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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

» Legislation & Regulation

Help Save the IT Work Permit Category

HRSDC intends to eliminate the Information Technology Workers category any day. Provide your support for saving the IT category - Information Technology Workers

The IT Category - Advantages to Avoiding LMO Applications

The standard work permit process for temporary foreign workers is a two-step process:

  • The first step involves the prospective employer applying to Service Canada for a Labour Market Opinion ("LMO").
  • The second step involves the prospective employee applying for the work permit.

For a few occupations, HRSDC has issued a national LMO to recognize that critical labour shortages in these occupations are experienced throughout Canada. As a result, employers are not required to apply for individual LMOs. One such national confirmation is for Information Technology Workers who fall within one of seven prescribed occupations, including Embedded Systems Software Designers, Software Developers - Services and Software Products Developers.

It is advantageous to prospective employers to not have to apply for an LMO. Reasons include:

1. Employers do not have to show comprehensive efforts recruiting qualified Canadians. This is important in light of the recent developments which make LMO applications increasingly uncertain. Service Canada adopted an arguably overly restrictive approach in January 2009 that continues to the present time. Service Canada is overemphasizing hiring Canadians and underemphasizing other important factors like job creation/retention and skills and knowledge transfer which can result from the hiring of a particular foreign worker.

2. Employers do not have to wait for the LMO application to be processed. The processing time is dynamic and gaming companies can not rely on processing times remaining at the current 2-4 weeks.

3. With the elimination of LMO "extensions" in April 2009, an employer is required to make in essence a new LMO application when wanting to support a work permit extension, including demonstrating that new recruitment efforts were conducted. The company will be required to lay off the foreign worker if it can not secure a new LMO, as may happen due to reasons cited in item 1 above. There are situations where Service Canada can be convinced to waive the recruitment requirement, but this is very much case-by-case and can not be assumed.

Proposal to Eliminate the IT Category

HRSDC has announced that it intends to eliminate the IT category, likely during the first few months of 2010. Particular industry organizations have also apparently been notified. Justification provided by HRSDC for eliminating the IT category is questionable.

The IT category should continue in order to facilitate the recruitment of highly talented and skilled temporary foreign workers. Elimination of the IT category will adversely impact various industries affected in Canada in terms of maintaining their strong position in the global market. If required to apply for individual LMOs, based on current trends, companies will be prevented from hiring talented and skilled foreign workers, and as a result will be forced to either carry out projects with compromised staffing or even forego certain projects due to multinational management deciding to develop projects abroad.

If you support the IT category, let us know and we will pass along said support to the various immigration authorities, federally and provincially.

The Burning Crusade license granted

Last week, it was reported by Gamasutra.com that NetEase had suspended new user registrations due to its application to the Chinese government for a license to operate the World of WarCraft expansion pack The Burning Crusade. It appears that Chinese regulators are showing concern over the "undesirable content" of online games and are allegedly cracking down on foreign investments in its growing online gaming industry.

On February 16, 2010, Gamepolitics.com reported that China's General Administration of Press and Publication (the "GAPP") has granted the license permitting NetEase to operate The Burning Crusade. While the GAPP reportedly claimed to have previously suspended NetEase's permit for what it allegedly referred to as "gross violations" of regulations, NetEase appears to have always maintained that it did not violate any regulation. The GAPP has reportedly said that it granted NetEase the license because it had "taken necessary corrective measures."

Coverage at Gamasutra and Gamepolitics

Proposed new tax credits for video game development in BC

The British Columbia government just announed a proposed new tax credit for the BC film and video game industries. The proposal includes:

  • a credit for video game development, of 17.5% of qualifying BC labour costs
  • a 33% credit on labour costs for foreign productions
  • a VFX tax credit bonus of 17.5%
  • a qualified BC labour expenditures cap of 60% of production costs

If passed, the credit for the video game industry would apply to game development that begins after August 31, 2010.

The purpose of the credits is to help BC compete with other provinces and countries who have actively supported the games industry.

BC government news release is here.

Our previous coverage of Ontario tax credits is here.

PS3 gets hacked

According to Edge, the "unhackable" PS3 has been hacked, with details to follow, apparently.

This is timely, with the latest round of Anti-Counterfeiting Trade Agreement negotiations underway now in Guadalajara, Mexico. Those negotiations cover a wide range of copyright-related topics including anti-circumvention. One proposal is for civil and criminal penalties for breaching anti-circumvention provisions. The US has also proposed that anti-circumvention provisions be expended to cover technology that prevents access to a work (in addition to preventing reproduction of the work)

The US, of course, has anti-circumvention legislation as part of its DMCA. Canada has no such legislation, but for years has been been debating the appropriate Canadian approach to circumvention of copyright protection.

Edge article here.

Human Rights Violations are No (Video) Games

A study conducted by two Swiss human rights organizations, Trial and Pro Juventute, has reportedly found that some video games depict actions that would constitute violations to international human rights laws in real life. More precisely, the researchers focused on International Humanitarian Law (IHL), basic norms of International Human Rights Law (IHRL) and International Criminal Law (ICL). The study was reportedly conducted as follows: gamers played 20 different games, while three attorneys observed the games in order to pinpoint which actions violated armed conflict rules and regulations.

It has been reported that the organizations in charge of the study have made the following statement: "The practically complete absence of rules or sanctions is nevertheless astonishing: civilians or protected objects such as churches or mosques can be attacked with impunity, in scenes portraying interrogations it is possible to torture, degrade or treat the prisoner inhumanely without being sanctioned for it and extrajudicial executions are simulated." The groups also reportedly noted that there were a few games that reprimanded the killing of civilians and that rewarded strategies aimed at preventing damages.

However, the organizations behind the study have allegedly stated that the study's purpose was not to prohibit the games or to make them less violent but rather, on a going forward basis, to have developers observe human rights laws and make it clear to gamers that human rights violations cannot be tolerated, even in a game setting.

Coverage at News.cnet.com

Ontario tax credits and assistance for tech companies

Ontario tries to show you the money (but for how long?)

In these turbulent economic times, it has never been more important to take advantage of existing government programs and tax credits. Ontario has a number of such programs and tax credits to assist emerging video game companies. With government belt-tightening in full swing, it would be wise to act quickly since, as they say, quantities are limited.

Assistance Programs:

The Ontario Media Development Corporation's ("OMDC") Interactive Digital Media (IDM) Fund is designed to provide Ontario interactive digital media content companies with access to the final piece of funding required to move their content projects into production. Successful applicants will receive a non-refundable contribution of up to $150,000 to a maximum of 50% of the project budget to create a market-ready interactive digital media content product. The deadline for applications is November 16, 2009. Almost two years ago, the Government of Ontario introduced The Next Generation of Jobs Fund ("NGJF") to support companies that would develop job-creating projects in Ontario. While companies in a broad range of industries can access the NGJF, digital media is a priority industry. Since the NGJF has been around for two years, there has likely been a material allocation of its funds (and further applications), so interested parties should act quickly before all of the funds are allocated. Finally, at least two game developers have received investments through the OMDC's Video Game Prototype Initiative.
Detailed IDM information here: http://www.omdc.on.ca/Page3215.aspx
Detailed NGJF information here: http://www.ontariocanada.com/ontcan/1med/en/nextgen_main_en.jsp

Tax Credits:

The OMDC also jointly administers with the Canada Revenue Agency a number of media related tax credits which may result in the recovery of a substantial amount of media development expenses. At least two of those tax credits may be of significant interest in the video game industry.

The Ontario Interactive Digital Media Tax Credit ("OIDMTC") is a refundable tax credit for up to 40% of eligible labour, marketing and distribution expenses. The Ontario Computer Animation and Special Effects Tax Credit ("OCASETC") is a refundable tax credit for up to 20% of eligible labour expenses. For both of those tax credits, the process involves first applying to the Ontario Media Development Corporation for a certificate of eligibility and then filing it with your T2 income tax return. The amount of the tax credit less any taxes owing is refunded to you. Generally speaking, qualifying applicants must be corporations with a permanent establishment in Ontario and eligible expenses must be consistent with the particular tax credit you are applying for and must be paid to persons in Ontario.

Detailed OIDMTC information here: http://www.omdc.on.ca/Page3400.aspx
Detailed OCASETC information here: http://www.omdc.on.ca/Page3402.aspx

Many thanks to our tax colleague Dennis Yee for his assistance with this posting

Australia Debates New Game Rating

The banning of Valve's soon-to-be-released Left 4 Dead 2 has spurred debate in the land down under as to whether Australia should adopt a "R18+" rating for video games. Although "R18+" is used for films, the highest classification available for video games is the "MA15+", meaning for audiences 15 or older. For games with adult doses of violence (say, for example, awesome zombie gorefests), the Australian Office of Film and Literature Classification Board has no choice but to refuse classification, which acts as a de facto ban.

Extending the R18+ rating to video games requires agreement by all Australian state Attorneys General. However, South Australian Attorney General Michael Atkinson has opposed such a move, stating that the while the lack of a R18+ rating restricts choice, "that is the price of keeping this material from children and vulnerable adults."

Valve has appealed the ruling but, like others before it, may have to release a modified version of the game in Australia in order to appease the censors.

Coverage from news.com.au available here.

California Ban May Reach US Supreme Court

California legislation prohibiting the sale of violent video games to minors may still have its day in the US Supreme Court. California legislators are hoping the big court will hear oral arguments in their appeal of the decision to strike down the legislation, upheld by the 9th Circuit Court of Appeal this year. Supreme Courts justices met on Tuesday to decide whether to put the case on the docket.

The law, which was signed by Governor Schwarzenegger in 2005, was bounced by the lower courts for violating First Amendment rights. The law would ban the sale of violent games to anyone under 18 and require manufacturers to label the games with an "18" sticker.

An order list issued September 30, 2009 did not include a decision on the application. A decision may be made public early next week.

Coverage from CNBC here.

Venezuela Gets Tough on Virtual Violence; Real Violence Next

Venezuelan lawmakers have taken the first steps towards banning video games deemed excessively violent, in an attempt to reduce actual violence in the country. Reuters reports that a bill banning sales of violent video games passed a first vote in the National Assembly recently, but must still pass a second vote and be signed into law by President Chavez before it takes effect. It is not clear when a second vote would take place.

Legislators are hoping that a reduction in violent video games sales will translate into a reduction in the epidemic of violent crime throughout Venezuela. It is not known what percentage of violent criminals in Venezuela also play video games.

If passed, Venezuela would join countries such as China, Japan and neighbouring Brazil in banning the sale of games on the basis of content. Similar attempts have been made by various US states, although all have been struck down by the courts.

The Reuters report is available here.

CTA Bans Video Game Ads; ESA Sues

The Entertainment Software Association announced that they are suing the Chicago Transit Authority over the CTA's decision to ban all ads for "M" and "AO" rated video games on trains and buses. The policy, which came into effect January 1, 2009, follows the CTA's decision to pull ads for GTA IV last April for "inspiring violence" - a decision that was ultimately reversed when Take-Two sued and later settled with the CTA.

The ESA has decided to challenge the CTA's ordinance on First Amendment grounds, arguing that game ads are entitled to free speech protection and the CTA's rule unconstitutionally "restricts speech in a public forum that is otherwise open to all speakers without a compelling interest for doing so." The ESA also notes that the ads are themselves subject to ESRB review.

A CTA spokesperson said that the policy is consistent with the CTA's long-standing policy of banning alcohol and tobacco advertising.

The full press release is available here.

New York Ban on Texting, Gaming, Surfing While Driving

The New York State Senate has passed a bill which bans texting, playing video games or surfing the Internet while driving, adding to the state's already in-force legislation that makes it illegal to talk on a cell phone while driving. The measure imposes fines of up to $150 for using hand-held devices or laptops to send text messages or view and read data and images. The ban is only a secondary offense, meaning that a fine could only be imposed if a driver is pulled over for breaking another law.

Fourteen other US states and the District of Columbia have banned text messaging for all drivers. In Canada, it is currently illegal to use a handheld cell phone while driving in Newfoundland and Labrador, Nova Scotia and Quebec, and other provinces are considering similar legislation.

While most would agree that such legislation will no doubt improve roadway safety and reduce accidents, it is easy to anticipate opposition to the measures. Driver distractions are limitless -- at some point, most have contended with calming upset children, eating food and drinking coffee, changing the radio station, or simply chatting to fellow passengers while behind the wheel. Many may argue that we're heading down a slippery slope of increased driver regulation, when perhaps increased driver education and common sense should be encouraged instead.

Coverage found at GamePolitics

GTA IV Offers Meth Recipe?

Rockstar and its Grand Theft Auto franchise are no strangers to controversy (hot coffee, anyone?), but according to a recent report in the Times, the British Board of Film Classification investigated reports that a recipe for crystal meth was part of the game play in GTA IV. As it turns out, the recipe, which was available through the game's mock "Craigslist" site, was "inaccurate" and stayed in the game.

But perhaps more interesting than Rockstar's relentless pursuit of subversive content was the gist of the Times' story itself, which was that Britain has abandoned its attempt to have video games classified by the BBFC (which also rates films), and will allow the Video Standards Council to rate games using the PEGI system. Although critics claim that the PEGI system is industry-controlled and less robust than the BBFC ratings, others insist that the PEGI system has been strengthened and will provide needed consistency with the rest of Europe when it comes to rating video games. Surprisingly, even the author of the Byron Report, Dr. Tanya Byron, seems to have come around to the PEGI system, despite recommending in her comprehensive report that the BBFC should handle the job.

Times article is available here.

Gold Farming banned in China

New Chinese legislation has banned the exchange of virtual currency for real goods and services and consequently, it bans the practice of gold farming. The legislation also outlaws the purchase of virtual currency by minors and the use of the virtual currency for gambling.

The virtual currency will only be allowed to be traded in for virtual goods and services provided by the issuer.

Last year, virtual money trade was worth several billion yuan and it has experienced an average annual growth rate of approximately 20%.

