the company's stocks. 

Press release at http://www.shorl.com/jagrokevenuna

And at  http://www.shorl.com/hafrugrystokulo

The Death Of P2p?

The end of June brought sad news for the peer-to-peer (p2p) community, with the US Supreme Court finally deciding MGM v. Grokster. The decision, which holds p2p company Grokster liable for the unauthorized trading of copyrighted works on its networks, modifies the 1984 Sony Betamax case in which the US Supreme Court stated that manufacturers of devices capable of copyright infringement (such as VCRs and photocopiers) are not liable for such infringement, provided their devices also have legitimate uses. Grokster does not significantly change this 1984 decision, but instead carves the niche that 'one who distributes a device with the object of promoting its use to infringe copyright, as shown by clear expression or other affirmative steps taken to foster infringement, going beyond mere distribution with knowledge of third-party action, is liable for the resulting acts of infringement by third parties using the device, regardless of the device's lawful uses."?

Instead of outlawing p2p networks, the ruling warns against improper p2p software marketing. Unfortunately, determining what might constitute the "?promotion of copyright infringement' is not made readily clear by the ruling, leaving p2p software companies on potentially unstable legal footing. Whether this uncertainty will result in a chilling effect on p2p software remains to be seen.

See the case at http://caselaw.lp.findlaw.com/scripts/getcase.pl?court=US&vol=000&invol=04-480

Modding Is Illegal... At Least If 80 Pirated Games Are A Mod

A 22-year old man was recently charged in the UK for modifying and selling Xboxes. The modification of video game consoles is illegal in the UK due to its adoption of the EU Copyright Directive. Although official comments from ELSPA - the Entertainment& Leisure Software Publishers Association - state that this conviction sends a signal to would-be modders, the importance of this case should not be overstated. Here, the Xboxes were not only chipped, but also sold with 80 pre-installed pirated games, leading us to wonder whether it was the software piracy or the mod chip that lead to enforcement.

Article at http://www.shorl.com/hugepofafavi

GAMESPOT DOUBTS ROCKSTAR

In an earlier posting  we discussed the recent 'hot coffee"? controversy surrounding GTA San Andreas.

Gamespot has done its own investigating and questioned Rockstar's allegations of hacker mischief. It appears the cheat codes work on the PS2 version of the game (which comes on an unmoddable DVD).
Coverage at  http://www.shorl.com/fulegrubripryva

BLAM! POW! SONY AND MICROSOFT IN SUPERHERO SHOWDOWN

Microsoft has joined forces with Marvel Enterprises to develop a massively multiplayer online game featuring Marvel's cast of superheroes (which includes Spider-Man, the Hulk, the Fantastic Four and the X-Men). Not surprisingly, this is a response to a similar deal reached last month between Sony and DC Comics (whose superhero stable includes Batman, Superman and Wonderwoman)

The entertainment industry is starting to recognize the commercial potential of MMOs, and these agreements reflect that understanding. Currently, the most successful MMOs are PC-based and generally require powerful (and expensive) home computers. However, both Sony's and Microsoft's next-gen consoles will support MMOs, and breaking into that market (especially in Asia, where MMOs are hugely popular) is an important part of their marketing strategy.

Coverage at http://shorl.com/dodrojanemoje

GTA RETHRONED?

We all know that GTA is a fairly violent game. And the main character (CJ) can already have sex in the game (although you don't see any of it). That's why the game is rated M.

But now there's a new mod available that allows you to see and control the action (so to speak).  One of themodders who created the mod says the mod just unlocks content that's already on the disc. 

After a long silence, Rockstar now denies this claim. Rockstar says the modders reverse engineered the source code and created the mod themselves. 

The ESRB is investigating, but that's not enough for Hillary Clinton she wants the FTC to investigate too. 

Coverage at  http://www.shorl.com/fabibrugrystegra
And at  http://www.shorl.com/fydakystajesy

GTA DETHRONED?

It may be a dubious honour, but Eidos' '25 to Life"? may have caught up to GTA as the target of choice for concerned lawmakers before it even hits store shelves. A New York Senator is trying to stop the game from reaching stores in September Senator Chuck Schumer is calling on Sony and Microsoft to cancel their licence agreements with Eidos (although as concerned video game lawyers, we would always caution our clients to be careful not to induce any third party to breach its contract), and on retailers not to stock the game.

25 to Life lets gamers choose between playing a police officer or a gangster, and has already been rated Mature (17+) by the ESRB. The game's opponents are concerned about the game's effect on children, but the ESRB rating in theory means that children younger than 17 are not able to purchase or rent it. Once again, this raises one of the most prevalent issues in gaming some games definitely contain content that is not suitable for children, in the same way that some movies do; this does not mean that such games (or movies) should not be made available to adults. Age restrictions are meant to address this issue. The problem, of course, is how to limit access to such games (or movies) only to those above the specified age? Young children often rent and play Mature-rated games, in the same way that young children somehow end up in theatres watching PG or R movies. This is certainly partly an industry issue (improved self-regulation with respect to age ratings is one way of answering concerns such as Sentator Schumer's while still allowing adult-oriented games to be produced and sold), but it is also a cultural issue and a parental issue.

Coverage at http://shorl.com/fysirylybratre

Senator Schumer's press release at http://shorl.com/fysturigeprutu

HIP INTERACTIVE IS UNDER RECEIVERSHIP

Video game company Hip Interactive is now under court receivership. The Ontario Court Superior Court of Justice appointed Ernst& Young as interim receivers. According to reports, the company will likely be liquidated.

Coverage at  http://www.shorl.com/fefebrajunavi

VIDEO GAME DEFENDANTS' REQUESTS GET SHOT DOWN

Biggs, a wildlife photographer, sued various companies (including a coin-op game distributor and a software distributor) for copyright infringement. Biggs claimed that the companies had infringed his copyrights by copying, distributing and displaying various images of deer and turkey which he photographed. The photos were used in the video games 'Big Buck Hunter"?, 'Big Buck Hunter Shooters' Challenge "? and 'Big Buck Hunter 2: Sportsmen's Challenge"?. 

Two of the defendants asked the court to dismiss the lawsuits. They claimed the court had no jurisdiction over them because they weren't located in Texas. The court refused because the first defendant encouraged sales in Texas and the second defendant intended to distribute the games as widely as possible. 
The case doesn't appear to be reported yet, but the citation is Biggsv.Bass Pro Outdoor World, LLC, [2005] U.S.Dist. LEXIS 12519 (June 27, 2005)

EA WINS RACIAL LAWSUIT

Steve Neal is an African American male and former football player for Western Michigan University. He's also a Caucasian player for the New England Patriots.

Oh alright, they're two different football players with the same name.

EA used Western Steve's photograph in Madden NFL Football 2005, but (oops!) paired it with New England Steve's statistics. Western Steve sued EA for invasion of privacy "by appropriation", invasion of privacy "by false light", and defamation. In a recent decision, the US District Court ruled in favour of EA.

The court concluded that Western Steve had licensed the use of his photograph Western Steve had signed a contract with the NFL Players Association giving the Association the right to licence third parties (such as EA) to use his likeness and name. The Association sublicenced that right to EA. Therefore, Western Steve lost the invasion of privacy "by appropriation" argument.

The court also concluded that EA hadn't placed Western Steve in a "false light" by using his likeness as a representation for a Caucasian player. To win on this point, Western Steve had to show that EA's actions were highly offensive to a reasonable person. The court didn't think that portraying an African American player as a Caucasian player met the test (although the court might have come to a different conclusion if dancing were a larger part of football). For the same reason, the court concluded that EA hadn't defamed Western Steve by attributing the wrong biographical information to him.

The case is available here http://www.shorl.com/bubrajujymihe

The citation is Neal v. Elec. Arts, Inc., [2005] U.S.Dist. LEXIS 12324 (June 1, 2005).

 

A DIFFERENT KIND OF GAME VIOLENCE

You know all about violence IN games. How about violence for PLAYING games? 

China has set up a clinic which (among other things) uses shock therapy to treat video game addiction. Maybe this is the new alternative to anti-violence legislation"?
Coverage at  http://www.shorl.com/bujarodupimo

EUROPEAN PARLIAMENT REJECTS SOFTWARE PATENT LAW

It looks like the EU's on-again off-again attempt to create a single European-wide method of patenting software is off again, for good. The bill would have given patentees EU-wide protection for computerized inventions (including computer programs when the software is used in the context of realizing inventions). The European Parliament has rejected the bill, and the European Commission (which drafted the bill) has stated it will not submit any more versions.

Proponents of the failed bill claim this means continued inconsistency and uncertainty with regard to software patenting in Europe. Others are pleased with the bill's failure, saying it would have stifled development and resulted in expensive legal battles over unclear laws.

As a result, patents will continue to be subject to national laws throughout Europe; game developers seeking patent protection in Europe will not have a one-stop-shop, but will have to proceed to seek patents in individual countries.

Coverage at http://shorl.com/hutudihevohy

and at http://shorl.com/digrahajurofo

INCREDIBLE VIOLENCE?

UK tabloids are reporting that an 11 year old boy appeared in court recently to explain what drove him to stab his baby nephew while playing The Incredibles on his PS2. It's not clear whether there are any allegations that the game itself caused the violence "? apparently the youth was frustrated that his game character kept dying while his nephew cried in an adjoining room, but there were many other stress-creating factors to do with the boy's family situation, school situation, etc.

It certainly seems incredible to point the finger at video games in this context, but the mere fact that the stories see fit to mention the game-playing in association with the violence is revealing.

Coverage at http://shorl.com/javarodestilu

Sony Wins Round Two In Its Battle With Frosty Treats Inc. (Case Summary)

Frosty Treats is one of the largest ice cream vendors in the US.  Its trucks are covered with pictures of the various products available for sale.  The trucks are also labeled with the words "Frosty Treats" and a picture of a clown's face.

Sony's "Twisted Metal" games contain ice cream trucks labeled with the words "Frosty Treats" and with a clown graphic (the "Safety Clown").  Frosty Treats Inc. sued Sony for trade-mark infringement and dilution and for unfair competition. 

The Court of Appeal affirmed the lower court's summary judgment against the Plaintiff who had not registered its marks and could not meet the burden of establishing that the marks are protected under trademark law. The phrase "Frosty Treats" was held to be generic, or alternatively, descriptive without secondary meaning. The court also held that the clown graphic was not eligible for protection because there was no likelihood of confusion.

To prevail in this case Frosty Treats had to demonstrate that the mark "Frosty Treats" has acquired a secondary meaning. Secondary meaning is an association formed in the minds of consumers between the mark and the source or origin of the product. To establish secondary meaning, Frosty Treats would have had to show that "Frosty Treats" serves to identify its goods and distinguish them from those of others. Secondary meaning does not require the consumer to identify a source by name but does require that the public recognize the mark and associate it with a single source.

According to a survey conducted by the Plaintiff only 1% of respondents shown images of the Frosty Treats ice cream van mentioned Frosty Treats by name. There is no indication in the record that the survey respondents (apart from the one percent) were familiar with the vans because of the small nine-by-four-inch "Frosty Treats" decal on the rear portion of the side of the van, the only place where the phrase "Frosty Treats" appears on the vehicle.

