Lawyers in Canada: Davis LLP - Legal Advisors Since 1892

TAKE TWO TAKES THOMPSON OUT

Last month we reported that Take Two sued anti-video game lawyer Jack Thompson after he threatened to interfere with the sale of GTA IV and Manhunt 2 in Florida. At the time, Thompson declared the lawsuit to be "the single dumbest thing I have ever seen any lawyers do in my thirty years of practicing law."

Well, apparently not.

According to GamePolitics, Thompson has now settled the lawsuit by agreeing not to sue Take Two or threaten to interfere with the sales of Take Two’s games. Take that!

Coverage at: http://tinyurl.com/2x9q7w (GamePolitics)

UK SURVEY OFFERS INSIGHTS INTO VIDEO GAMES

The British Board of Film Classification recently commissioned a survey in which gamers, parents and members of the game industry were interviewed about various aspects of video games. The BBFC is the UK's independent film and video industry regulator, and is also responsible for classifying video games.

The general consensus among the gamers surveyed was that games are a form of entertaining escapism, but do not desensitize players to real-world violence. Nor do gamers lose the awareness that they are playing a game or mistake games for real life.

The survey offers many other interesting insights about games and how parents and gamers (and parents who are gamers) view them.

Survey at: http://tinyurl.com/2q92ne

CONTRACTS IN THE MMO WORLD

We recently co-authored an article on MMO contracts with German lawyer Andreas Lober. The article was published in the CBA National Magazine's Addendum. For your reading pleasure, here's the link: http://tinyurl.com/2yxrsz

ESRB GAME RATINGS ROCK

So says the FTC. Well, sort of.

According to a new report from the Federal Trade Commission, over 87% of parents surveyed were aware of the ESRB system, and over 70% said they used the system when considering games for their kids. The other 30% are presumably letting their toddlers play M rated games….

FTC report at: http://tinyurl.com/27dhjz

ESA Once Again Awarded Legal Costs In Challenging Video Game Legislation

The ESA has been awarded legal fees of $91,000 as a result of its successful constitutional challenge of a Louisiana law regulating the sale of violent video games. The Louisiana law, which was passed in June, 2006, had been crafted by Jack Thompson, an anti-video game lawyer and activist. The law provided for fines of between $100 and $2,000 and prison sentences of up to 1 year for retailers caught selling violent video games to minors.

A preliminary injunction against the law was issued by Judge James Brady in August, 2006 and was thereafter made permanent in November, 2006. Judge Brady held that studies linking video-game violence and real-world violence cited in the legislation were "tenuous and speculative." As to the Louisiana state government, the Judge had few kind words, ultimately opining that "the taxpayers deserve more from their elected officials."

This is not the first time costs have been awarded in such circumstances - Illinois, Michigan and a few other states have had to cover the ESA's legal bill for similar, and successful, constitutional challenges of state video game regulations. To date, $1.71 million in attorneys' fees have been awarded to the ESA, covering nine rulings over seven years.

Coverage at: http://shorl.com/drifihotratedi (ars technica)

Activision Gets Tough With Unauthorized Resellers

Activision has filed a complaint with the US District Court alleging that Maryanne Leach, an individual, has infringed its copyright by distributing to the public two of its most popular video game titles, Call of Duty 2: Big Red One and Tony Hawk’s American Wasteland. In the complaint, Activision is seeking damages, injunctive relief, and an order requiring Leach to destroy all copies of the games still in her custody.

It seems that Activision has built up some confidence after its recent success settling its Guitar Hero lawsuit against some former employees. Anyone else want some?

FBI To Investigate Online Gambling

At the invitation of Linden Labs, creators of Second Life, the FBI has commenced an inquiry into whether virtual currency which can be bought with real money contradicts a U.S. statue introduced last year banning online casinos.

Coverage at: http://bloggeykong.blogspot.com/2007/04/fbi-to-investigate-second-life-gambling.html (Bloggey Kong)

Take-Two Under SEC Investigation

Take-Two Interactive Software Inc. has received a notice from the Securities and Exchange Commission that it is under formal investigation for its stock-options practices.

Take-Two completed earlier this year its own investigation of its stock-option practices and subsequently, its former CEO and founder, Ryan Brant, pleaded guilty to fraud. Take-Two cleared its current executives for any wrong-doing. It will interesting to see if the SEC comes to the same result.

Coverage: http://shorl.com/segihymepeda (C/Net News)

Boardroom Coup At Take-Two

A majority of the shareholders of voted in favour of putting a new board in place at Take-Two Interactive Software Inc.’s annual general meeting.

A group of large shareholders decided that it was in the best interest of the company to put a new board in place as the directors in their opinion were to blame for the financial and back-dating of option troubles.