Source: Escapist Magazine

UTAH GOVERNOR VETOES GAMING LEGISLATION

Jon Huntsman, Utah's governor vetoed HB 353, a bill which targets both movies and video games.

Hunstman stated:
"While protecting children from inappropriate materials is a laudable goal, the language of this bill is so broad that it will likely be struck down by the courts as an unconstitutional violation of the Dormant Commerce Clause and/or the first Amendment. Therefore, the unintended consequence of the bill would be that parents and children would have no labels to guide them in determining the age appropriateness of the goods or service, thereby increasing children's potential exposure to something they or their parents would have otherwise determined was inappropriate under the voluntary labeling system now being recognized and embraced by a significant number of vendors."

The House of Representatives and the State Senate had easily passed the bill.

Coverage at: GameDaily.com

Schwarzenegger's Anti-Video Game Law Terminated by Appeals Court

Sylvie Lang
On Friday, February 20, 2009 a U.S. Federal Appeals Court ruled that a California law aimed at restricting the sale of violent video games to minors was unconstitutional. The ruling came in the Video Software Dealers Association v. Schwarzenegger, where the video game industry sought to block the anti-vide game law that was signed by Governor Schwarzenegger in 2005. The Appeals Court upheld the decision of the District Court which found that video games are a form of expression protected by the 1st Amendment and that minors are entitled to benefit to a large extent from the guarantee to freedom of speech.
The Court agreed with the Video Software Dealers Association's argument that there are other less restrictive means than censorship of protecting children from violent video games, such as retailer ratings enforcement, ratings education and parental supervision of children's video game playing. The Court also found that in order to justify the restriction on freedom of speech, the government had a burden to prove that the law would directly alleviate a real harm to minors, which it failed to do.
To date there is no indication as to whether the Attorney-General will be back and appeal the decision to the U.S. Supreme Court, although the Senator who drafted the law has stated that he would like to have the decision reviewed.
coverage atGameDaily.com

Arnold's law still terminated

In January 2008, we reported that the State of California had become the site of an ongoing battleground between free speech advocates and legislators seeking to limit access to violent video games.

In 2005 the State Legislature passed a law that would impose fines and other sanctions on people who sold certain video games to minors. That law was down by the U.S. district court in 2007. Shortly afterwards, Governor Arnold Schwarzenegger announced that the State of California had filed an appeal of the district court decision with the U.S. Court of Appeals.

The Court of Appeals recently issued its ruling, concluding that the law is unconstitutional. The ESA described the ruling as a "win" for California citizens. Not surprisingly, the government of California doesn't see it that way, especially in light of the order to pay almost $300K to the ESA for its attorneys' fees.

Gamasutra coverage here.

Health Warnings could Become Mandatory for... Video Games?

Submitted by Karine Bellavance

U.S. Congressman Joe Baca has proposed a piece of legislation entitled the Video Game Health Labeling Act of 2009, which would require that games with an Electronics Software Ratings Board (ESRB) rating of "T" for Teen or higher feature a label stating "WARNING : Excessive exposure to violent video games and other violent media has been linked to aggressive behavior".

Rep. Baca has reportedly stated that the video game industry has the responsibility to inform its consumers of any potential harmful content in their products, which it has failed to live up to, in light of research that demonstrates that there is a link between violent video games and aggression in young people.

However, some have stated that there is no proven link between violent video games and aggressive behavior. As reported on the GameDaily website, although a recent study did suggest a link between exposure to violent games and aggression, this study has been criticized by the Entertainment Consumer's Association (ECA) and a psychologist from Texas A&M University (coverage at www.davis.ca). It has also been argued that a game's objectionable content is disclosed by the ESRB next to its age rating, if any.

Coverage at GameDaily.com

Sharp Feels Sharp Pain

Submitted by Karine Bellavance

It has been reported by PC World that Japan's Fair Trade Commission (the FTC) has slapped Sharp with a fine of over $2.9 million pursuant to Japan's Antimonopoly Act, to be paid by March 19, 2009. An investigation into price-fixing of LCD modules that are used in the Nintendo DS resulted in this fine. It has also been reported that a cease-and-desist notice has been sent by the FTC to Sharp in relation to LCD modules sold to Nintendo from January to March 2007, for the DS Lite.

However, it is reported that Sharp denies having maliciously violated Japan's Antimonopoly Act, stating the following: "We understand there is no precedent in Japan that a cartel in violation of Antimonopoly Act was found for a specific product which was sold to one private company for use of a single product model".

Coverage at GameDaily.com>GameDaily.com

PETA PRAISING PUBLISHER

Submitted by Karine Bellavance

People for the Ethical Treatment of Animals (PETA) is praising publisher Sega for pulling adds it was running on its website to promote its Samba de Amigo game available on Wii. The adds featured a real chimpanzee shaking maracas and reacting to music. The publisher's decision to remove the adds follows an explanation by PETA about the horrible methods used to train chimp 'actors' and their cruel treatment. PETA is greatly appreciative of the publisher's decision, who 'promised to keep all great apes out of its ads' according to PETA's blog. (coverage at: GameDaily.com)

Nonetheless, some adds can still be viewed here.

AUSTRALIA WITHOUT AN R18+ RATING FOR GAMES

Australia is the only developed country without an R18+ rating for games.
The Australian public's opinion was polled about the introduction of an R18+ rating for games and a subsequent report was prepared, however, the South-Australian Attorney-General Michael Atkinson refused to make it public, consequently rendering it null. Atkinson has long been opposed to any type of R18+ rating.
However, at a meeting held on Friday, November 7, 2008 of the Attorneys-General, the Australian censorship ministers agreed to push through a proposal introducing an R18+ rating for videogames. The finalized proposal shall be submitted to family groups as well as industry associations for their recommendations.
Rob Hulls, the Victorian Attorney General believes that an R18+ rating is needed for video games. He marks the inconsistency between restricting certain films with mature content by rating them R18+ but not attributing the same rating to computer games with the same level of mature content.
Some supporters of the R18+ rating amongst the Australian government do not understand why Australia has not yet adopted the rating and call upon the Senate and Parliament to address the issue.

Coverage at: GameDaily.com

REVIVING YEE'S VIDEO GAME LEGISLATION IN CALIFORNIA

This week, a federal appeals court will have to determine whether legislation drafted by Leland Yee for the state of California that had been struck down by the courts should be revived.
The original law required that be marked with an '18' label and that their sale and/or rental be prohibited to minors.
According to Yee, the legislation's main objective is not to sell the violent video games to kids. For some of those opposing the revival of the law, this legislation violates First Amendment Rights and is not effective in denying children access to Mature rated video games since parents often purchase the games for them.

Coverage at: http://www.gamedaily.com/articles/news/california-looking-to-renew-antigaming-legislation/?biz=1

OBAMA IN BURNOUT

Barack Obama has brought his campaign online. It is reported that nine games, including Burnout, Madden, Nascar and NHL, feature Mr. Obama's in-game ads in the Xbox Live versions of the games. The ads are will continue to run until November 3.

Mr. Obama is said to be the first presidential candidate to advertise in a video game.

Coverage at: Gamedaily.com

NY Passes Video Game Display Bill

The New York State Assembly has passed a bill mandating that all videogames sold in the state of New York display ESRB ratings on their packaging. The bill also requires new consoles to be equipped with controls that would prevent the display of indecent/violent video games. Legislators hope that the bill (which will eventually become law) will help to provide parents with much needed information about video games. The bill also foresees the creation of an advisory council to examine issues such as the potential impact of violent media. The bill could potentially become law as early as 2010, although similar bills in other states have been stuck down as unconstitutional.

Submitted by Josie Morello

Coverage at GameDaily.com.

Minnesota pays ESA $65,000

The Entertainment Software Association recently received $65,000 in fees and expenses from the state of Minnesota, after the state tried and failed to draft enforceable anti-violence video game legislation. The ESA challenged the law in court and won. The ESA reports that it has now been awarded $2 million from other jurisdictions after successfully challenging their laws.

Coverage here (GameDaily).

Minnesota Video Game Law Not Dead

If Minnesota's video game legislation were a Monty Python character, right about now it would be saying "I'm getting better ... I think I'll go for a walk." Which is another way of saying that the legislation, while down, is not dead yet.

Back in March, a 3-judge panel of a US Federal Court of Appeal upheld a permanent injunction against the legislation (see our previous post).

Minnesota has now requested a new hearing on the matter which, if it occurs, will take place before the entire Eighth Circuit Court of Appeals. This full hearing could be possible because of certain statements in the decision of the 3-judge panel. The video game industry can argue that there should NOT be another hearing, so it's not yet clear if there will be another hearing. If there is a new hearing, both sides will be able to present their cases again.

Coverage at GameSpot.

No Bully for Brazil?

A Brazilian court has ordered that sales of Rockstar's "Bully" game be suspended, apparently on the grounds that any virtual violence that takes place in a virtual school setting is not acceptable.

Brazil has been in the news for banning YouTube (for a while, at least) because of one particular video. Perhaps the "Bully" ban will be as short-lived.

Coverage at GameSpot.

Arizona game violence law struck

Earlier this month, Arizona passed a new law that would have made game companies responsible for any felony or violence committed by an individual who was being influenced by dangerous or obscene materials including video games. Not surprisingly, the law was recently struck down.

Coverage here (1up).

Online game ratings in Germany

Germany is known to have some of the strictest rules for youth protection in computer and video games, which have brought the world interesting features such as green blood.

Whilst these are a nightmare for the creators of first person shooters especially, online games have been pretty much spared: The law requiring an official rating before the game can be sold without too many restrictions applies to games distributed on storage media only. Consequently, operators of games distributed online only currently do not worry too much about youth protection.

This situation may change, though. At the Munich Gaming conference, the issue was discussed. As always, stricter rules have been demanded, and some speakers wanted an independent body online games. It remains to be seen whether a new body for the assessment of online games will be installed, or whether the USK (which is already rating box games) will take over the task. Also, whether such ratings will be compulsory soon is not sure yet, but seems likely.

However, the mere discussion puts online games into the focus, and this means that game publishers or operators should better respect the existing rules. Already now, a company offering online games has to appoint a “youth protection officer” (§ 7 Jugendmedienschutz-Staatsvertrag) and comply with several other rules, which are nothing short of prohibitive for 16+ games (§ 5 Jugendmedienschutz-Staatsvertrag). Any infringement of these rules can be fined up to EUR 500,000. And they also apply to operators abroad as long as they target the German market.
---
This article was kindly contributed by Andreas Lober at SCHULTE RIESENKAMPFF in Frankfurt.

Manhunt 2 Ready for UK Release

Despite being overturned by the High Court on a “clear error of law”, the UK Video Appeals Committee has reconsidered the ban on Manhunt 2 and once again reversed the decision not to give the game Manhunt 2 an 18-rated age certificate.

The game was originally slated for 2007, but was refused a certificate by the British Board of Film Classification because of "unremitting bleakness" and "sustained and cumulative casual sadism." The VAC overturned that decision, and the BBFC applied for judicial review. The High Court ruled that the VAC had erred in their interpretation of “harm” and sent it back for reconsideration.

In a four to three decision, the VAC allowed Rockstar’s original appeal, and without further legal recourse the BBFC must now issue the certificate. The BBFC stated that although they believe the game posed a real potential harm risk, the VAC had “exercised its independent scrutiny” and that “in the light of legal advice, the Board does not believe the VAC's judgement provides a realistic basis for further challenge to its decision and has accordingly issued an 18 certificate."

Coverage of the Manhunt 2 UK saga can be found in previous posts.
Coverage of the latest decision can also be found at Gamasutra and GameSpot.

Posted by Michael Mjanes

Court Upholds Injunction on Minnesota Violent Game Law

Another Court of Appeal has upheld an injunction against a law banning the sale or rental of violent video games to minors. Once again, the absence of proof of harm was the key factor. However, the 8th Circuit appellate court was less than enthusiastic about the evidentiary hurdle that such a standard implies. Writing for the court, Justice Wollman held:

"Whatever our intuitive (dare we say commonsense) feelings regarding the effect that extreme violence portrayed in the above-described video games may well have upon the psychological well-being of minors, [previous precedent requires] incontrovertible proof of a causal relationship between the exposure to such violence and subsequent psychological dysfunction…The requirement of such a high level of proof may reflect a refined estrangement from reality, but apply it we must.”

A copy of the ruling can be found here.
Coverage available from the Chicago Tribune.

Posted by Michael Mjanes

Fins get tough on games?

According to a weekend report from Afterdawn, the Finnish Christian Democratic Party (CDP) is pushing for a new domestic video game inspection regime. The CDP, which holds only 7 of the 200 seats in the Finnish Parliament, is also looking for more accurate and detailed descriptions about possible violence and erotic content in video game packaging.

But the proposal has garnered criticism from the Finnish Games and Multimedia Association (FIGMA) which was quick to point out that each video game in Finland is already vetted by the Pan European Game Information (PEGI) classification system. The PEGI classification consists of five age categories, 3+, 7+, 12+, 16+ and 18+. The games can also be reviewed by the Finnish Board of Film Classification (VET) if necessary.

In a statement, FIGMA claimed that an additional domestic examination would "decrease the number of released games, cause delays in release schedules, and increase the price of video games." FIGMA also claimed that a new system would likely give consumers a reason to buy their games outside Finland.

Coverage here.

Contributed by Michael Mjanes, articled student.

Stranglehold Ad Banned in UK

The UK Advertising Standards Authority has ruled that a TV ad for Midway's "Stranglehold" cannot be shown on British television because the ad encourages and promotes violence. The decision was prompted by two consumer complaints.

The ad had been carefully prepared so that it did not depict bullets hitting anyone (since the game is associated with John Woo and his "bullet ballet" style of action, there's no question that it features plenty of bullets), and had been pre-cleared by the British NGO which approves ads (the Broadcast Advertising Clearance Centre). Nonetheless, the ASA felt that the ad's voice-over (which read "Honour is his code. Vengeance is his mission. Violence is his only option. John Woo presents Stranglehold. The next generation of action gaming has arrived.") suggested that revenge was honourable and that violence was an acceptable option.