Furthermore, Sony's expert conducted a survey of 204 children and 200 adults who had purchased ice cream from an ice cream truck in Frosty Treats' largest markets. When asked to volunteer the names of any ice cream trucks that they had purchased ice cream from, not one recalled the name "Frosty Treats." The evidence as a whole simply did not provide a sufficient basis for concluding that the phrase "Frosty Treats" had acquired a secondary meaning. Accordingly, the Court found that it could not be protected under trademark law.

Apart from finding that the "Frosty Treats" and Safety Clown marks were unenforceable, the Court of Appeal affirmed the district court's holding that the Plaintiff failed to present sufficient evidence with regard to likelihood of confusion between the trade dress of its vans or its clown and any depictions of vans or clowns in Defendant's video games. The six criteria used to determine whether a likelihood of confusion exists are (1) the strength of the owner's mark; (2) the similarity between the owner's mark and the alleged infringer's mark; (3) the degree to which the products compete with each other; (4) the alleged infringer's intent to 'pass off' its goods as those of the trademark owner; (5) incidents of actual confusion; and (6) the type of product, its costs and conditions of purchase.

Here the court held that the "use of a clown on ice cream trucks is hardly novel", and the trade dress of Frosty Treats's vans resembles that of a generic ice cream truck and therefore lacks distinctiveness within the marketplace. There was, moreover, no evidence to indicate that Frosty Treats's Safety Clown mark and trade dress are well known.

With respect to the second criterion, the Safety Clown mark and trade dress of Frosty Treats's vans were found to be "visually distinct" from the relevant depictions in the Twisted Metal games and "no reasonable juror could find that they are similar." Frosty Treats' CEO, Carl Long's assertion that, "... if the Safety Clown had a brother who was nasty and mean, it would look somewhat like" the clown in Twisted Metal, wasn't enough to carry the day.
Transcript available here http://www.shorl.com/dipekiverene

Frosty Treats, Inc. v. Sony Computer Entm't Am., Inc.,
July 25, 2005, US Ct. of Appeal, 8th Cir.
[2005] U.S. App. LEXIS 15127
Summary by Arsen Krekovic.

PSP PIRACY BATTLE ESCALATES

Ingenious hackers (is there any other kind?) have found a way to make the PSP play pirated copies of commercial games through the hand-held's Memory Stick slot. The hackers exploited a bug in early versions of the PSP firmware (present on the original Japanese PSPs and on some early US PSPs); more recent versions of the firmware already address the problem, and Sony is planning on providing automatic firmware upgrades on future game titles.

Although Sony is downplaying this development's significance, others fear that it is the beginning of a long fight between Sony and PSP hackers.

Coverage at http://shorl.com/fygrydunonodu

SELF-REGULATION IN JAPAN TOO LITTLE TOO LATE?

As mentioned previously , the game industry in Japan is considering various self-regulatory initiatives in order to avoid game content legislation. The main form of self-regulation being considered is a voluntary age rating system, which would include buyers having to produce ID to purchase adult-oriented games.

There has been a great deal of recent media coverage in Japan of violent video games and possible links between such games and juvenile crime.  One regional government has already banned sales of GTA III to underage customers under existing laws, and other regional governments are considering game-oriented regulations.  It will be interesting to see whether the industry's attempts at self-regulation are sufficient to prevent such government regulation, especially given the recent sensationalism over violent video games.

Coverage at http://shorl.com/bomigomilagy

AMD V. Intel

Chip-maker AMD recently filed an antitrust lawsuit against Intel in the US District Court in Delaware. AMD claims that Intel threatened AMD's customers and used other unfair tactics in an attempt to secure a monopoly. AMD has pointed to a recent report from Japan's Fair Trade Commission which found that Intel had given rebates to five PC manufacturers in exchange for their promise to restrict or stop their use of AMD chips. 

The case probably won't make it into court for another year or two. In the meantime, 'the men and women of AMD will continue to drive innovation"? (according to AMD's CEO) and 'the men and women of Davis& Company's Video Game Law Group will continue to driveGTR" (according to us--watch for our press release). 
AMD's press release at  http://www.shorl.com/dekovyvebista

COPYRIGHT COULDN'T PROTECT GOLF VIDEO GAME

Incredible Technologies Inc. created a golf video game called Golden Tee. A competitor created a similar game called PGA Tour Golf. Incredible Technologies sued.

As part of the lawsuit, Incredible Technologies asked the court for a preliminary injunction to stop the competitor's game from being sold before trial. The court refused to grant the injunction, and the Federal Court of Appeals (7thCircuit) agreed. 

The court acknowledged that the two games were visually very similar. However, copyright does not protect the idea of video golf, nor does it prevent a competitor from showing golf course scenery in a golf game. In other words, in order to make a golf video game, you need to show golf clubs, golf balls, fairways and (for us) sand traps, water hazards and forests.
Coverage at http://www.shorl.com/funojugrifedro

THEY'D BETTER MOVE IT…

In an earlier posting we reported that the Japanese video game industry was considering self-regulation to avoid government imposed regulations. Those regulations already exist in Kanagawa prefecture. They will soon also exist in Ishikawa, although no games have yet been targeted by Ishikawa as being 'harmful publications"?.

Coverage at  http://www.shorl.com/dufresteletreni

JAPANESE SELF REGULATION

The Japanese video game industry (including Sony and Nintendo) is considering self-regulation to restrict sales of violent games to minors. The hope is to avoid government legislation, in light of Japan's heightened concern about video game violence (see our past coverage here ).
Coverage at  http://www.shorl.com/bojolafybraky

SONY PSP LAWSUITS ONE DOWN…

Sony was just granted a temporary injunction against UK retailer ElectricBirdLand. The injunction prohibits the retailer from selling imported PSPs, possibly until the full case is tried in court. 

The judge who granted the injunction concluded that Sony had an arguable case. Whether or not the case ultimately succeeds will be decided later.

Coverage at  http://www.shorl.com/fyresidigrema

Our prior coverage is available here .

SONY SAYS IT'S NOT SPYING ON YOU

Last week we reported that Sony said it wasn't planning on suing you if you bought a grey marketed PSP in Europe. (Click here for our coverage on grey marketing / parallel importing).

Now Sony is denying rumours that it has been asking online stores for details regarding UK customers who have purchased PSPs. Sony says it's going after businesses, not consumers, and has already sent out over 600 demand letters to retailers who are selling imported PSPs on eBay.
Coverage at  http://www.shorl.com/fomyrikisedri

PSP OWNERS WON'T GET SUED

Last week we reported that Sony has started filing lawsuits in the UK regarding the unauthorized importation and sale of PSPs. 

Sony has now offered some clarification regarding these lawsuits Sony is only interested in the grey marketers, not the PSP owners.

That's no surprise, really. Suing your customers is usually a bad idea. Some would say that suing your distributors isn't great for business either, but Sony probably has enough authorized distributors that this isn't much of a concern.

Coverage at http://www.shorl.com/fiprubrulefabri

PIRACY'S A STATE OF MIND

A recent UK study has found that people (UK people, at least) do not view downloading copyrighted material as theft.  Most people view downloading a copyrighted game as somehow different from shoplifting that same game from a store; in fact, such downloading is often considered a 'normal leisure practice"?. This study reinforces the point that attitudes towards game piracy still have to change significantly, especially as the ability to access and download pirated games continues to increase.

Coverage at http://shorl.com/hekistalihumu

SOFTWARE PATENTS ARE STILL ALIVE IN THE EU

It appears the EU will not be successful in preventing pure software from being patented in the EU. The legislative amendments that would have done this were rejected this week. 

Video game and other software patents have been a hot topic lately, especially since Sony was recently ordered to pay Immersion was $90M in for infringing Immersion's 'vibro-tacticle"? technologies, as we reported here

Coverage of the EU legislation is at http://www.shorl.com/fopruhykuhopry  

 

CANADIAN COPYRIGHT AMENDMENTS PROPOSED

The Canadian government has tabled amendments to theCopyright Actwhich address various digital and Internet-related issues.  Some of these proposed amendments are very relevant to the video game industry.  For example, one amendment gives copyright owners the right to sue someone who circumvents or removes copy protection technology, or someone who offers or provides such services. Another amendment institutes a 'notice and notice"? regime for ISPs, under which a copyright owner can notify an ISP of claimed infringement and the ISP must then forward the notice to the alleged infringer.

The Entertainment Software Association of Canada has already announced its disappointment with these proposed amendments, claiming that the bill does not go far enough to protect Canada's game developers and producers. ESAC would prefer a notice and takedown regime such as exists in the US, and would prefer to make the circumvention of copy protection a criminal offence rather than just allowing civil actions for it.

Bill C-60 at http://shorl.com/gegyfrekylyra

ESAC Reaction at http://shorl.com/dugugrygastude

SHOULD PARENTS PLAY MORE VIDEO GAMES?

A recent UK survey found that parents tend to let their children play adult-rated video games even though the parents know the games are 18-rated. Parents are aware of the games classification system, but tend to treat it as a guide rather than a definite prohibition. Apparently part of the problem is that parents don't seem to know much about the actual content of the games their children are playing. The obvious solution is to require parents to play more video games.

It's also not clear how the children are obtaining the adult-rated games. It could be that parents are buying them, again because they don't understand the significance of adult classifications. If the children are obtaining the games on their own, however, that becomes less a parenting issue and more of a game industry issue.

Coverage at http://shorl.com/bybelybrubymu

BATTLENET APPEAL

You can stop holding your breath today's the day that the Battlenet appeal gets heard in St. Louis. 

As we reported last year, Blizzard Entertainment won its lawsuit against Internet Gateway Inc. and various individuals who reverse engineered Blizzard's software and protocols to create the bnetd project, a free and unregulated alternative to Blizzard's Battle.net arena.  The court ruled that the defendants' activities violated US copyright law and also violated Blizzard's software licences and online terms of use.

Now the bnetd folks are appealing, claiming that the decision "could dramatically impact consumers' ability to customize software and electronic devices and to obtain customized tools created by others". 

It's true this is an important decision. Stay tuned for the results.
Coverage at  http://www.shorl.com/gigalapranyjo

SONY ISN'T BIG ON PSP PORN

In an earlier posting , we reported that porn will soon be available for the PSP. Sony now says it isn't impressed. The Japanese government probably won't be impressed either, given that the PSP is marketed to kids and Japan has recently taken a tough stance on violent video game content (as reported here ). Who knows more legislation could be on the horizon.   
Coverage at  http://www.shorl.com/dusoduvupofry

DVD HOSTILITIES RENEWED

We've told you before about the potential conflict between next-generation DVD formats. Last time this came up the parties were negotiating with respect to a single standard incorporating the best aspects of both competing formats (Sony's Blu-Ray vs. Toshiba's HD-DVD). Sadly, these negotiations have ended without agreement. Be prepared for two formats of next-gen DVDs hitting markets next winter, with all the confusion and inconvenience to consumers that entails.