This is a very interesting case of shareholders activism in this new corporate governance age and so far the market has acted positively to the move.
Coverage: http://shorl.com/nurobarihygu (Monterey Herald.com)

Britain Bans Xbox 360 Racing Ad

The ad, which is not for any specific game, involves a street race between two cars in heavy traffic. The race culminates in one of the cars overturning. Though the cars never exceed the speed limit, the ad was shown only after 9 pm, and it further included onscreen text reading "Dramatisation. Professional stunt. Do not attempt." the UK Advertising Standards Agency upheld consumer complaints against the ad for "glamorising street racing", ruling that it breached health and safety and driving standards rules, and should not be re-broadcast.

The ASA took the position that the onscreen text only “reinforced the sense that the events were real, rather than fantasy, and were therefore capable of being copied” and stated that the agency was concerned "that the ad gave the impression that reckless street car racing was exciting and fun”.

Coverage at: http://shorl.com/jybramidrusopi (Gamasutra)

Activision Settles Lawsuit Against Former Guitar Hero Executives

In yet a further chapter in the Guitar Hero legal saga, RedOctane’s parent Activision has settled its lawsuit against two former Guitar Hero executives. Activision alleged that the former employees used confidential and proprietary information obtained during their employment at Activision to develop a competitive game with the Guitar Hero series. As part of the settlement the former employees consented to a permanent injunction prohibiting them from distributing a demos of their competitive game, developing certain instrument-based games for one year, and developing competing controllers for the Xbox 360 and specific confidential peripherals until 6 months after their commercial release by Activision.

Coverage at: http://www.gamasutra.com/php-bin/news_index.php?story=13378 (Gamasutra)

DENVER RTD REJECTS BAN ON ADS FOR ADULT-RATED VIDEO GAMES

The Denver Regional Transportation District (RTD) directors have ultimately rejected banning the use of adult-rated video game ads on agency buses and trains. The ban, which was put forward by the RTD committee, was initially proposed by “the Parents Television Council and the Campaign for a Commercial-Free Childhood,” recommended that Mature (M) and Adult Only (AO) games not be advertised on local transportation because it “exposes young riders to graphic violence and explicit sexual content”. The current RTD policy does apparently prohibit the posting of ads which are “deceptive, illegal or obscene” or which promote the sale of tobacco products. Additionally, if the existing policy does indeed require that content be “of a reputable character,” conceivably the policy as it stands could be used to limit the content of advertisements relating to any video game. Airing on the side of caution with regard to constitutionally entrenched rights to free speech in the U.S. was probably the right thing to do.

http://tinyurl.com/26c5j8 (Denver News)

HOUSE BILL NO. 77 - ROUND 2 FOR AMENDING VIDEO GAME LEGISLATION IN DELAWARE

On Mar 14, 2007, House Bill No. 77 was “Introduced and Assigned to Judiciary Committee” in the House of Representatives. Delaware Representative Helene Keeley is once again attempting to introduce legislation in the U.S. which would target access to video games with “mature” content by minors.

If enacted, the new Bill will require Entertainment Software Rating Board (ESRB) ratings to be displayed at the point of sale, or, in the absence of an ESRB rating, to be clearly and prominently marked as “not rated”. Additionally, retailers will be barred from selling Mature (M) and Adult Only (AO)-rated games to persons under the age of 17 and 18, respectively. Identification, which provides a date of birth, will be required at the point of sale.

Attempts by Keeley to push legislation to restrict access to violent content by minors has failed in Delaware in the past; however, Keeley seems determined to press on.

SYNOPSIS of BILL NO. 77:

“This Act prohibits a person from selling or renting a video game, if rated, unless the official rating is clearly displayed. This Act also makes it unlawful for a person to sell or rent to an underage person and requires proof of age prior to sale or rental. Any violation will be a Class “A” Misdemeanor. “

http://tinyurl.com/3694p5 (game politics)
http://tinyurl.com/3bqgp3 (proposed Bill)

Vancouver International Game Summit

Can't get enough of our posts? Want to hear us in person? Well here's your chance! Dave and Chris will be speaking at the Game Summit in Vancouver on May 4th. Here's more info:

CONFERENCE FOCUS:Tapping into the fast growing pool of game creators residing on the West Coast of Canada and the U.S., the Summit will showcase designers and leaders from the digital entertainment community, highlighting the latest trends in game development and publishing, and global perspectives on industry growth. Enjoy educational, networking and business opportunities, and a world class agenda that features management, technical and design tracks, as well as interactive workshops. Click here for the full agenda and confirmed conference speakers:
http://www.rebootconference.com/games2007/agenda.php