Coverage at 1UP and Game Politics.

Leave No Child Inside

New Mexico’s 1% excise tax bill HB583 is presently under review by the House Business & Industry Committee. It is reported that, if passed, it will become law on January 1, 2009 and would result in taxes being paid on purchases of video games, consoles and televisions. Also known as the Leave No Child Inside Act, this piece of legislation is intended to fund outdoor education programmes for school children.

coverage at GamePolitics

Manhunt 2 Still Banned in UK

Despite a successful appeal to the British Video Appeals Committee (see our previous coverage), it appears Rockstar Games is still not able to release the controversial Manhunt 2 in the UK. On January 24, 2008 the High Court ruled overturned the VAC’s ruling, telling the committee that it must reconsider its decision because it had committed a "clear error of law" in its approach to the question of harm.

As a result, Rockstar is still unable to sell the game in the UK, despite submitting a new version based on the cuts made for the M-rated US edition of the game. Rockstar has stated: "we believe the VAC decision was correct and do not understand the court's decision to expend further public resources to censor a game that contains content well within the bounds established by the BBFC's 18-plus ratings certification."

Coverage at GameSpot.

Summary by Mike Mjanes.

Tariff 22A Decision and video game music

The Society of Authors, Composers and Music Publishers of Canada (SOCAN), the collective society mandated to collect royalties for musical works in Canada, proposed a tariff to the Copyright Board of Canada (the Board) targeting musical works communicated by means of Internet transmission. SOCAN’s proposed tariff rate, retroactively covering the years 1996 to 2006, worked as a percentage of either gross revenues or gross operating revenues. Among the rates proposed were: 10% for music websites that offered downloads with previews, 7% for music sites without previews, 16.7% for sites with on-demand streams, and 4% for game websites (including gambling).

Several parties objected to the proposed tariff, including the Entertainment Software Association (ESA) on behalf of Canadian video game publishers and distributors. The ESA argued that downloading over the Internet was not a “communication to the public” by telecommunication, as required by the Copyright Act, and that no liability existed for point-to-point digital delivery of video games to end users. The ESA also argued that music made up a minute part of the total audiovisual output of a video game, and that video game publishers generally enter into agreements with third-party rights holders to provide music for video games. Therefore, rights holders are fully compensated in advance of the game’s publication.

However, the ESA also submitted that if the Board must certify a tariff, the only acceptable proxy was the existing “low music use” tariff, which is 0.8 per cent of advertising revenues related to music. A further discount of 90 per cent should be applied to reflect that music “is never the main feature of any communication that might occur on a video game publisher’s site.”

The Board held that, per the Supreme Court of Canada’s decision in SOCAN v. Canadian Assn. of Internet Providers (CAIP), a musical work is communicated to the public by telecommunication when a server containing the work responds to a request for a download, and it is the person who makes the work available on the Internet who authorizes its communication. The Board also held that the communication of software in which music is embedded is no different than communication of a television program containing music. The Board did not agree with the ESA’s argument that the proper approach to addressing music within games was contractual rather than regulatory, given the context of SOCAN’s regime.

In the end, the Board certified a tariff, although not the one proposed by either SOCAN or the ESA. The Board decided to only deal at this time with uses targeted in an earlier tariff, commonly referred to by the Board as the “CSI - Online Music” tariff. These uses include permanent downloads, limited downloads and on-demand streams. A tariff for musical works contained in video games was not set. The Board held that dealing with the other uses targeted in Tariff 22 (such as video games) would “raise administrative and wording issues that will require extensive negotiations with the parties.” Nevertheless, in their response to ESA’s arguments the Board indicated that it considered music in video games a communication to the public by telecommunication, and open to regulation by tariff.

On that basis, the Board held that if a communication to the public involved the communication of a work within SOCAN’s repertoire (by one of the targeted uses) then SOCAN was entitled to a tariff. The tariff rates were set at 3.1% for permanent downloads, 5.7% for limited downloads, and 6.8% for on-demand streams (after discounts). Minimum fees were also established, based on the number of “subscribers”.

Subsequently, five of the objectors, including the ESA, applied to the Federal Court of Appeal for judicial review of the Board’s decision.

RE: SOCAN Statement of Royalties, Internet-Online Music Services
October 18, 2007 Copyright Board of Canada
61 CPR (4th) 353
KEYWORDS: tariff - royalties - digital music - Copyright Board
Summarized by Michael Mjanes

Ginko Financial Could Be In Hot Water Again

Following its demise this summer, “self-styled” virtual bank Ginko Financial was thought to have disappeared into the ether - literally. It appears to have indirectly reared its less than popular head - on eBay no less. According to Ginko’s own site, it is selling a “1U Rackmount Xeon 5160 Server” on eBay to the tune of $3200USD. Apparently the“1U Xeon server works great”. No bids however had been received as of the day of this posting.

Many believe that Ginko’s failure in Second Life is the reason Linden Labs instituted its policy, to take effect today, regarding the removal of “virtual ATMs [and] other objects that facilitate the operation or in-world banking” (see previous post).

For those looking to collect on Ginko’s bad debts - chasing down hardware being sold off on eBay probably won’t bring them much joy. I also wouldn’t be comforted by the claim (on the eBay ad) that “hard disk drives will be erased”.

Coverage at Virtually Blind

China to Restrict On-Line Games?

Reported statistics about on-line gaming in China are pretty staggering: there are about 40.2 million on-line gamers, and 2007 on-line game sales exceeded $1.46 billion. The flip side is growing concern about on-line addiction, and the growing trend of blaming much of juvenile crime on on-line gaming obsessions.

In fact, Chinese authorities are apparently considering implementing new rules to restrict "undesirable elements" of on-line games. According to one official, on-line games are a kind of "spiritual opium", and the gaming industry will suffer by being increasingly marginalized if steps aren't taken to control things.

We wonder exactly which "undesirable elements" will be the focus of any government restrictions, and will stay tuned for further details.

Coverage at News.com.

India Mulling Video Game Ban?

GamePolitics cites various sources which claim that the Indian government is contemplating legislation banning violent video games. It's not clear what form the ban might take (for example, will legislators look to the various pieces of legislation that have been put forward?).

Ironically, one commentator suggests that a band on selling violent video games won't have much impact because many gamers in India prefer to buy illegal (i.e., pirated) games anyways.

Caveat Emptor - Or Not... Linden Labs To Shut Down "Banks" In Second Life

In the wake of the collapse of “Ginko Financial” in August 2007 and a significant number of Resident complaints that in-world “banks” are defaulting on their promises, Linden Labs has decided to break with its tradition of not interfering with “in-world” activities by prohibiting in-world companies from offering interest or any direct return on investments in Second Life.

Starting January 22, 2008, Linden Labs will be removing from Second Life “any virtual ATMs or other objects that facilitate the operation or facilitation of in-world “banking,” i.e., the offering of interest or a rate of return on L$ invested or deposited”. Linden Labs has indicated that after January 22, 2008, it will have the right to sanction companies offering so-called banking services by means of “suspension, termination of accounts, and loss of land”.

The policy does not appear to extend to companies that submit appropriate, approved documents from a regulatory authority qualifying them as a “[chartered or registered] bank” or to companies that do not accept payment in exchange for investments - but “who are merely conducting marketing or education”.

This is not the first time Linden Labs has stepped in. It took a similar position in the past with respect to gambling in Second Life. So what about in-world “lawyers”? Has this latest issue about in-world “banking” possibly brought to light issues of broader application, for instance, in respect of “professional” designations/organizations operating in Second Life?

Coverage at Second Life Blog

Answers to FAQs regarding Linden’s policy at Second Life

Gaming Website Charged with Failing to Protect Minors

An interesting story out of Texas where GamesRadar has been charged by the Texas Attorney General with failing to protect the privacy and safety of children.

The charge stemmed from an alleged breach of the Children’s Online Privacy Protection Act. Specifically, GamesRadar is accused of “unlawfully collect personal information such as names, ages, and home addresses from children [under 13]”.

The charge shows the importance of taking precautions to either restrict access by minors to a Web site or, alternatively, taking special precautions to account for them.

More coverage at fuglore.net

Game Counterfeiter Busted in Vancouver

A game counterfeiter in Richmond B.C., a suburb of Vancouver, has plead guilty to counterfeiting video games for a variety of game systems.

The counterfeiter was fined $25,000 and was forced to give up his counterfeiter equipment.

The amount of the fine was subject to criticism from the software industry who have pushed for harsher penalties for game counterfeiters.

More at the Province

Manhunt 2 Given Go-Ahead in UK

Rockstar's difficulties with Manhunt 2 have been widely reported. The game was initially banned in the UK, and Rockstar appealed that decision (see our previous post).

Today, the 7-person UK Video Appeals Committe announced its 4-3 decision that Manhunt 2 should be given a classification and released in the UK. This decision dealt with the modified version of the game, which has already been released in other markets.

At the appeal hearing, Rockstar argued that Manhunt 2 was being singled out, even though it was no more violent than other games sold in the UK.

The British Board of Film Classification, which initially banned the game, can appeal the most recent decision if it wishes.

Coverage at GameSpot.

Fight Over UK Ban on Manhunt 2 Continues

Rockstar Games, publisher of the ultra violent Manhunt 2 video game, continue to push for a the UK ban on the game to be lifted.

In an appeal to the Video Appeals Committee, Rockstar's legal counsel submitted scientific studies that purported to show that Manhunt 2 was no more violent than numerous 18-rated games and films that were available to the UK public. Rockstar's counsel also argued that banning the game had, by making the game "forbidden fruit", actually increased the public's desire to play it

Legal Counsel for the British Board of Film Classification, the entity that banned the game, responded by arguing that Manhunt 2 was a uniquely violent game.

A verdict on the appeal is expected soon.

More coverage at Gamespot

Is the End of Atari Near?

In response to more disappointing news, Atari, Inc. has publicly questioned whether it will continue to carry on business.

The release of Atari, Inc.'s second quarter results indicated that as compared to the same period last year revenues had dropped from $USD28.6 million to $USD13.3 million and losses had increased from $USD68,000 to $USD7.7 million.

In light of these results (and presumably other recent setbacks at Atari), Atari concluded that:

"The uncertainty caused by these above conditions raises substantial doubt about our ability to continue as a going concern."

More coverage at: Gamsutra

Singapore Bans, Unbans Game

All within a few days, Singapore announced that it was banning the science fiction RPG "Mass Effect", then announced that the ban was lifted and that the game will be issued an M18 rating instead.

The brief ban was caused by a love scene (part of sub-plot in the game) between the player's character and an alien (which resembles a blue-skinned human woman). Singapore objected to the scene that occurred if the player had selected a female character (apparently using a male character was not an issue).

In any event, Singapore has lifted the ban and has stated that while it is waiting for its new game-rating system to come into effect (in January 2008), it will "selectively" use game ratings to allow highly-anticipated games to be sold.

Singapore has banned other games for objectionable content, so the "Mass Effect" episode was nothing new. However, it may be the shortest game ban ever.

Coverage at GameSpot and Game Politics.

ESRB Upholds Manhunt 2 Rating

The ESRB has investigated the Manhunt 2 hacking/content issue (see our previous posthere), and has upheld the game's current M rating. The ESRB concluded that the content that is accessible by hacking the PSP and PS2 versions does not justify restoring an Adults Only rating.

The ESRB acknowledged that when a game receives an unfavourable rating, developers often cover up or disable certain content rather than removing it altogether, and that such practices are acceptable even though the hidden content is often accessible to determined hackers.

Despite the ESRB's findings, prominent retailer Target has decided not to stock either the PSP or PS2 version of Manhunt 2.

The ESRB also said that both the ESRB and Rockstar took approriate action and responded appropriately to the situation. Critics will no doubt regard this a self-serving statement, but cooler heads might view the episode as evidence that the ESRB can indeed regulate the game industry.

Coverage at IGN and at GameDaily News.

Oklahoma Video Game Law Permanently Enjoined

Like similar laws enacted by other states, Oklahoma's law seeking to ban the dissemination to minors of compter or video games containing any depiction of "inappropriate violence", has been found to be unconstitutional by the U.S. District Court for the Western District of Oklahoma. The impugned law was to have gone into effect on November 1, 2006 but a preliminary injunction against it was originally issued in October, 2006.

In ordering a permanent injunction against the proposed law, The Honourable Robin J. Cauthron reasoned that video games are a form of creative expression entitled to protection under the First Amendment and noted the absence of legislative findings, scientific studies, or other rationale to support passage of the law. His Honour further noted that the proposed law was underinclusive - targeting the video game industry but not addressing the depiction of inappropriate violence in movies or books, for example.

Coverage at Gamedaily.

Quebec: More Video Games in French!

The Office québecois de la langue fran¸aise and the Entertainment Software Association of Canada officially made public the agreement reached in connection with the availability in Quebec of French language versions of video games.

The joint press release confirms that since July 2007 new video games sold in Quebec come in bilingual (French/English) or multilingual packaging and that all accompanying literature includes a French version. Moreover, the press release states that from October 1, 2007, computer games will be made available in French when sold in Quebec, if available in French anywhere else in the world. The “francization” of video games will continue progressively until April 1, 2009, when all new video games sold in Quebec, including games for next generation consoles and hand-hand held units as well as computer games, will become subject to the same rules.

Coverage at The Montreal Gazette

Second Life Musings

Here's an article published in the Lawyers Weekly this week, in which we discuss some of the virtual law going on in Second Life. The article was written by freelance writer Luigi Bennetton.

Nasdaq Gives Atari Second Warning

After initially warning Atari, Inc. last month, Nasdaq has again notified the software publisher that it is in danger of being de-listed from the exchange.

The latest warning arose after Atari failed to file its quarterly financial statement when due. A hearing has been set for August 30 to determine whether Atari will be de-listed.

Coverage at Gamasutra and CRN Australia

Take-Two Served with Wells Notice

Take-Two Interactive Software Inc.'s ("Take-Two") troubles with the U.S. Securities and Exchange Commission ("SEC") continue as it was recently served with two "'Wells Notices". Wells Notices are letters issued by the SEC to notify parties that the SEC intends to commence an action against them.