Coverage at http://shorl.com/jarijibrakosti

SONY SUES UK RETAILERS

Sony recently sued several retailers who were selling imported PSPs in the UK. Sony's not happy because the PSP hasn't been officially released in Europe yet.

These unauthorized sales are called 'parallel importing"? or 'grey marketing"?, and each country deals with them differently. 

The starting point is usually the doctrine of 'first sale"? or 'exhaustion"?. Under this doctrine, if the products are genuine and were sold by the manufacturer (or with the consent of the manufacturer) in another country, then the manufacturer is out of luck. However, (at least in Canada) the manufacturer can stop the importation if the imported products are materially different from the products sold in Canada.  

Fortunately for Sony, it appears that UK law may be less restrictive manufacturers might be able to stop any grey marketing if the products were originally sold in countriesoutsidethe EU (although EU law doesn't appear to provide any protection if the imported products were originally sold in one of the other countries insidethe EU).     

Coverage at  http://www.shorl.com/fejafekufube

NVIDIA LICENCE SIGNALS SOME XBOX BACKWARD COMPATIBILITY

Microsoft has licensed NVIDIA technology to allow some backwards compatibility in the Xbox 360. The licence is necessary because the ATI chipset isn't compatible with current Xbox games, so the Xbox 360 will need to emulate NVIDIA's chip. However, it's still not clear whether all Xbox games will be playable on the Xbox 360.

Coverage at  http://www.shorl.com/fosybrakugrivy

MMO CAMPAIGN CONTINUES IN CHINA

The Chinese Ministry of Culture is continuing its campaign to remove offensive content from online games. The campaign is focussed primarily on pornography, violence and gambling.
Coverage here  http://www.shorl.com/dohegrybakiho

PRODUCT LIABILITY IS HOT TOPIC FOR XBOX

In an earlier post , we reported that Microsoft had recalled 14 million power cables because they were a potential smoke or fire hazard. Turns out the problem is bigger than Microsoft originally thought Microsoft is now advising anyone whose XBOX was manufactured before January 14, 2005, to contact Microsoft to see if their cord should be replaced.

Coverage at  http://www.shorl.com/bufrarutrafrystu

AUSSIE GAME RATINGS GET COLOURFUL

Australia has introduced new colourful game rating symbols that must be used in Australia. Although the colours are new, the highest rating available for video games is still '15+"?. This means that games which contain sex, drugs and significant violence cannot be rated (and therefore cannot be sold) in Australia. 
A summary of the requirements is available here  http://www.shorl.com/fadivifigreny

HASBRO GIVE AND TAKE

Five years after licensing the digital gaming rights to various toy brands to Infogrames in 2005, Hasbro has now re-acquired them in a $65 million deal. In connection with this deal, Hasbro re-licensed 10 popular franchises, including Dungeons and Dragons and Monopoly, back to Infogrames.

Coverage at http://www.shorl.com/gobrepepebromi

GAMES KEEP TALKING

The Screen Actors Guild and the American Federation of Television and Radio Artists have agreed to a deal with video game publishers, ending the threat of a strike by video game voice actors. The new 3 and a half year deal includes a 36% pay raise for voice actors and improved benefits, but the issue of residual payments was dropped to facilitate the deal. The deal has yet to be ratified by the unions.

Coverage at http://www.shorl.com/gokisihufrymo

Previous coverage here

REAL-LIFE KILLING OVER VIRTUAL SWORD

A disturbing episode in China highlights how seriously some people take on-line games. Qiu Chengwei spent hours playing Legend of Mir III and eventually obtained one of the game's most powerful weapons, the dragon sabre. Qiu then lent the virtual sabre to Zhu Caoyuan, who proceeded to sell it for real money. Chinese police did nothing when Qiu complained, taking the position that the virtual sword was not property that could be stolen. Qiu eventually attacked and killed Zhu. He has been sentenced to death for murder, although the Chinese court has suspended that sentence for two years and the sentence may eventually be reduced to prison time.

This episode raises many questions, including the treatment of virtual "property" and the social consequences of excessive on-line gaming.

Coverage at http://shorl.com/fefustustidremu

And at http://shorl.com/babuhufryfrake

STREET FIGHTER COMES TO KANAGAWA

Capcom, the Japanese publisher of Grand Theft Auto III, has publicly come out against the Kanagawa Prefect's recent decision to ban the sale of the game to minors. Capcom's statement posits a number of reasons why Kanagawa should not have placed restrictions on GTAIII, ranging from a lack of negotiation and precedent to freedom of expression, but concludes with a promise of more self-regulation from Capcom in the future. Capcom is also considering legal action in this matter.

Full coverage at http://www.shorl.com/hemydrosabesty

Our previous coverage here  and here .

 

A HANDFUL OF LAWSUIT

Developer Handheld Games has filed suit in Seattle against Gizmondo Europe and Tiger Telematics for breach of contract. HHG alleges that it entered into an agreement to develop a video game for Gizmondo, but that Gizmondo has not provided the necessary licences and software development kits and equipment. HHG also claims that Gizmondo has begun developing the game with another developer.

Coverage at http://shorl.com/dagaprelyjoji

 

GET PERMISSION TO INCLUDE MUSIC SAMPLES IN YOUR GAMES

The 6th Circuit Court of Appeals in the US has confirmed that sampling even three notes from a sound recording can violate US copyright law. 

The case involved two record companies and two publishers who sued 800 defendants for using samples without permission in various rap recordings. The court ruled that the samples (even the short ones) were valuable, which is clear from the fact that the defendants sampled them and used them in other recordings. In the court's words 'Get a license or do not sample."?

Case at http://www.shorl.com/buralynylene

SLIPPERY SLOPE FOR VOICE ACTORS?

As previously discussed , the Screen Actors Guild is in discussions with video game makers about the proper remuneration for voice actors in video games. The talks have stalled again, and on June 6, 2005 the SAG will announce whether there will be a strike.

The sticking point is whether voice actors should share profits in successful games. This simple-seeming question actually opens a large can of worms "? who should be able to share in video game profits? The video game makers claim that allowing voice actors to share in profits would cause other parties in the production chain (e.g., programmers and animators) to demand the same. And with the costs of making video games constantly rising, game producers are reluctant to make any concessions that will cut into their profits.

On the flip side, the movie and television industries routinely use profit-sharing schemes so that various participants receive bonuses if their product sells well. The video game companies say that their industry is different, but that claim is questionable given the monstrous successes of recent video games and the increasing number of links between video games and movies.

In any event, keep an eye on this stand-off it will potentially define how video game contracts work in the foreseeable future.

Coverage at  http://shorl.com/gubastidrytradi

PSP - PLAYSTATION PORNOGRAPHY?

This summer, adult publishers Glay'z and H.M.P. will release a total of 8 movies on Sony's UMD disc format, playable on the PSP. Though every PSP game must be approved by Sony prior to publication, Sony has decided that it will not seek to control or censor movie content for its handheld.

Full coverage at http://www.shorl.com/daperypufruba

NO NEW LAW FOR CALIFORNIA FOR NOW

California's video game violence legislation has been shelved for now, due to lack of support. However, the Bill will likely be reconsidered in the near future.  As discussed in an earlier posting , the Girl Scouts will not be pleased. 
Coverage at  http://www.shorl.com/bevujuryfregi

THERE'S A STORM BREWING ON BATTLE.NET

Blizzard has shut down over 50,000 Battle.net accounts for cheating. It also suspended over 8,000 CD keys and permanently banned over 3,000 CD keys.

Cheating is no fun for gamers, so it's obviously bad for business. It's also an area of potential liability for gaming companies who are easier to sue than the cheaters.
Coverage at http://www.shorl.com/hyjastegrifuha

PROTECTING THE PSP IN EUROPE

The PSP, Sony's handheld answer to the Nintendo GameBoy and DS, has not yet launched in Europe and has had its launch date delayed more than once. ElectricBirdLand is one of the online stores importing Japanese PSPs to Europe for retail sale, prompting Sony to respond this past April with cease and desist orders. However, according to Dan Morelle, the managing director of ElectricBirdLand, Sony may not have the European intellectual property protection it needs to stop importers. Morelle reports that 'PSP"? is used by UK firm Owtanet Ltd for their 'Publishing, Shopping and Profiles"? software, and Owtanet claims to have registered a trademark in PSP in 2000, and that legal proceedings are currently underway. Furthermore, Morelle claims that Advanced Micro Devices (AMD) is contesting Sony's use of 'UMD"? to describe its optical discs, on the grounds that it is confusingly similar to 'AMD"?. Morelle states that ElectricBirdLand will continue to sell PSPs in Europe until Sony can establish how it is being harmed by import sales.

Full coverage at http://www.shorl.com/budadadrobyki

MASTERS OF LIBEL?

Random House, the publisher of David Kushner's 'Masters of Doom"? is being sued for libel by Michael Wilson, the former Chief Operating Officer of Ion Storm. Mr. Wilson is alleging that Masters of Doom, which recounts the creation of id Software and FPS masterpiece DOOM,  contains libellous statements against him, specifically that he improperly purchased a BMW with company funds. In response, Random House has stated that book has been praised for its meticulous research, and that it expects Mr. Wilson's claim to be without legal merit and factually baseless.

Full coverage at http://www.shorl.com/fetidygenyfo

LOUISIANA GIVES GAME DEVELOPERS SOME CREDIT

The Louisiana Senate has a passed a bill which will grant tax credits to video game and interactive entertainment companies who establish a business in the state.  Bill 341 gives a credit of 10 percent of state income tax for companies investing between $300,000 and $8 million in a state-based business; higher investments will get a 15 percent credit.

Louisiana created a similar scheme for the movie industry in 2004 and saw some immediate success, as several movies were made in the state. Whether tax credits for video game developers will have the same success will be seen once the bill becomes law.

Coverage at http://shorl.com/gejagryjyperu

Bill Information at http://shorl.com/digragrulemuky

MINOR PROBLEM FOR GTA III

Kanagawa prefecture, just south of Tokyo, has decided to label Grand Theft Auto III as 'harmful"?, which means the game can't be sold or rented to minors. This is the first time Japan has placed restrictions on a game due to violence.  We previously discussed this issue but at that time the identity of the game in question was unknown.  Who would have guessed it was a Grand Theft Auto game causing all the trouble?! 

Coverage at  http://www.shorl.com/gikivoribubo

ONTARIO NO FILM CENSORSHIP, BUT MANDATORY GAME RATINGS

A new law passed by the Ontario government eliminates censorship for films while retaining the film classification system. The law also imposes mandatory video game ratings and sets fines for retailers who rent or sell adult games to kids.  The ratings system follows the system currently used by the industry. 

Coverage at http://www.shorl.com/bybrygovutrake

OH THE SUSPENSE, THE DRAMA!

Illinois' bill banning the sale of adult video games to minors has rounded third and is coming home. The bill was passed by the house, and now goes back to the Governor who proposed it. So it seems there's no question that the bill will become law; the only question is whether the courts will consider it to be unconstitutional. And for some, like the folks at gamepolitics.com, this isn't much of a question either.
Coverage at  http://www.shorl.com/bypohografripi

Consequences Of Nakeder Tecmo Games

May 18 was a sad day for video game lawyers, because on that day US Federal Judge Charles Kocoras permitted a settlement of a case between Tecmo and video game modders. NinjaHacker.net, whose webmasters Mike Greiling and Will Glynn were named as defendants in the lawsuit initiated by Tecmo, offered a community to create and distribute mods for Tecmo games such as Dead or Alive 3 and Dead or Alive Xtreme Beach Volleyball. Tecmo, famous for making electronic near-naked characters fight and... play extreme beach volleyball, argued that NinjaHacker.net's mods violated US intellectual property and unfair competition laws, and of course the DMCA. Now that the case has settled, we may never know the legal accuracy of Tecmo's claims.  As video game lawyers in search of truth and justice, we can thus only hope that this settlement collapses and everyone involved is ruined.

Full coverage at http://www.shorl.com/fugesolatusta

Hate The Game, Not The Playa

The Kanagawa prefectural government in Japan is planning to submit a proposal to the prefecture's Child Welfare Council which would designate a certain violent video game as 'harmful literature"?. If brought into force, this designation would prohibit the sale of the game to children under the age of 18, and would require retailers to separately display it away from the prying eyes of children. Sources do not disclose which video game is up for the ban; if successful, the mysterious game would be the first designated as 'harmful"? in Japan.

Full coverage at http://www.shorl.com/givypugrisavu

DO EXCLUSIVE LICENCES VIOLATE US ANTITRUST LAW?

Maybe.

For many years, American Needle was a non-exclusive licensee of the NFL and was permitted to sell hats bearing the names and logos of NFL teams. But recently, the NFL stopped granting non-exclusive licences, opting instead to give Reebok an exclusive licence. (Sound familiar?) So American Needle sued the NFL, Reebok and other related parties, claiming that the exclusive licence violates US antitrust law. 

The NFL and the other defendants applied to dismiss the lawsuit, claiming that there were no legal grounds to proceed with the lawsuit. The court disagreed and allowed the lawsuit to proceed.

EA is probably following this case with great interest, given its recent acquisition of several long-term exclusive licences with the NFL, AFL and ESPN. 

Coverage at  http://www.shorl.com/hirevagesovi

 

PLUMBER V. PIRATES

A new report from Nintendo of America describes the company's various anti-piracy efforts in the first quarter of 2005. Nintendo, which is ramping up its anti-piracy efforts, proudly reports on how many counterfeited products were confiscated around the world (approximately 178,287), how many on-line auctions for counterfeit products were shut down (approximately 25,299), and how many criminal actiosn and investigations are ongoing (about 81).

The report also discusses various significant piracy cases, including the start of a trial in Taiwan against Eric Lo and his company Revotek (whom Nintendo claims has designed and distributed in excess of 35 million chips used in counterfeit Nintendo games); the addition of a Taiwanese semiconductor company to existing litigation against two US companies for distributing counterfeit devices; and obtaining a $5 million judgment (plus interest) in Hong Kong against defendants who sold the Flash Advance Linker (which allows Game Boy software products to be copied).

Coverage at http://shorl.com/geranesadygu

PLAY-IT AGAIN DO THE SEARCHES BEFORE YOU REBRAND

In an earlier posting we reported that Mobile games publisher Digital Bridges recently rebranded itself as 'I-Play"?.  Unfortunately, the new name and logo are similar to the name and logo of rival publisher Play it. 

Play It sued and was recently granted an injunction which temporarily prevents I-Play from using its new logo. The full trial is scheduled for July and will determine whether the injunction will be permanent and whether I-Play will be required to pay damages to Play It. 

It's not clear whether Digital Bridges conducted any searches before rebranding, but it's obviously important to do comprehensive searches before adopting any new mark.  Just ask any intellectual property or video game lawyer the cost of these searches is always less than the cost of defending a lawsuit, paying damages for infringement, re-branding (again) and losing the goodwill in your brand.

Coverage at  http://www.shorl.com/hogruludefyhe  

 

ANOTHER DAY, ANOTHER LAW


More provinces and states are jumping on the violent-video-game-law bandwagon. Manitoba's new law is set to take effect next month. It follows Nova Scotia's legislation (which took effect in April), and Ontario's legislation (which took effect in March). 

This has been a hot topic in the US too, with video game laws popping up in states such as Michigan, California, Illinois and North Carolina.

Coverage at  http://www.shorl.com/gimigrafrygepre

 

WHOLE LOTTA SHAKIN' GOIN' ON

Immersion has settled its patent infringement dispute with Radica over Immersion's patented force feedback technology. The fact that Immersion was awarded $90M in damages against Sony for infringing the patent probably helped move the negotiations along.

Coverage here  http://www.shorl.com/fydybeprajofro

PSP PIRATES “WE'RE SO S-M-R-T SMART!!!”

Pirates recently released unauthorized copies of PSP games onto the Internet. However, the PSP has great copy protection technology there aren't any UMD burners yet, so the pirated games can't be played on the PSP. There's a chance the games could eventually be played from a memory stick, but Sony has taken steps to prevent this.

Coverage at  http://www.shorl.com/dinegryfepreva

BEWARE VIDEO GAME INJURIES

A recent CBC article reminds us that the mere act of playing a video game (any video game) can cause actual damage to your neck, back, hands and tendons. Playing games for long periods can result in what is known as repetitive strain injury or carpal tunnel syndrome, due in part to the awkward, unergonomic positions players tend to assume and the repetitive motions involved in playing games.

Players avoid such problems by taking the occasional break to stretch and walk around "? something that sounds simple in theory, but as all gamers who have had hours vanish on them while playing games know, is not always easily put into practice.  We also recommend adequate warm-up and cool-down exercises and stretching before and after every gaming session.

The article also mentions a lawsuit where Nintendo was successfully sued by a gamer who developed carpal tunnel syndrome.

CBC article at http://shorl.com/fafrysohodrugre

THE GIRL SCOUTS PREVAIL

The California Assembly Arts Committee bowed to public pressure and stopped squashing the girl scouts. You can read about our previous coverage on the girl scout sqashing here .

Yesterday the Committee reconsidered the legislation (which would ban the sale of violent video games to minors) and passed it, which means it now goes before the full Assembly. Aaaaarnold declined to comment. 

Coverage here  http://www.shorl.com/dovytesumybre

ILLINOIS GAME LEGISLATION KEEPS TRUCKING

The Safe Games Illinois Act (which we have reported on before ) is a step closer to reality, having recently been passed by the state's Senate Housing and Community Affairs Committee. The bill now goes to the state Senate for consideration.

The proposed legislation will allow the government of Illinois to set its own ratings on games, and will create penalties (as yet undetermined) for retailers who sell proscribed games to minors.

Coverage at  http://shorl.com/difipadapyfo

VIDEO GAME INDUSTRY SQUASHES GIRL SCOUTS!

California Assembly Bill 450 aims to ban the sale of violent video games to children. The bill failed to pass through committee yesterday, and the author of the bill, Assemblyman Leland Yee, was clearly disappointed with the result. In his words 'Today, the financial influence of the $10 billion video game industry was able to squash the efforts of the Girl Scouts, PTAs, and our health professionals."? The bill gets another chance later this week.

Coverage at  http://www.shorl.com/bastitrebrogradi

NO MORE GRAVY

After nearly three years of court battles, Valve and Sierra have settled their dispute regarding the distribution of Valve's games. Valve claimed that Sierra had been unlawfully distributing Valve's games through cybercafes. Valve also claimed damages from Sierra's parent, Vivendi, for delaying the release of Counter-Strike Condition Zero. 

As a result of the settlement (a) Vivendi will no longer distribute packaged versions of Valve's games, (b) Vivendi will notify former licensees that only Valve is authorized to distribute Valve games through cybercafes, and (c) all former licences granted by Vivendi to cybercafes are now void.

Coverage at  http://www.shorl.com/jefehorijuma

PC = PARENTAL CONTROL?

Everyone knows about the V-Chip, which gives parents some control over their children's viewing habits. A new program from SMARTGuard Software aims to do the same thing for PCs. The program, called WallFly , monitors video game use and can block games from being run (based on their ESRB ratings an sub-categories); it also lets parents establish set periods where games can (or cannot) be played and set up weekly time budgets for gaming (which raises the problematic scenario of having your weekly budget expire just before you finish a level "? how frustrating would that be?).

This program acknowledges a point that some commentators and many politicians miss, namely that parents should take responsibility for what games their children are playing. Of course, parents who don't bother to check what their children are playing are unlikely to buy a game-monitoring program in the first place. And WallFly only applies to PC games, not console games, and so still leaves a significant portion of the games market uncovered. Still, tools like this are a way to address video game violence and children without resorting to legislation.

Coverage at  http://shorl.com/bestipefrefaka

XBOX TRADE-MARK SECRECY

Microsoft is scheduled to unveil its new logo for the XBOX 360 on May 13. There is already plenty of speculation about what the logo will look like. For example, check out the coverage here  http://www.shorl.com/dejypubrugrastu

This story is interesting from a trade-marks law perspective. To protect the mark nationally (in the US, Canada, or elsewhere), Microsoft must file an application to register the mark. The sooner Microsoft does this, the less chance someone else will file a similar application first.

We conducted a brief search of the Canadian and US Trade-marks Offices but didn't find any application for the new logo. Maybe Microsoft used a subsidiary to file the application so it would be harder to find. Or maybe Microsoft was able to convince the USPTO to keep the application confidential for now. 

Or maybe Microsoft is just taking its chances and hoping nobody will try to file a registration first. This wouldn't be completely unreasonable because Microsoft has already protected the 'XBOX"? word mark, and Microsoft probably owns the copyright in the new logo too. So even if someone managed to file a trade-mark application first, there's probably little chance that he or she could actually exploit the application. And, of course, they're Microsoft"? right?

 

The Courtship Of EIDOS Ends Without A Kiss



After months of competition, Elevation Partners has withdrawn from bidding for EIDOS Interactive, leaving SCi alone in the buying battle. EIDOS's shareholders are expected to vote on SCi's proposal on May 13, 2005. See previous coverage here .

Coverage at http://www.shorl.com/gepidrilibahi  

Sony Folds Like Cheap Rug Under Hot Bangladeshi Sun

Sony has conceded to Bangladeshi demands regarding its upcoming military shooter, 'SOCOM 3"?. The latest instalment of SOCOM, set for release later this year, allegedly included Bangladesh as an in-game setting, but the extent to which the country was involved in the game is not clear. Apparently, the government of Bangladesh believed that the game portrayed the country as harbouring or supporting terrorist groups, and threatened to sue Sony if all references to Bangladesh were not removed from the game. Sony has publicly stated that they complying with the government of Bangladesh's demands.

Coverage at http://www.shorl.com/dojyprumufrulu

North Carolina Cleanin' Up The Streets

North Carolina's Senate Bill 2 has obtained state senate approval; if it is also passed by the state house and the governor, it could be North Carolina law as early as December, 2005. Bill 2 governs the sale and rental of video games, and prohibits stores from selling or renting violent or sexually explicit games to minors.  The bill also seeks to force stores to keep such games out of the reach and view of minors, and to post information on the ESRB ratings system.  Games likely affected include Grand Theft Auto, Leisure Suit Larry, and the Guy Game.