Over the past year several former officers of Take-Two have been convicted or plead guilty to charges of backdating stock options that arose from SEC investigations.

Take-Two responded to the Wells Notice by stating that it would fully co-operate with the SEC.

Coverage at cfo.com and gamedaily.com.

SCHWARZENEGGER WILL BE BACK (OR AT LEAST WILL APPEAL)

Following the issuance of a permanent injunction, California Governor Schwarzenegger's 2005 video game violence law will never go into effect, unless the Governor is successful in his projected appeal.

The Entertainment Software Association reportedly commented that it “is pleased with today's permanent injunction ruling as it cements nationwide judicial consensus that our self-regulatory efforts work and attempts to regulate computer and video games are unconstitutional”.

Coverage at GameDaily BIZ.

ESRB Toughening Up on Advertising Guidelines

The ESRB is continuing to crack down on publishers and developers who aren't complying with Advertising Review Council guidelines when marketing their videogames. 3D Realms is the latest in a string of developers, publishers and retailers to receive warnings from the ESRB regarding violations, and has been given 10 days to comply-or else the ESRB will impose penalties. The ESRB alleges that 3D Realms' advertising has used out-dated ratings icons and has not contained appropriate content descriptors. Scott Miller of 3D Realms has accused the ESRB of acting like a "school yard bully."

The ESRB is the industry body that assigns ratings and enforces advertising guidelines for the interactive entertainment software industry, and lately they've been getting serious about ensuring videogame advertising content is appropriate and accurately reflects the ratings they've assigned to the product. See more coverage on this issue at GamesIndustry.biz .

European Online Ratings System Unveiled

A new rating scheme has been announced to cover online gaming via consoles, PCs and mobile phones. An extension of the Pan European Game Information (PEGI) rating system, the PEGI Online scheme will involve publishers adding a logo to the packaging of affected games. A multi-language information website (www.pegionline.eu) has also been set up to help both parents and players make informed decisions about the games they are playing.

The logo system doesn't specify an age rating. Rather, the logo is meant to demonstrate the publisher's committment to an onlnie safety code and framework contract, including an obligation to keep the gaming website “free from illegal and offensive content created by users and any undesirable links, as well as measures for the protection of young people and their privacy when engaging in online gameplay.“

Coverage at:

Gamasutra

Gamesindustry.biz

UK Burnout Ad Fades Away

EA has been instructed by the British Advertising Standards Authority not to reuse an advertisement depicting a crashed car with the tag line "inner peace through outer violence". The ASA says that the ad (for the game "Burnout: Dominator") was irresponsible because it could been seen to condone a violent lifestyle, anti-social behaviour, or dangerous driving.

Although the ASA's statement was a strong one, it might be a case of closing the barn door after the animals have already escaped -- the game was released in March 2007, and the primary advertising campaign is long over. Nonetheless, EA has said that it will not re-use the advertisement in its current form.

Coverage at Gamasutra and at BBC News.

Game Bill Agreement

The senate and assembly of New York have apparently reached an agreement regarding video game legislation. The legislation would make it a felony to sell violent games to minors. Also, console manufacturers would be required to include parental-control devices in the consoles, and retailers would be required to label violent and obscene games. The legislation has not yet been passed, but should be soon.

Coverage here (Gamepolitics.com)

Manhunt 2 Woes for Take-Two, Rockstar

The original "Manhunt" game caused its share of controversy when it came out. Its sequel (artfully named "Manhunt 2") is experiencing similar problems, so much so that the game's future seems in doubt.

Trouble first arose in Great Britain. The UK's classification board (the BBFC) refused to issue a certificate for the game, meaning that Manhunt 2 cannot be sold in the UK. The BBFC cited the game's "unremitting bleakness and callousness of tone", its "unrelenting focus on stalking and brutal slaying" and its "sheer lack of alternative pleasures on offer to the gamer" in finding that issuing a certificate for the sale of the game would involve a "range of unjustifiable harm risks".

The next blow came from the ESRB, which applied an AO - Adults Only rating to Manhunt 2 in North America. Since most major retailers refuse to carry AO games, it seems that Rockstar and Take-Two are faced with the prospect of limited sales in North America.

Ireland has joined the fray too -- the Irish Film Censor's Office has also banned Manhunt 2, citing its "gross, unrelenting and gratuitous violence".

Rockstar and Take-Two have some available options, including challenging the ESRB's AO classification or modifying Manhunt 2 to bring it within a less onerous (and less controversial) rating level. It's not yet clear whether the game makers will try either of those tactics.

Lots of coverage here , here, and here (GamesIndustry.biz), here (Gamasutra), here and here (GameDaily.com) and, finally, here (GamePolitics).

NY: NO DEPRAVED VIOLENCE FOR YOU, JOHNNY

The New York Assembly has passed legislation which will make it a felony to sell or rent games to minors if the games contain depictions of depraved violence and indecent images. The legislation will also ban sales of consoles that don’t allow parents to restrict the content available through the consoles. The race will no doubt be on to challenge the constitutionality of the legislation. Coverage available at Gamespot.

Incentives Legislation Passed in Texas

After a bumpy ride in the Senate, HB1634 has cleared both the Texas House and Senate, passing legislation designed to provide grant incentives to film, television and video game producers. It is reported by GamePolitics that some senators were unsuccessful in their attempt to restrict which game projects were eligible for grants, based on their content.

coverage at: GamePolitics

Illinois Unconstitutional Law Costly

Illinois Governor Rod Blagojevich's law banning the sale and rental of mature games to minors is reported to “have done significant violence to Illinois’ budget”. The state was ordered to pay the Entertainment Software Association more than $500,000 in legal fees and a report attributed to Quad-Cities Online is said to reveal that Gov. Blagojevich spent about $1 million to appeal the 2005 federal court ruling. Apparently the money to defend the constitutional challenge was taken from the public health department, the state's welfare agency and even the economic development department’s budgets.

coverage at: GameDaily

OPEN LETTER TO NY GOVERNOR RE: VIDEO GAME LAW

New York Governor Eliot Spitzer is preparing video game legislation in order to deliver on one of his campaign promises. As it turns out, one of Governor Spitzer's old classmates is Greg Costikyan, the CEO of Manifesto Games (an independent games publisher). Mr. Costikyan is not impressed by Governor Spitzer's plans, and has written an open letter to Spitzer about video games and video games legislation. Among other things, the letter calls the proposed legislation a "fruitless attempt to infringe on the rights of New Yorkers, a likely waste of taxpayer dollars, and a wholly unnecessary attack on the 21st century’s most vibrant and promising popular artform".

Open letter here http://shorl.com/luhogidupraki
Coverage here: http://shorl.com/kapeguprupredro (GamePolitics)

ANTI-ADDICTION SOFTWARE: JULY 16 DEADLINE FOR COMPLIANCE IN CHINA

Video game operators must comply with new rules imposed by the Chinese government by July 16th. In a move which is bound to have repercussions for game operators, the Chinese government has required that operators implement software controls which restrict the amount of time gamers under 18 years of age are allowed to play video games.

According to the People’s Daily Online, the software will allow video games to be played normally for up to 3 hours following which the number of points that can be earned drops by half for the next 2 hours and then to zero beyond hour 5 of consecutive play time. While this scheme might not be much of a deterrent for avid fans, also having a warning flashed up on the screen ever 15 minutes (following the first 5 hours of play) and needing to register using an identity card in order to play, might prove to be too much for die-hards whether they are under 18 or not.

While video game operators don’t appear to be overly concerned by the requirement to incorporate the "anti-online game addiction” software - that the system also requires every online player to register with his or her real identity does cause some concern because it is likely to have the greatest impact, at least short-term, on sales.

Current coverage at: People’s Daily Online and also at PC-MAC Zone

Previous coverage of this issue at: Games Industry; China View

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

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)

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)

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)

Is Video Game Legislation Constitutional In Canada?

You've all heard a lot about video game legislation in the US. It gets passed, it goes to court, then it gets declared unconsitutional.

"What about Canadian video game legislation?" you ask? Well here's your answer, eh? Check out the article our video game law group recently published in The Lawyers Weekly.

Article here: Video Game Violence Legislation

SOFTWARE GLITCH OR SUBLIMINAL MESSAGE?

The CBC recently reported that Ontario Lottery and Gaming pulled 87 slot machines out of service or physically removed them from casinos following a CBC investigation that uncovered flashing “winning” jackpot symbols in Konami’s “Most Wanted”, “Sergeant Fritter”, and “Billionaires” game machines - each of which appeared to be subliminally encouraging people to keep gambling. According the CBC, there didn’t appear to be anything unusual about the games - that is, until they slowed down the video recordings taken of the games. In slow motion, each of the three games clearly flashed winning jackpot symbols. Other provinces are investigating the matter.

Konami’s response? According to Konami spokesman Steve Sutherland, “it is simply a software glitch that our engineers have identified in four game titles, and we have identified [that] three of those title have been shipped into Canada”. The fourth title, “Sticks and Stones” is sold in the U.S. but not Canada. Whether or not it proves to be a technical problem, U.S. authorities are taking the CBC report seriously and have hired Gaming Laboratories International to investigate Konami slot machines in the U.S.

Marketing in the form of subliminal messages is nothing new. Think back to the controversial Camel cigarette pack. People today are still debating about whether there is a naked man on the pack or not. Did you know that some people have even claimed to see a likeness of Mae West?

It’s all fun and games - until it isn’t.

Coverage at: http://tinyurl.com/275ruy (Gamespot) and at http://tinyurl.com/3dvsgd (CBC)

BLAME CANADA

The International Intellectual Property Alliance, a coalition of US movie, music and software providers (which, most relevantly for our purposes, includes the ESA), has issued a report urging the US government to add Canada to the list of countries that don't properly protect intellectual property (the Axis of IP Evil, as it were). The IIPA complains that Canada's failure to update its copyright legislation to address issues such as technological protection measures, bootleg in-theatre filming of first-run movies, etc.

Canada is currently on the low-priority watch list. If it is moved to the high-priority list, as the IIPA wants, Canada could face trade challenges at the World Trade Organization, plus possible sanctions.

Canada's copyright legislation is indeed a little behind the times. The copyright reform process has been underway for a number of years, but keeps getting derailed by elections and minority governments who (perhaps understandably) have other priorities.

Coverage here: http://tinyurl.com/28lryd (Globe & Mail)
And here: http://tinyurl.com/2s7ssb (Game Politics)

2 GAMES BILLS INTRODUCED IN NY

Two bills dealing with video games were recently introduced in the New York State Assembly. Bill A00547, introduced by Keith Wright, prohibits the sale to minors of certain rated video games containing a rating that reflects content of various degrees of profanity, racist stereotypes or derogatory language, and/or actions toward a specific group of persons. This bill would prohibit the sale to minors of games which depict, advocate or glamorize things such as the commission of violent crimes, suicide, sexual violence, violent racism or religious violence. It would also require retailers to check ID for game buyers who appear to be 30 or younger.

Bill A02024, introduced by Aurelia Greene, prohibits the sale of mature or violent video games to minors, and provides for the display of such videos in a manner to preclude access by minors (in other words, retailers would have to keep mature-themed games in a separate area that minors cannot access).

Both bills have been referred to the NY Assembly's Committee on Consumer Affairs and Protection.

Bill A00547: http://tinyurl.com/yfy66n

Coverage of Bill A00547: http://tinyurl.com/y4ad9f  (GamePolitics)

Bill A02024:  http://tinyurl.com/yc9x6o

Coverage of Bill A02024: http://tinyurl.com/y4ownw (GamePolitics)

DOWNSCALED LEGISLATION PASSES IN DC

Washington D.C. has significantly scaled-back its new video game legislation, called the Consumer Education on Video and Computer Games for Minors Act. Originally the legislation would have prohibited selling M-rated games to minors. This has been dropped due to constitutionality concerns. Now the legislation only requires that a consumer education program be created to help parents understand game ratings. 
Coverage at  http://tinyurl.com/ync9w7  ( GamePolitics.com )

PRODUCT PLACEMENT RISKS IN GERMANY

(This posting was written by Andreas Lober at Schulte Riesenkampff in Germany.)

Publishers' hopes for additional revenues created through product placement in games get a slash back with some recent decisions coming from Germany.

In Europe, many forms of product placement are currently illegal. While the European Parliament favors a liberalization, the German parliament wants to maintain the strict rules currently applicable in Europe's largest economy. 

A Munich court has decided recently that publishers may have to pay back product placement revenues to the advertisers even if the product placement was provided as agreed. Europeans assume that the customer may be mislead by product placement, which is considered as a form of camouflaged advertising.

Publsihers targeting an international audience are therefore well-advised to consider European legislation when designing the product placement, and when drafting the relevant advertising agreements.

The Munich case number is BayObLG München 29 U 4412/05.

JACK'S BACK!

Florida lawyer and anti-video game crusader Jack Thomson has drafted legislation for Massachusetts to block the sale of violent games to minors. This follows a string of similar legislation that has been declared unconstitutional in other states, including (most recently) Louisiana. 

Coverage here http://tinyurl.com/yao7ph  ( GamePolitics.com )

GERMAN CRACKDOWN

Germany's ratings board has refused to rate the upcoming 360 shooter 'Crackdown"?. As a result, the game cannot be sold to minors, can only be sold in person, and cannot be displayed or advertised in stores. As you can imagine, this decision will seriously impair Microsoft's ability to market Crackdown in Germany.  Crackdown has been rated M by the ESRB.

The German rating board has taken a similar approach to 'Dead Rising"? and 'Gears of War"?, as the country seems to be taking a hard line against violent video games.