See the Bill at http://www.shorl.com/bamujekimedru

Coverage at http://www.shorl.com/dihekypypuvi

DISC DETENTE?

We reported last year about the looming war over next-generation DVD formats "? with Sony and Blu-Ray on one side and Toshiba's HD-DVD on the other. Well, take hope various reports claim that the combatants are negotiating towards a single standard incorporating the best aspects of both formats. The status of these negotiations is another matter "? some reports have Sony and Toshiba close to a deal, while others have them stalled again.

Currently the two rivals have split the market almost evenly, but recognize that maintaining different formats is bad for everyone in the long run. Whether this mindset will indeed result in a single DVD standard isn't yet clear, but the negotiations give us some hope.

It's also not clear what will happen to Sony's PlayStation3 in the interim. Sony announced last year that its next-generation game console would use Blu-Ray technology, but presumably that would change if the negotiations are fruitful.

Coverage at http://shorl.com/dyvetugikobi

NO LOST VOICES -- YET

A recent post mentioned that the actors who provide voices in video games may soon be on strike, and that the old contract expired last Friday, April 15.  Gamerswill be relieved to know there has been a short reprieve the parties (the Screen Actors Guild and the American Federation of Television and Radio Artists, plus various large game publishers) entered a new agreement today that extends the contract deadline to May 13 (a Friday "? apparently the parties aren't superstitious).

Coverage at http://shorl.com/gytopogomyma

KEEP APRIL 21ST CLEAR ON YOUR CALENDAR


In an earlier posting , we reported that Play-It Ltd. had sought legal advice regarding Digital Bridges' decision to rebrand itself as 'I-Play"? and adopt a logo which is similar to Play-It's logo. 

The result of that advice is a lawsuit (no surprise there) and an application for an interim injunction to stop I-Play from using its new name and logo. That application is scheduled to be heard on April 21.

Coverage at  http://www.shorl.com/dutomidygebu

Finland Or The FBI?

When the law stops working, it's time to create a dummy hash file.

Finnish Company Viralg Oy claims to have engineered digital rights protection software that generates such a file, which can then be inserted into a P2P network to trick downloaders into accepting garbage data instead of the copyrighted content they so greedily desire. As this garbage data spreads across the P2P network, less original content is distributed and more finished downloads are corrupted, making the file sharing process nigh-impossible. Whether Viralg's creation will significantly prevent piracy - or merely cause a short-lived annoyance to the grog-drinking yar-shouting masses - remains to be seen.

Coverage at http://www.shorl.com/garobynufusta and http://www.shorl.com/hytrahodresyla

Gamestop To Acquire Eb Games

A few years ago, PC game boxes were shrunk and standardized so game stores could cram more of them onto their tiny shelves.  But today, one game retailer has grown so large that its inventory could be sold on punch cards stuffed in refrigerator boxes and still have enough room for copies of Steel Battalion for everyone.

America's largest video game retailers, GameStop Corp. and Electronic Boutique Holdings Corp., have signed a Definitive Merger Agreement under which GameStop will give EB shareholders $38.15 in cash and 0.78795 of a GameStop Class A common share in exchange for each share of Electronics Boutique. This consideration represents approximately $55.18 per EB share, which is a 34.2% premium to the company's closing price last Friday.

By 2006,GameStop will be the world's largest video game retailer, with over 3,800 stores - and thousands of unsold copies of Daikatana - worldwide.

Coverage at  http://www.shorl.com/jehatatidrily

NINTENDO “THE FBI ROCKS!”

OK, so Nintendo didn't really say that. What they really said was 'Nintendo applauds the actions taken by the FBI. U.S. law enforcement authorities have played an instrumental role in attacking piracy in the U.S. and abroad"?".

We still prefer our version.

Anyway, these accolades came after the FBI seized thousands of pirated games including Donkey Kong, Mario Bros. and Duck Hunt.

Coverage at  http://www.shorl.com/bidestodropyru

To learn more about hiring the FBI for your personal pirating problem, see our coverage here

NINTENDO CO. VS. NINTENDO PIRATES

The FBI busted video game pirates trying to distribute a cache of more than 60,000 illegal Nintendo games, which were seized by the authorities in raids in New York and New Jersey. Perhaps even more interesting than the arrests, the Associated Press is apparently fuzzy on the distinction between video games and video game consoles - see for yourself at "Full coverage", below.

Full coverage at http://www.shorl.com/gilidrystedusa

THE ONLY THING BETTER THAN A PORTABLE VIDEO GAME...

...is apparently a portable video game with ads. The Tiger Telematics' portable video game console "Gizmondo," which is expected to be released in North America later this year, has developed an interesting approach to keeping the unit affordable. Up to three times a day, a Gizmondo will play an ad beamed to it by Tiger and which is tailored to each individual user. Our prediction? Lots of ads for video games.

Full coverage at http://www.shorl.com/jefysyprusute

YOU TOO CAN HIRE THE FBI

They're tough. They're smart. They have cool earpieces and sunglasses. They pack heat. And they can get secret court orders under the USA PATRIOT Act.

No, they're not your friendly neighbourhood video game lawyers. (We wish.) They're the FBI. And they're working for you!!! Or at least some of you.

Games publisherIn The Deepwas ticked-off at publisherTake Two Interactivebecause In The Deep thought Take Two was selling illegal copies of one of In The Deep's games. 

In The Deep didn't have the cash to hire one of those fancy US video game attorneys, so they complained to the FBI instead. 
Coverage at  http://www.shorl.com/feprodrudyrajy

VOICES IN THE WILDERNESS?

As if labour problems in the hockey world weren't enough!  US video game voice actors, who are represented by two different unions (the Screen Actors Guild and the American Federation of Television and Radio Artists), may be ready to strike. The current contract between the two unions and the major video game publishers expires on Friday, and if negotiators can't get a new agreement in place a strike could be imminent.

Apparently a key issue is that of residuals "? the current contract does not allow voice actors to share in the profits of a successful game, but instead sets out a fixed payment scale. Given the blockbuster potential of video games (Halo2, anyone?), the unions are obviously interested in tying some remuneration to game profits. This contract negotiation could mark a new industry mindset, where more parties start to jostle for pieces of the newly-lucrative video game pie.

More and more well-known actors are contributing their voices to video games "? GTA San Andreas includes the voices of Samuel L. Jackson, James Woods and Peter Fonda; EA's Godfather game includes the voices of original cast members Marlon Brando, James Caan and Robert Duvall. And, as mentioned in a recent post , Sean Connery is lending his Scottish brogue to an upcoming James Bond game.

Coverage at http://shorl.com/bobyjahedohe

NO NARC DOWN UNDER

The Australian Office of Film and Literature Classification has refused to classify NARC, the VIS Interactive game which allows players to be good cops or take drugs and be bad cops. Accordingly, the game won't be released in Australia.

Coverage at  http://www.shorl.com/dystojopuguna

HOW TO GET AHEAD IN IN-GAME ADVERTISING

Massive Inc., the company that is taking the lead in in-game advertising, has just announced its first group of advertisers and brands. The list includes Verizon and RealNetworks (previously announced), as well as Universal Music Group, Intel, T-Mobile, Dunkin' Donuts, Nestle, Coke, Paramount, and Honda Element. Massive intends to have 40 games receiving its advertising stream by the end of 2005.

Massive's in-game advertising model moves beyond mere product placement to dynamic streamed advertising which changes over time and can be targeted based on geography, time of day, etc. Massive's CEO believes that this sort of in-game advertising is a huge potential market because a key demographic, namely 18 to 34-year old males, is shifting to video games as their primary source of entertainment (apparently the majority of males in this cohort spend about 20 hours a week playing games). The model is also said to add realism to games, and apparently a recent Harvard Business School study found that in-game advertising improved the gaming experience for a large majority of gamers. Combine this with increased per-unit profits for publishers, and Massive thinks it has a no-lose proposition on its hands.

Coverage at http://shorl.com/desysobrufrugro

Interview with Massive Inc. CEO Mitch Davis at http://shorl.com/fisyprokogafi

EA WINS LICENCE-EATING CONTEST

Electronic Arts has shored up the long-term exclusive video game rights to yet another major sports licence, adding to its impressive roster which includes the NFL, Arena Football League, and ESPN.This time, EA has penned a six-year deal with the Collegiate Licensing Company for the exclusive video game rights to NCAA football. With this move, EA has effectively locked down "football" - not only for the tail end of current consoles, but for most, if not all, of the lifespans of next generation consoles as well.Although critics have argued that EA's long-term exclusives will stifle competition and lead to stagnation in EA's titles, these pundits should remember that the other football developers, including Take-Two Interactive, are still free to create games with all those generic team and player names that nobody else wants to play with.Full coverage at http://shorl.com/debolumustydy

THE PSP HAS BEEN HACKED!

In almost no time, the new PSP has been hacked to allow web browsing additions, IM and TiVo playback abilities (among other things).

Hacks such as these often violate copyright law.  They might also be a breach of contract  some companies specifically prohibit hacking in their End User Licence Agreements. 

But regardless of whether Sony can legally stop the hackers, there's a business decision to be made regarding whether Sony should even try. 

Sony hasn't had much luck cracking down on hackers in the past. For example, it once sued one of its customers for hacking Aibo, the company's robotic dog toy. This strategy backfired when fans started boycotting the product.

The other downside, of course, is that hacking can raise interest in a product and help promote product sales. 

Coverage at  http://www.shorl.com/gomytrejabrigri

IBM SLOW ROASTING ITS GOLDEN GOOSE?

Jim Stallings, vice-president intellectual property and standards, revealed IBM's position on the patent process, particularly that of the United States. Stallings alleges that due to the dramatic increase in the number of filings of patents around the world, examiners' ability to inspect each has been reduced, resulting in a bias toward granting patents and ultimately leading companies to hoard patents or to seek protection for unoriginal works. Stallings also rightly claims that current intellectual property law is not properly constructed to govern the fruits of development communities. Consequently IBM, with its more than 10,000 patent applications in the USA alone, and which was granted 3,248 patents in 2004, is calling for a more stringent patent process.

Patents, of course, are big business in the video game industry.  Recent examples include the award of $90 million against Sony for infringing vibro-tactile patents (see our coverage here ) and Yahoo!'s lawsuit against Xfire regarding online chat applications for games (see our coverage here ).
Coverage of the IBM story athttp://www.shorl.com/guvomadrejadu

DO THE SEARCHES BEFORE YOU REBRAND!!!

Mobile games publisher Digital Bridges recently rebranded itself as 'I-Play"?. Unfortunately, the new name and logo are similar to the name and logo of rival publisher Play it. Apparently each company's IP lawyer is getting warmed up for an impending battle.