Coverage at http://www.gamespot.com/news/6163793.html (GameSpot)

NEW LAW IN CHINA FORCES GAME DISTRIBUTORS TO GET PRIOR APPROVAL OF OFFICIAL CENSORS

New law has been introduced in China which requires game distributors to get approval from the country's censors before being able to release new games in China. With over 23 million gamers in China and an estimated market of nearly 100 million Canadian dollars (and climbing), distributors will have to submit to these latest attempts by China to control video game content. According to the BBC, 'companies must also submit monthly monitoring reports, confirming developers have not added forbidden content."? Forbidden content is said to include pornography, excessive violence, sensitive religious material and references to territorial disputes.

Earlier plans by the General Administration of Press and Publication (GAPP) in China to control video gaming and content have included 3 hour limits being imposed on gaming followed by a 5 hour 'cooling off"? period between 3 hour sessions; banning minors from being able to play games on-line which are deemed to be too violent; and embedding technology within games which enforces such restrictive measures.

According to some, these and other measures are being proposed and imposed in an effort to assist in curbing the 'addiction of Chinese youth to video games"? and to censor offensive content. How effective these measures are, remains to be seen.

Coverage at  http://shorl.com/bypapribidroku (Games Industry); http://shorl.com/byfukystujima (China View)

STATES FORCED TO PAY LEGALS

Illinois, $510,000; Washington state, $344,000; St. Louis, $180, 000; Indianapolis, $318,000; Michigan, $182,349"? All in USD!

In April, Michigan's video game law was declared unconstitutional and now the state has been ordered to pay the video industry's legal bill.

Douglas Lowenstein, president of the Entertainment Software Association, is quoted as saying that "In nine out of nine cases in the past six years, judges have struck down these clearly unconstitutional laws, and in each instance ESA has or will recover its legal fees from the states. What's worse, the politicians proposing and voting for these laws know this will be the outcome"?.
coverage at http://shorl.com/hygrutrapifoni (GameDaily)

5 YARDS FOR ILLEGAL Wii BUNDLING?!

Toys "R" Us is said to be under investigation by the Better Business Bureau over its Wii bundling practices. Some Chicago consumers are complaining of having been misled and railroaded into purchasing Wii bundles costing about $200 more than an advertised price (not for a bundle).

The BBB is reported to now be 'apparently challenging Toys "R" Us on its advertising of the Wii"? while Toys "R" Us has apparently told NBC that it was not an advertising problem and that it was simply a "misunderstanding"?, that consumers that wish to return the bundle and purchase the cheaper product will be allowed to so.

Mere bundling is not necessarily illegal.

coverage at http://shorl.com/bobrybigamoda (GameDaily)

LOUISIANA'S VIDEO GAME LAW STRUCK FROM BENCH

Following the temporary injunction he issued against same in August 2006, U.S. District Judge James Brady has declared unconstitutional Louisiana's HB 1381, which was signed into law on June 16, 2006.  

coverage at http://shorl.com/jestakagidrudru (GameDaily)

VIOLENCE AND SEXUALLY EXPLICIT MATERIALS LAWS APPEAL DISMISSED

The Entertainment Software Association's successful first instance challenge of Illinois Governor Rod Blagojevich's 2005 Sexually Explicit Video Games Law was upheld by the US Seventh Circuit Court of Appeals. Governor Blagojevich had not appealed the unconstitutionality ruling of his Violent Video Games Law, which he also signed into law in 2005.
GameSpot reports that 'The appeals court judges also upheld the ruling that the state's plans to put a sticker on all games deemed sexually explicit were unconstitutional"?.

coverage at  http://shorl.com/badestatusubre (GameSpot)

BILL TO DEAL WITH BULLIES UNANIMOUSLY PASSES IN THE U.S. SENATE

Jack Thompson might have lost his court battle against the controversial 'Bully"? video game, but we haven't heard the last of U.S. courts trying to deal with bullies, virtual or not.

Sen. Robert Antonioni, who currently chairs the Joint Committee on Education, is pushing for a new state (Massachusetts)law to create policy to deal with bullies in the public schools. This law proposes to define bullying and to provide guidelines for school boards to develop and enforce anti-bullying policies.

While the bill is not likely to have any impact on video games such as the 'Bully"?, clearly there is a problem with bullying in the U.S. and at least one Senator is trying to do something about it.

The bill unanimously passed in the Senate and is expected to pass in the House next spring.

Coverage at  http://shorl.com/fotrakebisahe  (CBS4 Boston)

US ANTI-DILUTION LAW

Further to our recent post about the ESA and the 'dilution"? or 'tarnishment"? of trade-marks, the Trademark Dilution Revision Act of 2006 recently became law in the United States. The new Act, which was a response to a US Supreme Court decision dealing with trade-mark dilution, expressly gives owners of 'famous"? marks the right to prevent the use in commerce of a mark or trade name that is likely to cause dilution by blurring or dilution by tarnishment to the famous mark. The Act confirms that dilution can occur regardless of the presence or absence of actual or likely confusion, of competition, or of actual economic injury.

'Dilution by blurring"? means an association arising from the similarity between a mark or trade name and the famous mark that impairs the distinctiveness of the famous mark. 'Dilution by tarnishment"? means an association arising from the similarity between a mark or trade name and the famous mark that harms the reputation of the famous mark.

The new legislation should make it easier for owners of famous trade-marks in the US to bring and prosecute dilution claims. As discussed in our previous post, there is not an equivalent law in Canada. However, certain parts of the Canadian Trade-marks Act (those dealing with the 'depreciation of goodwill"?) have been equated with US dilution principles.

Text of Trademark Dilution Revision Act of 2006: http://shorl.com/hyhibadogryvu

THE TAX MAN COMETH!

Ever had the feeling that you pay too much tax? Ever escaped to your favourite MMO to avoid the realities of everyday life? Well, a taxing reality may soon catch up with gaming worlds and their economies at least in the US.

A senior economist for the Joint Economic Committee of the U.S. Congress has been quoted as stating that they are considering whether the sale of in-game goods should be taxed and that they are at 'the preliminary stages of looking at the issue and what kind of public policy questions virtual economies raise -- taxes, barter exchanges, property and wealth"?.

The MMO Second Life is cited in the GameDaily article referenced below as an example of a large in-game economy based on the purchase of virtual items like clothing and vehicles, which generates as much as a half million dollars in sales a day.

Will Canada follow suit? Stay tuned.

coverage at http://shorl.com/gevugrabebofro (GameDaily)

For more on the importance of MMOs' economies and the interest that they have generated IRL (both in business and with the tax authorities) you should read The New York Times article at  http://shorl.com/buvelidomapru (registration required)

PS3 SCALPING

Recently several listings appeared on eBay for PS3 pre-orders. The owners of the listings, who claimed they had secured PS3 pre-orders from various retailers, were offering the pre-orders for sale at inflated prices. eBay removed the listings, presumably because the listings violated eBay's requirement that the pre-ordered product be available within 30 days.

This is only the start of PS3 availability issues.  We're particularly interested in seeing how Sony handles the initial sales of its PS3s--in light of how Sony dealt with the launch of the PSP.

Sony's release of the PSP happened in selected countries, which meant the PSP wasn't initially available in some areas such as in Europe. Sony tried to preserve its scheduled launch dates by taking a hard approach against European sales.  In fact, Sony went as far as to sue several retailers who were selling imported PSPs in the UK. These unauthorized sales are called 'parallel importing"? or 'grey marketing"?, and each country deals with them differently.  We understand that EU law might actually allow manufacturers to stop any these sales if the products were originally sold in countries outside the EU.  The question is  will Sony take the same approach with the release of the PS3?     
Coverage of eBay auction here   http://www.shorl.com/fesirajipipru (Gamespot.com)

BULLY NO NUISANCE

After an unprecedented judicial review to determine if Bully was a public nuisance, some say 'a short gaming session"?, a judge has cleared it for sale next week without any restrictions.

coverage at http://shorl.com/hegrustefrydogri (GameDaily)

BULLY A PUBLIC NUISANCE?

Florida's Third Court of Appeal has ordered that Take-Two's Bully be reviewed by a judge to determine if it should be deemed a 'public nuisance"?. If found to be a public nuisance, sales of Bully to minors will likely be subject to an immediate temporary ban.  Bully is scheduled to be offered for sale to the general public next week.

coverage at  http://shorl.com/fapydrivujuvi (GameDaily)

OKLAHOMA'S VIDEO GAME LAW BLOCKED

A Federal District judge has issued an injunction temporarily blocking the coming into force of Oklahoma's video game law on November 1st. 
The provisional injunction foreshadows that the law is likely to ultimately be declared unconstitutional.

 
http://shorl.com/biratestodigu (GamePolitics)

U.S. ATTACKS ONLINE GAMBLING

The Unlawful Internet Gambling Enforcement Act was unexpectedly passed by Congress on Saturday.  
In general, the bill prohibits banks and credit card issuers from processing payments from customers in the United States for internet gambling.  

Coverage at  http://shorl.com/duletredrufeso (CTV.CA)

KONAMI WINS EUROPEAN PATENT APPEAL

The European Patent Convention says that schemes, rules and methods for playing games, and programs for computers, cannot be patented. However, the European Patent Office has taken a broad approach to that restriction, such that certain patent claims have been allowed even though they seem to fit within the list of unpatentable material.

Most recently, the EPO's Technical Board of Appeal has allowed certain claims in a patent application by Konami relating to a guide system for identifying player-controlled characters and the direction of the nearest team-mate.

The EPO examination division originally rejected the claims because the only portion that was arguably patentable under the EPC was anticipated by prior art. The Technical Board of Appeal overturned that decision and ordered that the patent be granted.

Whether game software is patentable is a tricky question "? different jurisdictions take different approaches to whether software or business methods are patentable, and there are many philosophic debates about whether software or business methods should be patentable at all. The EPO decision gives Konami certain patent protection in Europe, and may open the door for additional game-related patent applications in Europe.

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

Text of the EPO Decision http://shorl.com/fyjusumubryba

 

CLINTON'S CAMRA

The U.S. Senate has passed the Children and Media Research Advancement Act ('CAMRA"?). CAMRA aims to foment research on the effect of modern media (including the Internet and video games) on children.  Senator Clinton, one of CAMRA's main supporters, is reported to have stated that  CAMRA "is one more step in the right direction" and that it "will provide parents with better, more current facts about the impact of this new media dominating our kids' lives."

 
coverage at http://shorl.com/guprupohalagi  (GameDaily)

VIOLENCE IN MONTREAL

25-year-old Kimveer Gill is reported to be responsible for the murder of one Dawson College student and injuring 19 others. Not to mention scaring and scarring the student population and bringing tears to the eyes of my hometown. His death at the hands of the police does not assuage our collective sorrow. 
Talking about this tragedy, Prime Minister Harper is said to have stated that 'debates are sure to unfold about the government's role of censorship in video games and the monitoring of the Internet"?. I agree with his thinking. Let's start a debate. Here are my two cents worth. 

News reports so far seem to confirm that the Dawson population helped each other, that the police acted prudently and quickly and that emergency personnel succored those in need rapidly. I'm sure that with time we might find flaws in how things were handled, to be denounced and addressed.   

Aside from legislation that dictates the duties of police and emergency personnel, Art. 2 of Quebec's Charter of Human Rights and Freedoms provides that every human being whose life is in danger has a right to assistance and imposes a legal obligation on every person to come to the aid of the person in danger, personally or by calling for aid, unless this would result in danger for the person assisting or someone else. 

So the Good Samaritan rule of the Quebec Charter was respected. 

What about Kimveer Gill? Did we fail to assist him? Should we have identified him as someone in need of aid? And if so, how should we have helped him? Would the censorship of video games and the monitoring of the Internet have helped him? Would we also need to consider censoring the music groups that Kimveer listened to (e.g. Marilyn Manson) or the websites that he frequented? What about Canada's gun register and gun laws? Should we revisit them? 

It's a good thing that this is just a video game law blog. I don't have to pronounce myself on whether we failed to help Kimveer or not. I will say, however, that, in my opinion, the levels of censorship/monitoring and of government intervention that would be required to prevent crimes such as Kimveer's would be right out of 1984. Are we willing to give up so much freedom?

 
coverage at  http://shorl.com/gylybryvokeve (Sympatico News)

THE FUTURE IN-GAME ADS

In what is said to be the first such deal of its kind, Double Fusion has partnered with Emergent for the integration of their in-game ad technology to Gamebryo Element game engine and toolkit. Double Fusion's stated goal is to allow advertisers to "move 'beyond the billboard' to employ 3D interactive objects, video, interactive ads, and other exclusive and unique advertising formats". 

Certain Canadian jurisdictions have enacted legislation prohibiting traditional commercial advertising directed at minors (the notion of what is a minor is specifically defined in said legislation - for example, in Quebec, the trigger age is 13). 

To determine whether or not an ad is directed at a minor, legislators have taken into account several factors including 

 (a) the nature and intended purpose of the goods advertised; 

 (b) the manner of presenting such advertisement; 

 (c) the time and place it is shown. 

We will certainly keep an eye on how legislators and the courts deal with this new form of advertising. 
coverage at  http://shorl.com/jamubrubrebryve (GameDaily)

TAKE-TWO TROUBLES

Take-Two should be celebrating last quarter's jump in its net revenue to $240 million. Instead, Take-Two is reported to have announced the delay of its final earnings report due to an internal investigation into its granting of stock options. Moreover, the company is also said to have disclosed having received additional grand jury subpoenas issued by the District Attorney of the County of New York 'requesting documents...regarding stock options and other equity-based compensation."

coverage at http://shorl.com/degrovimubregre (Gamespot)

INJUNCTION ISSUES AGAINST LOUISIANA

District Judge James Brady has issued a parish-limited preliminary injunction against the State of Louisiana's Violent Game Law. Judge Brady found that "social science evidence demonstrating that violent video games are harmful" to be "tenuous and speculative" and stated that without the injunction "the statute will have a chilling effect on both video game developers and retailers."
 The Entertainment Merchants Association is reported to have said about the injunction

"We are gratified that Judge Brady has granted a preliminary injunction effective in the East Baton Rouge Parish to protect retailers from this blatantly unconstitutional law ["?] We are optimistic that District Attorneys throughout the state will follow the constitutional guidance in Judge Brady's decision and abstain from attempting to enforce this law pending further action in this case."?

coverage at http://shorl.com/fyvyhujoristi (Gamasutra)

ILLINOIS GETS SPANKED

The Entertainment Software Association has announced that the video game industry was successful in forcing the State of Illinois to pay its legal bill for challenging a law that the judge said it knew to be unconstitutional from the outset. Kennelly J. issued the order against Illinois "for its unconstitutional effort to enact a law banning the sale of violent video games".

The Judge is further reported to have stated "As we said from the outset of this debacle and repeatedly since then, instead of squandering taxpayers' money on frivolous lawsuits and attempting to enact clearly unconstitutional laws, we encourage policymakers to focus their resources on a cooperative effort with industry, retailers, parent groups and health groups to work together to educate parents about the Entertainment Software Rating Board (ESRB) ratings and content descriptors, and the parental controls available in all next generation consoles to help parents make sound choices about the games their kids play."

The total bill?  US$510,528.64.
coverage at http://shorl.com/gimigrostubrojy (GameDaily)

GAMESTOP SUED OVER TIME

Six managers have filed a class action suit for unpaid overtime, under the Fair Labor Standards Act (FLSA). They seek to have managers denied overtime since 2003 because they were classified under the FLSA as 'executive, administrative, or professional capacity" to opt into the class action and obtain redress (including overtime, interest, damages and lawyers' fees).  They claim to have been forced to work 50 to 60 hours a week without proper compensation.

GameStop has asked that the lawsuit be dismissed because of a similar 2004 case pending against Electronics Boutique.
coverage at http://shorl.com/basahalesara

TRUTH IN VIDEO GAMES?

US Representative Cliff Stearns has introduced a new bill (HR 5912) titled the 'Truth in Video Game Rating Act"?. The bill, which is directed at the Federal Trade Commission, prohibits activities such as rating games only on partial content (i.e., the ESRB will have to play games in their entirety before rating them), withholding content for rating, and gross mischaracterization of content. It also calls for a study of the ESRB's rating system, whether there should be an independent rating system, etc.

The Text of Bill HR 5912 is here .

MINNESOTA GAME LAW BLOCKED

Back in May, Minnesota introduced a law making it a petty misdemeanour for a person younger than 17 to rent or purchase a video game with an M or AO rating (see here ). As it has done in many other states, the ESA soon brought a constitutional challenge to the new law (see here ).

A US court has now blocked the law, saying that it violates freedom of speech rights. The judge also commented that Minnesota did not provide 'empirical proof"? that violent video games cause psychological harm to minors.

Coverage at http://shorl.com/fadrodabomyfa (Game Spot)

Game Politics has a link to the decision here .

TABLE OF VIDEO GAME CASE LAW

We're pleased to report that our blog now contains a table of video game law cases.  It's a work in progress (we have a bunch more cases to add) but we're so excited that we just can't wait to share.  So here's the link  http://www.davis.ca/community/blogs/video_games/files/blogtable.htm

Keep checking back for updates.  There's also a link on the homepage of the blog. 

INSOMNIAC'S PRICE WEIGHS IN AGAINST LOUISIANA

Insomniac Games' president, Ted Price, is said to have filed a brief supporting the Entertainment Software Association's and the Entertainment Merchants Association's judicial challenge of Louisiana's violent video games law. The brief focuses on the broadness, ambiguity and vagueness of the law.

coverage at http://shorl.com/dyprogiholeri (gamedaily)
full brief at http://shorl.com/babrosokidrofy (gamepolitics)

VIDEO GAMING AS AN ADDICTION

Smith& Jones Addiction Consultants is opening Europe's first detox clinic for video game addicts in Amsterdam.

It is reported that about a dozen clinics already exist in the United States and Canada, and even one in China, as problem gaming gains recognition as an ailment requiring treatment.  According to the article referenced below, Keith Bakker, director of Smith& Jones Addiction Consultants, has stated that although video games may look innocent, they can be as addictive as gambling or drugs.

Others, like Richard Wood, a professor of International Gaming Research Unit at Nottingham Trent University, are reported to be sceptical about viewing heavy gamers as addicts.

The medical debate on whether heavy gaming can be deemed an addiction will necessarily have an impact on the legal field. Already violence in video games is being used to explain, if not justify, the violent actions of players. Will video gaming addiction stand as a defense, or as a mitigating factor, in criminal law? What about employment law? In many jurisdictions some addictions are recognized as a handicap protected by human rights and employment standards legislation. Will an employer have to accommodate and offer treatment of an employee's video gaming addiction?

coverage at  http://shorl.com/fugipralihyve

FTC HOT COFFEE SETTLEMENT ANNOUNCED

The US Federal Trade Commission announced today that it has reached a settlement with Take-Two and Rockstar Games regarding GTA San Andreas.

GTA San Andreas sparked enormous controversy last year when it was revealed that the game contained hidden sexual content. As a result, the game was re-rated from M to AO by the ESRB, and there was great public and political outcry (and not a few lawsuits).

The FTC complaint alleged that Take-Two and Rockstar undermined the game industry ratings system and deceived consumers by failing to disclose that the game contained unused but potentially viewable nude images and a disabled but potentially playable sexual mini-game.

Highlights of the proposed consent agreement (which is subject to public comment for 30 days, after which the FTC will decide whether to make the agreement final) include

  • Take-Two and Rockstar will clearly and prominently disclose on product packaging, and in any promotion or advertisement, content relevant to the rating, unless that content has been sufficiently disclosed in prior submissions to the rating authority.


  • The companies cannot misrepresent the rating or content descriptors for an electronic game.


  • The companies must establish, implement and maintain a comprehensive system reasonably designed to ensure that all content in an electronic game is considered and reviewed in preparing submissions to a rating authority.


  • Once the order becomes final, the companies will be subject to civil penalties of up to $11,000 per violation.


The agreement does not deal a great blow to Take-Two and Rockstar (who have already incurred large costs in dealing with the Hot Coffee incident), but imposes strict requirements regarding how the companies' video game content is rated.

FTC Statement at http://shorl.com/fafripastytaso

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

and at http://shorl.com/haprygygrebrive (GameSpot)

HERE WE GO AGAIN….

Just a few days ago we reported that Minnesota had passed some novel video game legislation (novel in the sense that it targets under-aged purchasers of M or AO-rated games, whereas most other states target retailers).

Guess what? The Entertainment Software Association has filed a lawsuit against the state. They say kids have First Amendment rights too. We'll see about that"?
Coverage at http://www.shorl.com/hubigrelahuvi (Gamespot)

CHINA BANS MORE VIDEO GAMES

China's Ministry of Culture has identified four games to be banned because they contain pornographic images, violent content or gambling. The games are Blood Rayne II, Obscure, AV Mahjong, and Kong Bu Lao Long (Horrible Cage). The Ministry of Culture requires cultural departments at the provincial levels to ban the games.

Coverage at http://shorl.com/fededrinabaso (China TechNews)

THIS IS DOPA!

Last May 9 House Rep. Michael Fitzpatrick introduced the Deleting Online Predators Act with the view of amending the Communications Act of 1934, targeting access by minors of commercial 'social-networking"? Web sites that allow users to create 'Web pages or profiles and also offer a discussion board, chat room, or email service"?. DOPA would require libraries, elementary and secondary schools to restrict minors' access to social-networking Web sites or chat rooms through which they may access sexual material or be subject to sexual advances. Access for educational purposes, under the supervision of an adult, would be allowed. Sites like MySpace.com and LiveJournal.com would likely be restricted. Some say that Microsoft's Xbox 360, which permits in-game chat, would also be indexed under DOPA.

coverage at  http://shorl.com/gehademefeva

full DOPA text at http://shorl.com/hemijojifany

MARYLAND PASSES VIDEO GAME LAW

The Maryland House and Senate unanimously passed its video game bill into law on May 2. It comes into force on October 1, 2006. Surprisingly, the Entertainment Software Association not only failed to challenge this bill but actually supported it.  This may be because the new law does not deal with video game violence; instead it prohibits the display of an obscene video game to a minor. The new law centers its definition of what is 'obscene"? around nudity and sex, to the exclusion of violence. Some say that this law is merely an extension of existing laws barring minors' access to pornography.

 
coverage at http://shorl.com/bohetrahifame

TENNESSEE'S ANTI-VIOLENT VIDEOGAMES BILL WITHDRAWN

Tennessee's Senator Kilby has withdrawn his anti-violent videogames bill over constitutionality concerns. In brief, his bill proposed the ban of the sale of violent videogames, regardless of consumer age. The bill was viewed as non-viable given that less draconian bills have been struck in other states.

The battle over censorship continues, with judicial challenges by the industry and attempts by governments to control videogame content or distribution. Minnesota, for example, has just passed a new bill proposing fines for underage consumers found to be knowingly renting or buying M or AO rated software.

 
coverage at http://shorl.com/bidupryripropo

MINNESOTA BILL TARGETS UNDERAGE BUYERS

The Minnesota House of Representatives has passed a bill which targets the customer side the video game retail transaction "? the bill makes it a petty misdemeanour for a person younger than 17 to knowingly rent or purchase a video game with an ESRB rating of M (Mature) or AO (Adults Only). Violators will be subject to a fine of up to $25.

Jeff Johnson, one of the bill's authors, says that video games are full of 'absolutely disgusting stuff"?. Mr. Johnson, who is running to be Minnesota's Attorney General, acknowledges that the bill is open to constitutional challenge.

Information on Minnesota Bill SF0785: http://shorl.com/gofrividrehabu

Coverage at http://shorl.com/dujugostosapry (GameSpot)

LOUISIANA GIVES IT A GO

Louisiana's house of representatives has now passed a bill that would prohibit the sale of potentially harmful video games to minors. The next step is for the bill to proceed before the senate for approval. 

If approved, the constitutionality of the bill will unquestionably be challenged in court.  If the results in St. Louis , Illinois , Michigan and Calfornia  are any indication, this bill will be in for a rough ride.

Coverage at  http://www.shorl.com/hutybrajypraro (Gamasutra).

 

CALIFORNIA LEGISLATION – UNCONSTITUTIONAL?

California's video game legislation, which was due to come into force on January 1, 2006, is under review by the federal court. The legislation restricts the sale of violent games to minors and requires manufacturers, distributors, importers, and retailers to put extra labels on such games.

The Video Software Dealers Association and the Entertainment Software Association have challenged the legislation, claiming that it violates the First Amendment's freedom of speech protections by restricting access to games solely based on expressive content.

Last year, the US District Court for the Northern District of California granted a preliminary injunction stopping the implementation of the legislation.  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.

The court is still considering the constitutionality of the legislation, but there are indications that the judge believes the legislation is unconstitutional. For example, the judge said that the legislation must be judged according to the 'strict scrutiny"? standard which protects free speech rights. 

A final ruling is expected soon.
Coverage at  http://www.shorl.com/bagrafostosupro (cbs5)

NEW YORK AG WEIGHS IN ON VIDEO GAMES

Eliot Spitzer, New York's incredibly active Attorney General and Democratic candidate for Governor, has spoken out about video game regulation. Mr. Spitzer stated that a government-controlled uniform video game rating system is required, and that the current ESRB self-regulatory system is ineffective and largely ignored. He also voiced his support for the various attempts to create state legislation regulating video games, although he acknowledges that most such legislation has been struck down on constitutional grounds.

Not surprisingly, industry bodies such as the Video Software Dealers Association and the Entertainment Software Association, as well as the ESRB itself, have made statements in reply to Mr. Spitzer's comments.

Coverage at http://shorl.com/fodyhetybime (GamesIndustryBiz)

and at http://shorl.com/duhinedrystibe and http://shorl.com/gonolababryvo (Gamasutra)

INJUNCTION ISSUED AGAINST FORMER UBISOFT BOSS

Martin Tremblay, formerly the head of Ubisoft in Quebec, now the President Worldwide Studios of Vivendi Games, has been provisionally enjoined by Mongeon J.C.S. of Quebec's Superior Court from, directly or indirectly, competing with Ubisoft and ordered to immediately cease working, directly or indirectly, within Canada, the United States and Mexico, for himself or any third party, in any business which manufactures or commercializes video products that may compete with products sold, manufactured or developed by Ubisoft. The provisional injunction was issued based on Martin's contract with Ubisoft, which contained a non-competition covenant.

Unless it is renewed, or an interlocutory injunction or safeguard order is issued, the provisional injunction will only remain in force until 5:00 PM on Tuesday May 9, 2006. 

The irony of it is that Tremblay was the principal supporter behind Ubisoft's recent clashes with EA over the use of non-competition clauses.  

coverage at http://shorl.com/dururededrehy

CHINESE COURT UPHOLDS CONVICTION FOR STEALING VIRTUAL PROPERTY

Last year a Chinese court convicted a man for selling passwords and in-game property which he had stolen from players of the online game "Da Xihua Xiyou". Another court has just upheld the initial decision, stating that the robbed players had spent time, energy and money acquiring and adding value to their virtual property. The accused had sold the stolen (virtual) goods for about $500; he was fined about $620 for his illegal activities.

Coverage at http://shorl.com/henumuhyropri (ZDNet)

TENNESSEE GETS IN LINE

Senator Tommy Kilby of Tennessee has filed a bill (SB 3981) aimed at preventing the sale or rental of 'extremely violent"? video games in the state.

What is meant by 'extremely violent"?, you ask? Most of the bill is taken up with various definitions that answer this question. Generally, a video game will be "extremely violent" if the player is able to kill, maim, dismember or sexually assault an image of a human being (A) in a way that a reasonable person would find appeals to a 'deviant or morbid interest"?, is patently offensive to prevailing community standards, and causes the game as a whole to lack serious literary, artistic, political or scientific value; or (B) enables the player to virtually inflict serious injury upon images of human beings, especially authority figures, in a manner which is especially heinous, cruel or depraved in that it involves torture or serious physical abuse to the victim. And before you ask, 'authority figure"?, 'cruel"?, 'depraved"?, 'heinous"?, 'serious physical abuse"? and 'torture"? are all defined as well. Presumably dictionary definitions of 'deviant"? and 'morbid"? will suffice, as the bill does not define those terms.