It's not clear whether Digital Bridges conducted any searches before rebranding, but it's obviously important to do comprehensive searches before adopting any new mark. At the very least, these searches should review registered trade-marks and pending trade-mark applications in all countries where you intend to launch the brand. But it's also a good idea to conduct broader searches of corporate registries, trade publications, phone directories, domain names and the Web to see what else is out there.

The cost of these searches is always less than the cost of defending a lawsuit, paying damages for infringement, re-branding (again) and losing the goodwill in your brand.
Coverage of the I-Play matter is available here  http://www.shorl.com/dadravegristeli

ARE THE KIDS ALL RIGHT?

A local radio station from Gainesville, Florida, reports that a 14-year-old Gainesville boy has been arrested and charged with aggravated child abuse for severely beating his 2-year-old cousin. Apparently investigators believe that the aggressor was mimicking wrestling moves from EA's 'Def Jam Fight for New York"?, which the two children used to play together (the game is rated M, for users 17 and older).

Whether the connection between the real-world violence and the video game will be pursued remains to be seen. No doubt it will receive media attention, regardless of whether any connection is established. As always, though, media reports like this leave more questions than answers. Was it the video game that caused the violence? Did the video game contribute to the violence? Did the children also watch pro wrestling? Or the Power Rangers? How did a 14-year-old obtain an M-rated game? What was a 2-year-old doing playing video games like this?  The boy's (it's not clear which boy's) grandmother has been arrested and charged with neglect for failing to seek medical treatment for the injured child. Should there be similar charges for allowing children to play violent games, in the way people may be charged for leaving weapons in places where they are accessible to curious children?

Coverage at http://shorl.com/bemorusyvygo

PLAYSTATION FOR DESSERT

You can't have any PlayStation if you don't eat yer meat! How can you have any PlayStation if you don't eat yer meat???

Sony was just awarded US patent #6,729,337 for a method of inducing sensory experiences by sending ultrasonic pulses to the brain. In addition to allowing gamers to 'smell"?, 'touch"? and 'taste"? their games, the method might enable blind or deaf gamers to play too.

Sadly, the invention will do nothing to improve the skills of guys like us whocansee, although you wouldn't know it if you watched us play Halo 2... 

Coverage at  http://www.shorl.com/fudofotifrely

Patent at http://www.shorl.com/bogefabudrudry

CUSTOMIZED PSPs ALREADY?

Sony's new PSP has barely been released, and already various modifications are springing up that extend the handheld's capabilities. Various hacks seen thus far include ones that allow web browsing and online chatting and one that allows Tivo-recorded TV shows to be transferred to the PSP. Other game-related hacks let PSP users play all games wirelessly over the Internet and play multiplayer games with only one copy of the game.

Hacks and mods are nothing new, of course, but the rapidity with which eager modders have acted on the PSP is impressive.

Coverage at  http://shorl.com/dudifygrygryri

CONNERY SAYS “YESH” TO BOND GAME

Actor Sean Connery is providing the voice for EA's latest James Bond game, From Russia With Love. The game will also feature the likeness of Connery as he was at the age of 33 when the film was made (he is now 74).

Using celebrity voices and likenesses in video games is nothing new (PC gamers may recall Mark Hamill's voice in the later Wing Commander games, for example). However, that Connery is willing and eager to participate in video games when his film career is still going strong indicates, once again, the emergence of video games as a dominant player in the entertainment industry.

Coverage at  http://shorl.com/fusestotranypru

WWE CONTINUES TO BRING THE PAIN

WWE sued publisher THQ and its joint-venture partner Jakks Pacific Inc. last fall . Early this week, WWE came off the top rope to body slam THQ CEO Brian Farrell by adding him as an individual defendant.

The lawsuit involves claims of commercial bribery connected to WWE merchandising licences, and WWE seeks to nullify its video game licence with THQ and Jakks.

THQ and Jakks have indicated that the addition of Farrell as a defendant does not change their position on the proceeding, and that they are continuing to operate under the existing licence.

Coverage at http://shorl.com/daritrabohytu

Hey Sam… Holster The Gun And Pick Up An N-GAGE!

We just learned that Ubisoft signed an advertising deal with several companies including Nokia. Under the agreement, Ubisoft agreed to place the companies' products in Ubisoft's latest release, Splinter Cell Chaos Theory.

In-game advertising is really catching on. The NBA , Pizza Hut and Reebok have all signed big contracts to advertise their products in newly released games.  We thought about jumping on the bandwagon and adding a "dial a video game lawyer" feature to the next hot release, but we're a little worried about what the modding community might do to us... 

Coverage at  http://www.shorl.com/dasidubefrapu

A REASON NOT TO SHARE?

EA announced last week that it expects its current quarter's revenues to be well below (maybe as much as $200 million below) earlier estimates. EA's share price immediately dropped more than $10, and other game companies also saw their share prices decline.  EA attributes these losses to the unexpected console hardware shortages that occurred in late 2004.

What does this have to do with law, you ask? Well, a US law firm has since filed a class action lawsuit alleging that EA issued false or misleading public statements about its expected financial performance. Whether this class action suit will be proceed remains to be seen, but it reminds us that financial troubles and legal troubles often go hand in hand.

Coverage at http://shorl.com/fepranatigahu

And at http://shorl.com/finihubrupylu

BSA BS?

The Business Software Alliance (BSA) has withdrawn its lawsuit against Project Entropia creator MindArk Studios.  The lawsuit alleged that MindArk used unlicensed versions of Microsoft, Adobe, Macromedia and Autodesk software to develop Project Entropia. It turns out the software was licensed afterall. (Oops.)

Predictably, the dispute doesn't end there. MindArk is preparing a countersuit claiming damages caused by the original lawsuit.
Coverage at  http://www.shorl.com/jelitojugajo

WON'T SOMEONE THINK OF THE CHILDREN?

New York Senator Hillary Clinton has added her voice to those who oppose violent video games, and has specifically mentioned the Grand Theft Auto series as a major threat to morality. Clinton has joined with some Republican senators to put pressure on Congress to investigate (to the tune of $90 million) the effects of games and other electronic media on children.

Senator Clinton is reportedly seeking the Democratic presidential nomination for 2008, and has taken some right-wing positions on domestic issues in recent months in an attempt to woo traditionally Republican voters. Her position on video games is most likely a political manoeuvre, but having such a well-known, prominent Democrat come out swinging against video games may have a greater impact than similar moves by more right-wing politicians.  In any event, it keeps the spotlight on violent video games.

Coverage at http://shorl.com/fevodasabrygu

Senator Clinton's press release at http://shorl.com/hebonajipedu

SONY SHAKEN BUT NOT STIRRED

A US District Court has confirmed a jury's decision requiring Sony to pay damages for patent infringement to Immersion Corp. The jury ordered Sony to pay $82 million in damages (see previous coverage ) for infringing patents relating to 'vibro-tacticle"? technologies that cause controllers to vibrate in response to what is happening in the game. Immersion's infringement lawsuit names the PS2 console, Sony's DualShock controllers, and 47 games. 

The judge increased the damage award to $90.7 million to account for interest and issued a ban on the sale of PS2 consoles; however, that ban has been stayed pending Sony's appeal of the decision. Sony has paid Immersion $7 million in compulsory licence fees, and will continue to pay such fees until the parties settle or the decision is overturned.

Immersion settled a similar dispute with Microsoft over the Xbox console and controllers in 2003.

Coverage at http://shorl.com/fyhonunytovo

And at http://shorl.com/denesumykity

EIDOS' TOMB BEING RAIDED

Purchasers are swarming as EIDOS Interactive is on the block. Although the board of directors of EIDOS has approved a cash bid of $144 million for the company, just 25% of EIDOS's shareholders could block that sale, leaving open the possibility of EIDOS merging with another company. Presently, SCi Entertainment Group is seeking to join forces with EIDOS in a share transaction. The odd part? A game company is on sale and Electronic Arts hasn't already bought it.

Full coverage at http://www.shorl.com/gogrogrofudrino

CLASH OF THE TITANS LAWYERS VS. EA

On March 22, 2005, Electronic Arts' share price fell a precipitous $11.20 per share, or 16.88%. If that injury weren't enough, a Philadelphia law firm has added insult by filing suit against the video game giant, claiming misrepresentations and omissions by EA caused the drop. Specifically, the firm alleges that EA failed to disclose several key facts regarding its competition, state of the market, and hardware shortages, leading to an inflated share price. In other news, Yves Guillemot was seen smiling all week.

Full coverage at http://www.shorl.com/jebraruketave

For more information on the plummet of EA's stock, please see http://www.shorl.com/hinisipygruvi

Someone's About To Get Fired…

Earlier this month, we reported that some Xbox gamers were getting all fired up over their Xbox power cables. Literally. 

Microsoft recalled 14 million of the cables, but it appears that wasn't the only problem. The Xbox power supplies may be a fire hazard too. 

Our suggestion?  Practice your stop, drop and roll.

Coverage at http://shorl.com/dajyvasydove  

NBA STARTS FIVE

The NBA is the most recent professional sports league to enter into new large-scale licensing arrangements with game publishers. However, instead of giving one publisher exclusive rights to use NBA properties (as the NFL did with Electronic Arts), the NBA has entered into non-exclusive licence deals with five different publishers Electronic Arts, Take-Two Interactive, Midway Games, Sony, and Atari.

The NBA says that this approach will keep the quality of the games high and will maintain a diverse range of NBA video games. It also cited the importance of in-game advertising, and how the new licences will give it increased 'virtual signage"? to sell to advertisers.

Coverage at http://shorl.com/fohojobrybide

And at http://shorl.com/gagufamavevo

VIDEO GAMES LINKED TO CRIMINAL ACTIVITY...

...at least if a certain Illinois bill comes into force, that is. Illinois Governor Rod Blagojevich's proposal seeks to criminalize the sale of violent or sexually explicit video games to children, with contravention by a retailer punishable by up to a year in jail and a $5,000 fine. The Illinois House passed the bill on March 17, 2005 amidst concerns that the proposal is vague, unfair to retailers, and unconstitutional. The bill is now up for debate in the Illinois Senate, which must decide the urgency of getting rogue video game merchants off of Chicago's mean city streets.

 
Coverage at http://shorl.com/belufetregrypr

GAMING'S PROHIBITIVELY HIGH EXCHANGE RATES

Blizzard Entertainment, the publisher and developer of the hit massively multiplayer "World of Warcraft," has permanently suspended more than one thousand "gold farming" users from the game. Blizzard claims that gold farming, whereby a user sells her online character's "gold" to another user in exchange for real world "dollars", damages World of Warcraft's in-game economy.

Apparently, Blizzard hopes its users will find gold through actually playing its game, rather than paying someone else to play it for them.

Coverage at http://shorl.com/hibabredapody

I STILL SAY THE USS ENTERPRISE COULD TAKE A STAR DESTROYER

Activision and Viacom recently settled their Star Trek dispute. Sadly, the dispute has nothing to do with whether the USS Enterprise could defeat an imperial Star Destroyer. We would have loved to get a court ruling on that one.

The dispute was regarding the diminished value of Activision's Star Trek game licence. Activision claimed the loss in value was caused by Viacom's failure to promote the existing TV show and make new movies.  I'ma little upset about that too it's high time for a new movie.

 
Coverage at  http://shorl.com/domubegypraje

XFIRE FIRES BACK

Last month we reported that Yahoo! had sued online gaming company Xfire for patent infringement. Yahoo! claimed that a former Yahoo employee (who now works for Xfire) developed online messaging technology that violates Yahoo!'s patents.

Xfire recently responded by counterclaiming damages for unfair business practices. Xfireclaims Yahoo! is trying to force it to sell or licence technology at less than market rates.

 
Coverage at  http://shorl.com/behobyfagupre

HEROS ONE; MARVEL ZERO

Last year, in an article (brilliantly, we think) entitled 'Maybe Modding Isn't So Marvellous"?) we reported that Marvel Comics had sued the publisher and developer of City of Heros. Marvel claimed that the character customization functionality in the game allows players to create superheroes that closely resemble trade-marked Marvel comic characters like "The Incredible Hulk" and the "X-Men".

Marvel's lawsuit recently suffered a major setback more than half of Marvel's claims were dismissed"?including Marvel's claim that the defendants had directly infringed Marvel's registered trade-marks.

On the copyright issue, the judge concluded that the character customization feature has a substantial non-infringing use (for example, making superheros who look like lawyers). This meant that the defendants shouldn't be held liable for contributory copyright infringement.

Coverage at  http://shorl.com/bestebribymeste
And at  http://shorl.com/fytugreprynuvy

ARE CUTE SUPERHEROES APPROPRIATE?

The Entertainment Software Rating Board recently announced the new rating category "E10+" for games suitable for children approaching their teens. The new category is meant to fill a gap between "E" for everyone and "T" for teens, with the thought being that there are distinct developmental differences between the ages of 6, 10 and 13 that the current ratings do not distinguish between. E10+ will be used for games suitable for children 10 and over, which might contain moderate amounts of cartoon, fantasy or mild violence, mild profanity, or minimally suggestive themes. The President of the ESRB has said that likely candidates for E10+ include games with superheroes or cartoon characters, cute as they may be, involved in some fighting.

The ESRB is a self-regulatory body established by the gaming community. This new rating reflects the industry's continuing attempts to address, by itself, concerns about what games are appropriate for children. The industry hopes to make legislation addressing games (examples of which are cropping up with great rapidity) unnecessary.

Coverage at http://shorl.com/dususibrijero

YAAR - CONSOLE PIRACY BE ON THE RISE, MATEY

A recent survey by Macrovision, a California-based anti-piracy firm, shows that 21 percent of console gamers use pirated software (mostly from peer to peer networks). Obviously such gamers also use mod chips or modify their consoles without chips to be able to play the pirated games. Macrovision, probably with an eye to future business, warns that game piracy is bound to increase in the future.

The report also claims that three quarters of those who obtain pirated games would have purchased the games had they not been available for free, so it's interesting to wonder the extent to which the pirates also buy legitimate copies of games.

Coverage at http://shorl.com/gebygroludruhu

SONY CRACKS DOWN ON CRACKS DOWN UNDER

Australia's position on mod chips just became more interesting. In 2002, the Australian Competition and Consumer Commission intervened in a case launched by Sony Computer Entertainment Australia against Eddy Stevens, who was supplying mod chips to the Australian market, on the grounds that the PS2's region coding created artificial trade barriers which deprived Australians of their chance to purchase games and DVDs overseas. Unfortunately for Stevens, the ruling was overturned, and he has now filed a further appeal in Australia's High Court.

Sony, who is awaiting the decision of the Stevens appeal before proceeding, claims that recent changes to copyright laws, enacted by Australia to comply with its Free Trade Agreement with the USA, offer a fresh opportunity to bring the pain to Australia's nefarious mod chippers.

 
Coverage at http://shorl.com/bibrityprefroste

NOT NEARLY FRIGHTENED ENOUGH

Peter Jackson, who directed the Lord of the Rings movie trilogy and is currently remaking King Kong, has sued New Line Cinema for a greater share of licensing profits from the LotR movies. One of his specific claims is that New Line did not pay for scripts and song lyrics used in an unspecified Electronic Arts video game.

Although the full details of the claim are not clear, the action highlights a couple of points. First, video games are clearly an important source of potential licensing revenue for content creators, and it is crucial to address them explicitly in licensing transactions. Second, on a related point, video game creators must be very sure that they have the right to use every bit of third-party content included in their games.

Coverage at http://shorl.com/fifregrakohisto

And at  http://shorl.com/gogyfrinedeke

TAKE TWO ROUND TWO

The families of three police officers killed in 2003 have sued Take Two, Wal-Mart, Sony and various video game stores.  The lawsuit claims the teenaged killer was motivated and trained to kill by Grand Theft Auto.  The lawyer who launched the lawsuit was unsuccessful with a similar lawsuit in the past, but is now relying on new medical studies which may show a link between video games and youth violence.  Take Two has denied any such link.Coverage at  http://shorl.com/hagrigriprinugy http://shorl.com/bykodifybrigri

EA ROUND TWO

An employee of Electronic Arts has filed a class-action lawsuit for overtime.  The lawsuit follows an earlier lawsuit launched against EA by another employee.  To be successful, the employees will have to show that California's exemption on overtime for some software workers does not apply to them.  One of the employees is trying to do so by arguing that EA engineers rarely use their own judgment and do not perform work that is original or creative.Coverage at http://shorl.com/hukybogikade http://shorl.com/berifejybrigro

TOPLESS TEEN ROUND TWO

Yes, we caught the pun.  Here's the story  the anonymous plaintiff who sued Topheavy for including topless footage of her in The Guy Game has been awarded a temporary injunction against the company.  The plaintiff had been videotaped while competing publicly in a topless contest during spring break.  The plaintiff was a minor at the time of the contest, so her lawyers have argued that the waiver she signed was void (despite the fact that she provided ID at the time which showed she was an adult).  Topheavy has appealed, arguing that the plaintiff lied about her age and then willingly participated in the contest knowing she would be asked to flash her breasts in public.Coverage at http://shorl.com/gegifodropibu

MONOPOLIZING MONSTERS GROUNDS FOR EXILE

More than 800 Final Fantasy XI players have had their on-line accounts permanently deleted for violating the game's user agreement.  For example, some of the players monopolized monsters (to prevent other players from accessing the monsters' treasure, which of course has great in-game value) and harassed and killed other players' characters.  The terms of service specifically prohibit such activities, which may disturb the enjoyment of other users.  The fact that monster-monopolizing might be enjoyable doesn't matter.Coverage at  http://shorl.com/hatotresekodru

NINTENDO GETS PICKY ABOUT WIKI

Nintendo has warned Webzen (the publisher of MU Online) that some of the characters in Webzen's new online game, Wiki, are similar to those in The Legend of Zelda The Wind Waker.  Nintendo says it will wait until Wiki is finalized before deciding whether to start a lawsuit.  Coverage at http://shorl.com/hastefrejybofi

VIDEO GAME LEGISLATION KEEPS ON COMING

A growing number of US jurisdictions are proposing legislation that restricts the sale of violent video games.   California proposes a ban on youth access to games with graphic depictions of violence; Michigan is contemplating a bill that would ban the sale of games with a Mature or Adults Only ESRB rating to people younger than 18; and Illinois has a new proposal to ban sales of violent and sexually explicit games to children.  Such measures seem to have become a cause célèbre among politicians, although similar proposals in the past have failed.  The video game industry opposes this sort of legislation, preferring to rely on voluntary self-regulation.  However, as the hype increases over video game violence and its relationship to actual violence (a controversial subject in itself), these sorts of legislative proposals will continue to appear.Coverage at  http://shorl.com/dadapofrifegru http://shorl.com/jevusekakyna http://shorl.com/fofinugareho http://shorl.com/bejuditehyste

XBOX CABLE A HOT ITEM

Microsoft has promised to replace more than 14 million Xbox power cables due to safety concerns, citing reports of minor injury or property damage due to faulty cables.  This serves as a reminder that problems with video game software or hardware can cause damage and public relations issues for gaming companies.Coverage at  http://shorl.com/bifetehotrami

VIDEO GAME FIGHT TAKEN OUTSIDE

A Japanese student was arrested recently after threatening to kill his friend during an argument over - wait for it - which version of Dragon Quest was the best.  The game series is so popular in Japan that the producer does not release new titles on weekdays due to increases in workplace and school absenteeism.  Whether the game is worth uttering death threats over is another matter - one would think that such passion should be saved for more important issues, such as whether the USS Enterprise could defeat an Imperial Star Destroyer in a one-on-one fight (Dave says no;  Chris says yes).Coverage at  http://shorl.com/dejedunefrupru

DON'T ATTACK ME - I'M ORDERING PIZZA

Two recent stories address the development of in-game advertising and product tie-ins.  First, Sony's new Everquest II on-line multiplayer game has a built-in function that lets players access the Pizza Hut website and order pizza without leaving the game (the game does not pause during the transaction, however, so players are cautioned only to order pizza while in a safe place).  Sony also plans to integrate the pizza function even further, so that players can charge their pizza purchases to their monthly game subscription bill.  How Sony plans to deal with the resulting waste issues remains to be seen.Second, Swedish game publisher Funcom has entered into a new deal with Massive which will see Massive stream advertising into the Anarchy Online gameworld.  As discussed in Issue 1.1 of the Video Game Law Report, this in-game advertising trend will only get bigger as advertisers catch on to the fact that a key market demographic is shifting from television to video games for entertainment.Coverage at  http://shorl.com/badekogryfose http://shorl.com/fastidynidobru

YAHOO! SUES XFIRE FOR PATENT INFRINGEMENT

Yahoo! recently sued start-up Xfire for patent infringement. Yahoo! claims Xfire's online chat application for gamers violates Yahoo!'s GameProwler instant messenger application. Both applications allow users to see if friends are playing games online. 

Coverage at http://shorl.com/gykutydupunu

Yahoo! patent at  http://shorl.com/helepelejihu

 

PLAYSTATION SCARES JUDGES

In an ongoing lawsuit between Sony and a video game salesman who installed modchips into Playstations, Sony projected a racing game on the walls of the court to demonstrate how the mod chips worked. The Australian court was at first reluctant to see the demonstration one of the judges was worried that the game might be violent. The judge's fears were eased, however, when Sony promised that there would be only one crash in the game.

Coverage at  http://shorl.com/fugrohuhydyfra

 

JUDGE HACKS HACKER'S PARENTS

The hacker who roasted 50,000 computers with his variant of the Blaster worm was recently sentenced to one and a half years in prison for his actions. His punishment could have been much more severe, but the judge thought the hacker's parents were partially to blame for allowing the hacker to lock himself in his room and "create his own reality" through the Internet.

This raises an interesting issue. In the past, there have been several unsuccessful attempts to sue video game companies for real-world violence which was allegedly caused by kids playing violent video games. It shouldn't be long before someone tries suing the kids' parents instead. 

Coverage at  http://shorl.com/bitrasemivuri

 

FOUR EXAMPLE...