The bill makes it a Class C misdemeanour to rent or sell an extremely violent video game. If passed, the bill is set to take effect on July 1, 2006.

Given the bill's broad restrictions (and despite its careful definitions), it will likely be challenged on constitutional grounds, as has happened in other states, if it becomes law.

Coverage at http://shorl.com/byprubribradebre (GameSpot)

Text of Bill SB3981 at http://shorl.com/hokohidadrotu

UK VIDEO GAME BILL INTRODUCED (AGAIN)

A British MP has re-introduced a private member's bill aimed at limiting the sale of violent video games. The MP, Keith Vaz, has been actively campaigning for a video game crackdown since a murder two years ago which some link to the game Manhunt. He introduced a similar bill last year, which did not get past first reading.

The bill seeks to increase the size of the age certificate on video games and to require more detailed descriptions of the content which led to a game's rating.

Coverage at http://shorl.com/bubrogypasyta (The Guardian)

INAPPROPRIATE VIOLENCE

You may recall that in late January we covered Utah's violent video games bill (HB 257). Well, it was passed overwhelmingly (56-8) by a vote in the Utah House of Representatives last week. The bill, which seeks to stop access to 'inappropriate violence"? by minors, will now be examined by Utah's Senate. The constitutionality of the bill remains in question.

our previous coverage is here

current coverage at  http://shorl.com/buprygumidreki

P.S. Game Politics has developed a video game legislation tracker, to help keep an eye on things, at  http://www.gamepolitics.com/legislation.htm

CHALLENGE TO MICHIGAN VIDEO GAME LAW STILL ALIVE

(a case summary)

The Governor of Michigan signedMichigan 2005 Public Act 108into law in September 2005, to go into effect on December 1, 2005. The Act is designed to prohibit the dissemination, exhibiting or displaying of sexually explicit (under Part I of the Act) and ultra-violent (under Part II) video games to minors without the consent of their parents or guardians.

The Entertainment Software Association, the Video Software Dealers Association and the Michigan Retailers Association immediately challenged the constitutionality of the Act, and obtained a preliminary injunction in November 2005 preventing Michigan from enforcing Part II of the Act (the part dealing with violent games).

The defendants (Michigan's Governor and Attorney General, and the Wayne County Prosecuting Attorney) then moved to dismiss the plaintiffs' case. The US District Court for the Eastern District of Michigan issued its decision on January 19, 2006.

The defendants first argued that a federal district court did not have jurisdiction over claims against an unconsenting state. However, there is an exception allowing suits against state officers in their official capacities if they have some connection with the enforcement of the legislation in question. The Court found that the plaintiffs and their members faced an immediate risk of state-wide enforcement of the Act and its 'likely unconstitutional"? restrictions on speech. Since both the Attorney General and the Governor had the power and duty to enforce Michigan's laws, the case fell within the exception. Further, the Act would limit freedom of speech regardless of whether any prosecutions or enforcement actions were brought, in the form of self-censorship and chilling of speech. Because the mere existence of the Act would violate First Amendment (i.e., free speech) rights, the plaintiffs could challenge the Act before anyone was charged under it. The Court therefore upheld this portion of the plaintiffs' complaint.

Second, the defendants attacked the plaintiffs' claim that the Act violated due process by delegating the power to determine what video games are subject to the Act's restrictions to a private organization (the ESRB) without any accompanying legislative standards. The Court rejected the defendants' arguments here as well first, the Court had jurisdiction because the plaintiffs were claiming violations of due process under the US Constitution; second, the Act clearly refers to an 'entertainment industry rating system"? established by the ESRB, which constitutes a delegation to a private, voluntary rating system that is not subject to judicial review. The Court upheld this portion of the complaint as well.

Finally, the Court dismissed another portion of the plaintiffs' complaint; the plaintiffs consented, as their constitutional claims were covered elsewhere in the complaint.

Therefore the Court upheld the plaintiffs' primary arguments. The case will continue.

Decision isEntertainment Software Associationv.Granholm, 2006 U.S. Dist. LEXIS 2792 (January 19, 2006)

WE GOT GAME

Sault Ste. Marie's Algoma University College's Masters programme in gaming has been approved by the Ontario government. The College will be offering the MSc Computer Games Technology curriculum from the University of Abertay Dundee, Scotland, in exclusivity. Algoma U will be the first Canadian University to offer a Master of Science in Computer Games Technology programme.

coverage at http://tinyurl.com/7jrmg

GAMER PARENTS NEW POLITICAL LOBBY GROUP?

A new study by the Software Entertainment Association shows that 35 percent of American parents play video games, 73 percent of 'gamer parents"? are regular voters, and 85 percent of all voting parents (whether gamers or not) say that parents and not government, retailers or game publishers should take primary responsibility for ensuring that children are not exposed to inappropriate game content. Finally, 60 percent of parents say that it is not government's role to regulate game sales to try to protect children from inappropriate content (36 percent of parents said that itisgovernment's role to regulate game sales).

The ESA is understandably pleased with this survey, and claims that ongoing government proposals to regulate video games is not necessarily what American voters desire.

ESA News Release at http://shorl.com/fanasyfrobeka

Coverage at http://shorl.com/datovikegijy

Good Violence -vs.- Bad Violence?

 Another attempt to regulate bad video game content by our neighbours. Utah's Bill HB 257 aims to modify the Criminal Code and stop access to 'inappropriate violence"? by minors. The Bill toes the line of proposed or existing Federal and State legislation, some of which has been declared inoperative or unconstitutional.

The Bill defines 'inappropriate violence"? as

'Any description or representation, in any form, of violence when it

"(a) is patently offensive to prevailing standards in the adult community as a whole with respect to what is suitable material for minors;(b) taken as a whole, does not have serious literary, artistic, political, or scientific value for minors;(c) is glamorized or gratuitous;(d) is graphic violence used to shock or stimulate;(e) is graphic violence that is not contextually relevant to the material;(f) is so pervasive that it serves as the thread holding the plot of the material together;(g) trivializes the serious nature of realistic violence;(h) does not demonstrate the consequences or effects of realistic violence;(i) uses brutal weapons designed to inflict the maximum amount of pain and damage;(j) endorses or glorifies torture or excessive weaponry; or(k) depicts lead characters who resort to violence freely."

If passed, the Bill would make it illegal for anyone to show, sell or give games, movies, or any other media containing inappropriate violence to minors and punishment would be harsh.

Utah's Office of Legislative Research and General Counsel declares in its Legislative Review Note that 'Based on limited legal review, this legislation [i.e. the Bill] has not been determined to have a high probability of being held unconstitutional"?.

Utah is joined by Iowa, which is considering similar legislation tabled this week.
Coverage at http://shorl.com/guhograbrapryba

DISCRIMINATION IN THE MMO WORLD

'Wanna join our group? Then prove you can speak English."? 

Chinese-speaking World of Warcraft (WOW) players are complaining that they're being discriminated because they can't speak English. They say other WOW players won't let them joint their groups because they assume non-English speaking players aren't true players--they're gold-miners who are earning booty for their employers or themselves to auction. Is there any potential liability here?

Canada and most of its provinces and territories have human rights legislation that prohibits discrimination on various grounds such as race or ancestry. The legislation applies to specific activities, such as employment, tenancy, publishing and providing services to the public.  

It's often OK to discriminate on other grounds that aren't prohibited by the legislation (for example, you can probably discriminate against people with green hair, as long as you equally discriminate between men and women with green hair). So the first issue is whether Blizzard (the publisher of WOW) or the other players are discriminating on the basis of any prohibited ground. Here, the basis of discrimination is language, not race or ancestry. This will likely make it difficult for the legislation to apply because language isn't a named ground of discrimination.  But that said, the Supreme Court of Canada has previously read-in unnamed grounds of discrimination (such as sexual orientation), so there's always an argument that language discrimination should be read-into the legislation.

The second issue is whether Blizzard or the English-speaking players are discriminating in the course of any of the specified activities. Here, the only activity that appears to apply is 'providing services to the public"?. The players probably aren't providing services to the public, and although Blizzard is probably providing services to the public, it's not the one doing the discrimination.

In short it would probably be tough to argue that the discrimination is prohibited by Canadian law. That said, it doesn't mean the discrimination is acceptable. There may be other ways to address it. For example, Blizzard has a policy prohibiting the use of language that promotes racial or ethnic hatred. And Blizzard's terms of use are broad enough that Blizzard might be able to argue that the discrimination is prohibited by contract

Coverage of the WOW discrimination is here  http://www.shorl.com/bafokafavufe

XBOX PIRATES AND MODDERS ARE INDICTED

The owners of a video game store in California were recently indicted for allegedly copying XBOX games and installing them on modded consoles. 

Video game piracy is obviously an infringement of copyright, and it might also be a criminal offence. Likewise, circumventing copy protection technology can violate US copyright law. Canada does not yet have anti-circumvention legislation; however, Canada's proposed amendments to the Copyright Act do currently contain anti-circumvention provsions.

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

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

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

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

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

 

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

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

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

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

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

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.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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 .

 

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

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

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

 

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

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

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

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

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

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

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

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

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

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

 

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

POSTAL 2: GOING, GOING, GONE!

First-person shooter "Postal 2" has been banned by the Office of Film and Literature Classification in New Zealand, in part because of the game's use of urine in association with degrading and dehumanizing conduct. We have no doubt that the decision was a result of a draining investigation conducted by some real video game whizzes. The effect of the ban is that anyone who supplies, distributes, exhibits, displays, or advertises the game in New Zealand could be subject to significant fines or imprisonment. 

Coverage at http://shorl.com/dyhygytymeji

NEXT UP ILLINOIS

On a similar note, Illinois is considering legislation to regulate the sale and rental of explicit video games. The legislation would make it a crime to sell or rent such games to minors.

Coverage at http://shorl.com/bypravafribely

 

SOFTWARE IS GOOD

The Supreme Court of India recently ruled that off-the-shelf computer software is a "good", which means it's subject to sales tax in India. The plaintiff unsuccessfully argued that software is primarily knowledge and should not be taxable.

Coverage at  http://shorl.com/fegeburebryla

Violence In Video Games Protected By The First Amendment

(This is an archived case summary)

Washington State introduced legislation penalizing the distribution of violent video games to minors. Video game manufacturers, distributors, retailers and software associations challenged the legislation on the ground that it violated the First Amendment right to free speech. The bill prohibited the rental or sale to anyone under age 17 of computer and video games containing depictions of violence against law enforcement officers. The law in question sought to regulate the plaintiffs' speech based solely on the content of video games (as opposed to the time, manner, and place in which it is prohibited). Content-based regulations are presumptively invalid and are rarely permitted.

Protected Speech

In the United States, the party claiming protection from the First Amendment must show that the conduct at issue expresses some idea or thought. Communications designed merely to entertain, rather than to impart information or debate public affairs, are protected by the constution. In evaluating a person's claim that conduct is expressive, a Court considers "whether an intent to convey a particularized message is present, and whether the likelihood is great that the message would be understood by those who viewed it" (Nordykev.King, 319 F.3d 1185, 1189 (9th Cir.2003).

The Court in this case stated that where the early generations of video games may have lacked the requisite expressive element, being little more than electronic board games or computerized races, current games involve intricate, "if obnoxious," story lines, detailed artwork, original scores, and a "complex narrative". The Court found that these games are expressive and are protected by the First Amendment.

The defendants argued that even if the video games captured by the legislation are expressive, they fall into one of the few categories of speech that have been historically unprotected, namely, obscenity. Though the Court recognised that graphic depictions of depraved acts of violence (such as the murder, decapitation, and robbery of women in Grand Theft Auto Vice City) fall well within the more general definition of obscenity, it nevertheless held that when used in the context of the First Amendment, the word "obscenity" means material that deals with sex. The U.S. Supreme Court has held that state statutes designed to regulate obscene material must be drafted narrowly to cover only "works which, taken as a whole, appeal to the prurient interest in sex, which portray sexual conduct in a patently offensive way, and which, taken as a whole, do not have serious literary, artistic, political, or scientific value" (Miller v. California, 413 U.S. 15, 18 n. 2, 93 S.Ct. 2607, 37 L.Ed.2d 419 (1973)).

The defendants argued that the Court should expand the definition of obscenity to include graphic portrayals of violence. The Court held that historical justifications for the obscenity exception do not apply to depictions of violence. The Court reasoned that the punishment of lewd speech has "very little, if any," impact on the free expression of ideas, whereas depictions of violence "have been used in literature, art, and the media to convey important messages throughout our history, and there is no indication that such expressions have ever been excluded from the protections of the First Amendment or subject to government regulation." The Court declined to expand the narrowly-defined obscenity exception to include graphic depictions of violence.

Finally, the defendants argued that the state should be permitted to determine what speech or ideas are wholesome enough to disseminate to minors, even if the speech is protected under the First Amendment. The Court, after reviewing the case law, held that the defendants cannot prohibit the dissemination of otherwise protected speech simply because the audience consists of minors. The right to free speech protected by the First Amendment is no less fundamental if you are fourteen than if you are forty.

Strict Scrutiny

The Court held that because the video and computer games at issue in this litigation were expressive speech protected by the First Amendment, strict scrutiny applies. Under this analysis, the law will be upheld only if defendants can show that the regulation is necessary to serve a compelling state interest and that it is narrowly tailored to achieve that interest. 

a. Compelling State Interest

The defendants argued that "[t]he Legislature was motivated to curb hostile and antisocial behaviour of youths, including violence and aggression toward law enforcement officers." Federal courts have repeatedly recognized that the state has a legitimate and compelling interest in safeguarding both the physical and psychological well-being of minors. However, simply identifying a compelling state interest is not enough.

If the state was able to show that the psychological well-being of Washington's youth was in genuine jeopardy, it had the additional burden of showing that the regulation is narrowly tailored to address that problem "without unnecessarily interfering with First Amendment freedoms" (Sable Communications of California Inc. v. F.C.C., 492 U.S. 115, 109 S.Ct. 2829 (1989)).