Take this story, for example. Michigan police recently arrested a 4-year-old boy who borrowed his parents' car in the middle of the night to rent a video game. Seriously. (We didn't make this up.) 

An officer became suspicious when he spotted an apparently driverless car with its lights off zigzagging slowly between two lanes of highway.  So the officer turned on the siren and the chase was on. 

The 4-year-old tried his best to evade the officer (smashing into a parked car and then reversing into the police car). But in the end the police got their boy. 

Of course, the real question is how did a 3' tall kid drive a full-sized car? The answer is that he slid down, stepped on the accelerator, then stood up and steered until the car slowed down. And then he repeated the process until he got caught. 

Coverage at  http://shorl.com/duhikadrimira

TECMO SUES VIDEO GAME HACKERS

Tecmo Inc. recently sued the website administrators of a site dedicated to hacking into video games including some of Tecmo's games. Tecmo was particularly upset about modifications of the code to Dead or Alive Xtreme Beach Volleyball to make the players appear nude.

The lawsuit appears to have been effective, at least in the short term. The defendants' website is currently offline. 

Coverage at  http://shorl.com/fugrobemyfrojy

 

UNIDENTIFIED TRADE-MARK SIGHTING

Those who enjoy speculation are intrigued by two Japanese trade-mark applications filed by Nintendo in late 2004. The marks are V-POCKET and PCGP, and the applications refer to a wide range of wares. 

Whether the marks relate to as-yet unknown Nintendo products remains to be seen, and Nintendo will not comment on any of its trade-mark or patent applications. However, game developers and publishers sometimes register trade-marks on the off chance that they will be useful in the future - for example, Sony applied to register SHOCK AND AWE in March 2003, just after the invasion of Iraq, but abandoned that application shortly thereafter.

Coverage at http://shorl.com/jatujuvyfrohy

TWO SEPARATE YET EQUALLY IMPORTANT MEDIA

In a clear case of art imitating art, the February 8 episode of Law& Order Special Victims Unit dealt with teenagers who were apparently inspired by their favourite gangster-lifestyle video game to commit a brutal crime. How video games are portrayed in other forms of popular entertainment is not necessarily of great significance. However, the Law& Order series is known for dealing with topics that are very current and of public interest, and the fact that it addresses video game violence indicates once again that this issue is garnering a great deal of public and media attention, and reflects the continuing concern (hysteria?) over video game content.

Coverage at http://shorl.com/hovelopryjupri

Episode description at http://shorl.com/geripohalatra

CAPITOL PUNISHMENT

Citing links between juvenile violence and video games, Washington D.C.'s municipal government has announced that it wants to ban sales of violent and sexually explicit video games to minors. Stores that sell proscribed games to minors could lose their business licences and could be subject to a $10,000 fine if the proposed bylaw becomes reality.

Coverage at http://shorl.com/hagydraluhydry

TAKE TWO ROUNDS THIRD

Take Two Interactive has entered into further semi-exclusive baseball agreements by signing long-term deals with MLB Properties and MLB Advanced Media, two key Major League Baseball licensing firms. These deals, which come shortly after Take Two's deal with the MLB Players' Association, give the game publisher rights to the brands of all the clubs and ball parks in the league. As before, Take Two acquires exclusive rights among third party publishers, but video game system manufacturers will still be able to develop and publish baseball games.

Coverage at http://shorl.com/fuvodrobrostyti

MISSOURI JAILS AREN'T FUN ANYMORE

The Governor of Missouri recently banned video games from Missouri prisons. He didn't like the idea of allowing Missouri's most violent inmates to play games simulating murders and carjackings. The ban also applies to Pac Man, Donkey Kong and Sonic games because ghosts, apes and hedgehogs have rights too. 

Coverage at http://shorl.com/gyrujigefrumy

PROTECT THE KIDS!

China has banned the sale and distribution of 50 video games. Some of the games are pirated and others violate Chinese gaming regulations which outlaw games that "hurt national dignity". Chinese state media said the purpose of the campaign was to combat harmful influences on the young.

Coverage at http://shorl.com/fohystastemydri

 

AND THE BOYFRIENDS!

Talk about bad break-ups. A woman is facing criminal charges in Japan after deleting her ex-boyfriend's data on "Lineage", a popular online fantasy game. The woman wasn't too happy that her ex had broken up with her, so she illegally used his username and password to access his online account and wreak havoc. No word yet on who gets to keep the couple's online dog.    

Coverage at http://shorl.com/jekykirugude

 

AND WATCH OUT FOR THOSE ANCIENT GREEKS!

There's more to watch out for online than upset ex-girlfriends. A new Trojan horse called "LegMir-Y" is also out to steal usernames and passwords for Lineage. And as it turns out, real-world crime is not new to the Lineage arena online gamers have been hacking into other users' accounts, stealing other users' online identities and fraudulently selling virtual weaponry for years.     

Coverage at http://shorl.com/jabralofrofije And at http://shorl.com/byfrylevobrifri

DUKE NUKEM? NUKED 'EM!

3D Realms has shut down development of an amateur mod for Half-Life 2 which was meant to recreate Duke Nukem 3D. 3D Realms, which developed the classic Duke Nukem 3D, is currently working on that game's sequel. There is clearly a tension between protecting intellectual property and promoting the game. In this case, 3D Realms made the safe bet.

Coverage at http://shorl.com/hepypugrostubro

TAKE 2 TAKES TWO, GETS ON BASE WITH MLB

Take 2 Interactive has reached an agreement in principle with the Major League Baseball Players Association to develop and publish baseball video games. Under this seven-year deal, Take 2 will have exclusive rights among third-party publishers to develop and market baseball video games. Video game system manufacturers will still be able to develop and publish baseball simulation games for their own platforms. Given recent similar agreements between EA and the NFL, ESPN, and Reebok, it seems like there are few professional sports leagues left without exclusive contracts with game developers. But here's a free tip: we hear curling is still up for grabs...

Coverage at http://shorl.com/guminafipryvu

Exclusive curling licences at http://www.curling.ca

ONE GAME PATENT . . .

Microsoft has filed a US patent application for a system that will help consumers determine whether their PCs can run a particular piece of software. The system involves a "capability tool", which examines a PC's components and assigns the PC a numerical rating, and an independent ratings board which assigns ratings to software applications and games. If the two ratings match, the PC will be able to run the software in question. This system should help gamers in their eternal struggle to determine whether their PCs can handle the latest games.

Coverage at http://shorl.com/jagepasugribri

. . . AFTER ANOTHER

Sony has also filed a US patent application, this one to do with wirelessly connecting portable game machines (ie Sony's new handheld PSP) with various Internet-connected devices. The application discusses various scenarios, including connecting the portable game device to a remote server for processing software that's too complex for the handheld device; storing content (games, movies, music, etc.) on central servers for uploading to the handheld device when required; and e-commerce transactions such as buying games online through the handheld device. This patent application is likely part of Sony's strategy to make the PSP a general portable multimedia device rather than a mere game machine.

Coverage at http://shorl.com/geratykynybu

PSST... WANNA LEARN HOW TO BUILD AN XBOX2?

A new US patent might describe key elements of the XBOX2, including a system of multiple processors which work together to generate realistic geometry while simultaneously managing other routine game functions. 

Coverage at http://shorl.com/fefregronusypry Patent application at  http://shorl.com/fesefostofibru

PSST... WANNA LEARN HOW TO MAKE IT SHAKE?

A jury has awarded Immersion Corp. $82 million in damages after deciding that the rumble feature in Sony's Dual Shock controllers violates two US patents owned by Immersion. Sony was also ordered to pay a licensing fee of 1.37% per quarter on sales of PlayStations, Dual Shock controllers and various PS2 games that use the technology. 

Coverage at http://shorl.com/jahypobrebryhe

Patents at  http://shorl.com/bugolonapore

And  http://shorl.com/gerivanyhidi

 

MINOR A VIDEO GAMES PROBLEM TOPLESS TEEN SUES

A Texas court has ordered that Microsoft, Sony and others temporarily stop selling "The Guy Game", which contains topless images of the plaintiff. At the time the photos were taken, the plaintiff was 17. The plaintiff says she did not give consent for her images to be used in the game. Even if the plaintiff had given consent, the consent might not be enforceable because the plaintiff was a minor at the time.

Coverage at  http://shorl.com/giforipramiva

 
The issue of rights clearances has also arisen in the fictitious world, albeit in relation to trade-mark and copyright clearance rather than privacy and personality rights clearances. For example, late last year Marvel Enterprises Inc. sued NcSoft Corp. and Cryptic Studios Inc. in regard to their massively multiplayer game "City of Heroes". Marvel claimed that the character customization functionality in the game allowed players to create superheroes that closely resemble trade-marked Marvel comic characters.

VIDEO GAMES A MINOR PROBLEM ILLINOIS GOVERNOR

The governor of Illinois has proposed new state legislation prohibiting the sale or rental of excessively violent and sexually explicit video games to children younger than 18. The proposed legislation also requires retailers to label violent or sexually explicit video games. However, whether the proposed law would stand up to US freedom of speech requirements is an open question -- attempts to create and enforce similar legislation in other states have met with little success.

Coverage at http://shorl.com/dakidrusafribry

AS IS ESPN

Electronic Arts continued its trend of signing exlusive licence agreements with everyone under the sun (except for us, apparently, but we haven't given up hope) by announcing an unprecedented 15-year agreement with ESPN that gives EA exclusive first rights to all ESPN content for simulation sports games.

Coverage at http://shorl.com/bybebuposypru

REEBOK IS IN THE GAME

Sports giant Reebok has signed a multi-title sponsorship agreement with Electronic Arts, under which Reebok's products will be included in various EA sports games. Reebok sees this as a natural expansion of its branding campaign; EA is downplaying the marketing overtones by saying that the agreement will add "authenticity" to its games. Regardless of the spin it's given, the sponsorship agreement demonstrates how video games are coming into their own as branding and marketing platforms.

Coverage at http://shorl.com/dubrojolyjypu

REVERSE ENGINEERS LIABLE

(This is an archived case summary)

Davidson & Associates v. Internet Gateway, et al
US Court of Appeal for the 8th Circuit (2005) No. 04-3654

The plaintiffs do business as Blizzard Entertainment, and make and sell computer games such as StarCraft and WarCraft. Blizzard launched an online service, Battle.net, that allowed gamers to play with each other over the Internet. Blizzard has valid copyrights on all of its games.

Blizzard took steps to avoid piracy by creating various safeguards in its software. For example, when a user connects with the Battle.net server, the server performs a "secret handshake" with the game to verify if the game is an authorized version. Furthermore, in order to play a Blizzard game users must install the game and agree to comply with the End User Licence Agreement and Terms of Use (both of which prohibit reverse engineering).

The defendants created a similar server to Battle.net and reverse engineered the Blizzard software to allow users to play both real and pirated versions of the Blizzard games online. The most significant difference was that the defendants' server read every code as an "ok" when performing the "secret handshake" and allowed users to log on regardless of the status of their software.

The Court of Appeal upheld the District Court's finding of copyright infringement, circumvention of copyright protection systems, trade-mark infringement and breach of the user agreements.