The Legislature was apparently attempting to address the problem of the game-related increase in hostile and antisocial behaviour in minors, particularly toward law enforcement officers. The defendants produced expert reports and a number of studies which found a correlation between a minor's exposure to depictions of violence and the development of aggressive tendencies and anti-social behaviours. The plaintiffs produced their own expert report, a like number of studies, and a presentation by the State's Department of Health which concluded that no causal connection between playing violent video games and real-life violence has been established. Having reviewed all of the evidence, the Court found that one could reasonably infer from the defendants' evidence that the depictions of violence with which we are constantly bombarded in movies, television, computer games, interactive video games, etc., have some immediate and measurable effect on the level of aggression experienced by some viewers and that the unique characteristics of video games makes them potentially more harmful to the psychological well-being of minors than other forms of media.

Nevertheless, the Court stated that "the current state of the research cannot support the legislative determinations that underlie the Act because there has been no showing that exposure to video games that trivialize violence against law enforcement officers' is likely to lead to actual violence against such officers." Few of the studies on which the defendants relied had anything to do with video games, and none of them was designed to test the effects of such games on the player's attitudes or behaviour toward law enforcement officers. In the final analysis, given the state of the existing research, the Court found that the Legislature's belief that video games cause violence, particularly violence against law enforcement officers, was "not based on reasonable inferences drawn from substantial evidence."

b. Narrowly tailored to further compelling state interest

Where strict scrutiny applies, courts strike down speech restrictions "[i]f a less restrictive alternative would serve the Government's interest" (United States v. Playboy Entertainment Group, Inc., 529 U.S. 803, 818, 120 S.Ct. 1878, 146 L.Ed.2d 865 (2000)). Here the Court found that even if the state's interest in preventing video game-related violence toward law enforcement officers was compelling, the limitations imposed by the law "impact more constitutionally protected speech than is necessary to achieve the identified ends and are not the least restrictive alternative available."

The law was supposed to regulate all "video or computer game[s] that contain[ ] realistic or photographic-like depictions of aggressive conflict in which the player kills, injures, or otherwise causes physical harm to a human form in the game who is depicted, by dress or other recognizable symbols, as a public law enforcement officer." Where the victim is identified as a law enforcement officer the distribution of games that contain even relatively "common forms of violence", reflect "laudable struggles against evil authority figures", or have very limited violent content, is restricted. In short, "the regulation of speech at issue here is not limited to the ultra-violent or the patently offensive and is far broader than what would be necessary to keep filth like Grand Theft Auto III and Postal II out of the hands of children."

Having found that state did not show that the legislation was likely to curb anti-social aggression in minors in a direct and material way and that the legislation was not the least restrictive alternative available, the Court outlined key considerations in analyzing future attempts to regulate video games on the basis of their content whether the regulation covers only depraved or extreme acts of violence that violate community norms; whether the regulation prohibits depictions of extreme violence against all innocent victims, regardless of their viewpoint or status; and whether social scientific studies support the legislative findings at issue.

Vagueness

Legislative enactments must "give the person of ordinary intelligence a reasonable opportunity to know what is prohibited, so that he may act accordingly" (Grayned v. City of Rockford, 408 U.S. 104, 108, 92 S.Ct. 2294, 33 L.Ed.2d 222 (1972)). The Court found the language of the challenged law too broad as it covered all "video or computer game [s] that contain[ ] realistic or photographic-like depictions of aggressive conflict in which the player kills, injures, or otherwise causes physical harm to a human form in the game who is depicted, by dress or other recognizable symbols, as a public law enforcement officer." Would a game built around "The Simpsons" or the "Looney Tunes" characters be "realistic" enough to fall within the legislation? Do the Roman centurions of "Age of Empires" qualify as "public law enforcement officers"? 

When pressed at trial, defence counsel was unable to determine whether firefighters were "public law enforcement officers," suggesting that such issues should be determined by the state courts. However, the court found this line of reasoning unsatisfactory as there "is a substantial risk that [the] plaintiffs' exercise of their First Amendment rights would be chilled while each issue of interpretation is presented to the state courts, thereby depriving plaintiffs of the very rights they seek to protect in this suit." Given the fact that rights of free expression were at stake, the Court found that the legislation was unconstitutionally vague.

Judgment available here.

Video Software Dealers Association v. Norm Maleng
US District Court, Western District of Washington
325 F. Supp. 2d 1180 (2004)
Summary by Arsen Krekovic

St. Louis Legislation Is Unconstitutional

(This is an archived case summary.)

This case challenged the constitutionality of an ordinance of St.Louis County, which made it unlawful to knowingly sell, rent, make available, or permit the "free play" of violent video games.

The action was brought by various video game companies which alleged that the ordinance improperly restricts free speech. 

St. Louis defended the ordinance on the basis that 1) games do not contain sufficient expression to constitute speech; 2) even if games do constitute speech, they are "obscene" to minors; 3) there are compelling reasons for the Ordinance and it is the least restrictive means available; 4) the games should be treated as content-neutral; and 5) the Ordinance is not vague.

The court didn't buy these arguments and ruled that the Ordinance violated the First Amendment. The court concluded that "in most circumstances, the values protected by the First Amendment are no less applicable when the government seeks to control the flow of information to minors." The court struck down the Ordinance as unconstitutional.

The County argued that since video games require mostly player-controlled action and the story lines are often ignored, games should enjoy a lesser standard of protection. The court rejected this argument, stating that in today's technological age a viewer could also take any action-packed DVD movie like "Charlie's Angels" and skip right to the violent parts.

The County did not have any substantial empirical evidence linking violence in video games to acts of violence committed by minors, or supporting its belief that violent videogames cause psychological harm to minors. The court stated that "where [a] First Amendment right is at stake, the Government must present more than anecdote and supposition."  The County could notsimply surmise that it is serving a compelling state interest because "[s]ociety in general believes that continued exposure to violence can be harmful to children". However, the court made it clear that had such empirical evidence been present, it would have been more inclined to hold the ordinance constitutional.

Interactive Digital Software Association et al. v. St. Louis County, Missouri, et al.
2003, US Ct. of Appeal, 8th Cir.
329 F.3d 954
Summarized by Danielle Park

First Amendment Protection Accorded To Video Games

On November 22, 1997, thirteen-year-old Noah Wilson died when his friend Yancy stabbed him in the chest with a kitchen knife. Noah's mother, Andrea Wilson, sued Midway Games, Inc., alleging that at the time Yancy stabbed Noah, Yancy was addicted to Midway's “Mortal Kombat” video game, and that Yancy was so obsessed with the game that he believed he was the “Mortal Combat” character “Cyrax”.

Wilson claimed that Midway's design and marketing of Mortal Kombat caused her son's death. She alleged that she was entitled to damages under theories of negligent and intentional infliction of emotional distress, product liability, unfair trade practices, and loss of consortium. This summary focuses on the issue of negligent and intentional infliction of emotional distress.

Midway claimed that both the Connecticut and U.S. constitutions bar an action to recover damages from the maker of a video game, when the basis for liability is alleged to be the expressive content of the game. The Court held that “although Wilson is a private party seeking legal redress on a common law theory of liability, the First Amendment nonetheless has bearing and applicability here, as the State of Connecticut cannot provide a remedy, either by its common law or by statute, that violates Midway's free speech rights.” The negligent and intentional infliction of emotional distress claim was precluded by the First Amendment.

First Amendment Protection

While a video game that only simulated a pinball machine would not be protected speech, the Court held that “those that are analytically indistinguishable from other protected media, such as motion pictures or books, which convey information or evoke emotions by imagery, are protected under the First Amendment.”

The question then becomes which criteria “Mortal Kombat” met under the allegations in Wilson's complaint. In Wilson's own words, “the [interactive] technology utilized in [Mortal Kombat] was designed to have an immediate and lasting impact on the senses of the users as they used the product, this causing said users to feel exhilarated to such an extent that they would become obsessed by and addicted to the violent actions they were led to believe they were actually performing.”

Taking Wilson's allegations as true, the Court concluded that “Mortal Kombat”, as Wilson described it, was protected First Amendment speech. Wilson's allegations about the game, namely that it presented violence as a problem-solving technique and encouraged players to “act out” the violence they see on screen, demonstrated that her suit targeted the expressive elements of the game its plot (i.e., the fact that advancing to different levels of the game requires increased violence), its characters (all of which are alleged to be violent), and the visual and auditory milieu in which the story line is played out (one character's “finishing move” or method of killing opponents is “tearing off his opponent's head leaving his spinal cord still dangling”). What Wilson alleged as having warped Yancy's mind is “not a pinball machine, board game or sport; rather, it is a gratuitously violent cross between a comic book and a Saturday morning cartoon, with the player having some control over the sequence of events and choice of weapon-wielding characters.”

Even accepting Wilson's allegations that Mortal Kombat caused violence and physical harm to be visited upon her son, the Court held that the First Amendment precludes Wilson's action for damages unless Mortal Kombat's images or messages are “directed to inciting or producing imminent lawless action and [are] likely to incite or produce such action” (Brandenburg v. Ohio, 395 U.S. 444, 447, 89 S.Ct. 1827, 23 L.Ed.2d 430 (1969)). Midway's speech, an interactive video story depiction in game form, was not alleged to be this sort of incitement. Wilson claimed only that Midway intended to addict players, and knew or should have known that its conduct would bring about harm. The Court concluded, therefore, that the First Amendment was a complete bar to Wilson's claims for negligent and intentional infliction of emotional distress.

The case is available here .

Wilson v. Midway Games
2002, US Dist. Ct., Conn.
198 F. Supp. 2d 2002
KEYWORDS: freedom of speech - violence - negligence - intentional infliction of emotional distress

Summary by Arsen Krekovic

GAME ORDINANCE RAISES FREE SPEECH ISSUES

(This is an archived case summary)

The plaintiff association brought a freedom of speech challenge to an Indianapolis ordinance that restricted access to anyone under 18 to arcade games that were “harmful to minors”, defined as games which “predominantly appeal to the minors' morbid interest in violence.” One of the games targeted was the “House of the Dead”, where players massacre swarms of zombies. The ordinance required such games to be behind a partition, and stated that no minor would be allowed to play without an accompanying adult.

The District Court had agreed with the Plaintiffs that video games are “speech” within the meaning of the First Amendment, and that children have rights under the free speech clause. However, the District Court also ruled that the ordinance would violate the First Amendment only if the City lacked “a reasonable basis for believing the Ordinance would protect from harm.” Since that court found there was a reasonable basis (based partly on expert evidence of psychologists) to correlate violence in video games to aggressive behaviour in minors, and because the ordinance followed the conventional standard of obscenity, the District Court found in favour of the Defendants.

The District Court therefore denied a request by the Plaintiffs for a preliminary injunction against the ordinance until the actual constitutional validity of the ordinance was decided. However, the Court of Appeals noted the difference between obscenity, which falls outside the protection of the First Amendment and can be regulated, and violence. The main difference, the Court pointed out, was that “obscenity” had been judicially considered in the context of depictions of a sexual nature. Obscenity, as a legal standard, does not require proof of harm.
The Court of Appeals described “House of the Dead” as depicting “zombies being killed flamboyantly, with much severing of limbs and effusion of blood; but so stylized and patently fictitious is the cartoon-like depiction that no one would suppose it ‘obscene' in the sense in which a photograph of a person being decapitated might be described as ‘obscene’.” Because the ordinance was not intended to prevent breaches of the peace (which could be defensible), but was intended to regulate violent images, the Court held that the symmetry with conventional obscenity “breaks down”.

The Court made an interesting connection between First Amendment rights and the right to vote, pointing out that children should not be a “blank” when they turn 18 and exercise their right to vote. Since the right to vote is a personal right, the Court held that “the right of parents to enlist the aid of the state to shield their children from ideas of which the parents disapprove cannot be plenary either. People are unlikely to become well-functioning, independent-minded adults and responsible citizens if they are raised in an intellectual bubble.”

The Court went on to add that “[v]iolence has always been and remains a central interest of humankind and a recurrent, even obsessive theme of culture both high and low. It engages the interest of children from an early age, as anyone familiar with the classic fairy tales collected by Grimm, Andersen, and Perrault is aware. To shield children right up to the age of 18 from exposure to violent descriptions and images would not only be quixotic, but deforming; it would leave them unequipped to cope with the world as we know it.”

The Court found that the restriction of the freedom of expression was not offset by a compelling justification. It found in favour of the appellant Plaintiffs, remanded the case to the lower court and ordered an injunction. It does not appear that the case went any further.

American Amusement Machine Association v. Teri Kendrick
March 23, 2001
US Ct. of Appeals, 7th Cir.
244 F. 3d 954
Keywords: freedom of speech - censorship - obscenity - violent video games
Summary by: Byron Yep and Michael Mjanes

SPACE INVADERS CAUSE INDIGESTION?

(This is an archived case summary)

The plaintiff wanted to open a restaurant with forty tables equipped with built-in coin-operated video games, thus allowing patrons to dine and blast space invaders at the same time. New York City licensing regulations deemed any establishment with five or more video games an arcade, and obtaining a licence for an arcade was nearly impossible in the plaintiff's region. The plaintiff sought a preliminary injunction to allow it to open its restaurant without fear of civil or criminal liability.

In assessing the merits of the injunction, the court evaluated whether there would be irreparable harm and if there was either a probable chance of success or a serious question of law. The court determined that not being able to open its restaurant would cause the plaintiff irreparable harm. However, with respect to the plaintiff's chance of success the court was not persuaded that the video games were a form of speech protected be the First Amendment. In order to enter the realm of First Amendment protection there “must be some element of information or some idea being communicated.” The court also found that the questions of law were not serious enough to merit the preliminary injunction.

America’s Best Family Showplace Corp. v. City of New York, Dept. of Bldgs
1982 US Dist. Ct. (ED New York)
536 F. Supp 170
KEYWORDS: injunction - first amendment - arcade
SUMMARY BY: Byron Yep