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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

» Product Liability

Opening the XBOX FloodGates

Wow, talk about litigious. In an earlier posting we reported about gamer-turned-litigator, Erik Estavillo. He sued Nintendo because he says a Wii update that limits cheating is "interfering with certain players pursuit of happiness". He's also suing Sony and Activision Blizzard.

Recently he sued Microsoft for $75,000, claiming pain and suffering resulted from the death of his XBOX 360. He says the XBOX is one of the only ways he socializes because he has agoraphobia. He also can't afford to get a new 360 or to replace the data he lost on his old one.

As part of his lawsuit he's subpoenaed Bill Gates. Apparently he wants to find out the number of XBOX 360s that have experienced the Red Ring of Death, and how many of those XBOX 360s Microsoft has repaired. Oh, and on another note he wants to know how many XBOX Live users have been banned for piracy in the last year. You never know... that info could come in handy, eh?

Coverage here.

Console manufacturers: time to update your warning notices

An article in the British Journal of Dermatology has identified a new skin disorder, affectionately called "PlayStation palmar hidradenitis". It was discovered by researchers when a 12 year-old girl was admitted to a hospital, complaining of painful sores on her palms. Turned out she played a lot of PlayStation while gripping the controller tightly and sweating a lot. (Note: that's SWEATING a lot; not SWEARING a lot. To our knowledge, only the former activity is medically relevant).

Her playing sytle combined with her underlying skin disorder caused the sores. The doctors ordered her to stop playing the console for 10 days, and bingo: she made a full recovery.

Console manufacturers will no doubt want to add this potential condition to their warning notices in the future.

Also, we wonder how long it will take for Sony to object to the condition's name. This naming problem is similar to a case in 2005 where researchers named a cancer causing gene "POK Erythroid Myeloid Ontogenic", or POKEMON for short. It didn't take Nintendo's lawyers long to send out the demand letter, after which the gene was renamed "Zbtb7".

PlayStation story here (BBC)

POKEMON story here (Gamasutra)

NVIDIA SUED

Submitted by Karine Bellavance

NVIDIA Corporation is being sued by a New York based law firm for alleged securities fraud. The firm alleges that between November 2007 and July 2008, NVIDIA accumulated important losses, as a result of withholding pertinent information about a high rate of failure for their mobile graphics solutions.

Coverage at: Gamesarefun.com

Halo 3 Crashes Lead to Lawsuit

A class action lawsuit has been filed in California against Microsoft and Bungie, alleging that Halo 3 causes the Xbox 360 to crash or freeze, and therefore that the software is not "fit for its purpose" (legalese for "it doesn't do what I shelled out $60 for it to do").

The lawsuit also alleges that Microsoft and Bungie have done nothing to address the problem even though there have been numerous complaints.

Coverage at ITWire, Kotaku, and Digital Journal.

Microsoft Sued by Estate of Infant

The estate of an infant who perished in a December 2004 house fire alleged to have been started by a faulty X-Box has commenced a lawsuit against Microsoft Corporation. Wal-Mart Stores, Inc. who sold the X-Box unit to the family of the deceased has also been listed as a defendant to the action.

In February 2005, Microsoft announced a recall of more than 14 million X-Box power cords, citing fire concerns.

Coverage at whig.com

Mom Sues Sony, Vivendi and Sierra for Inducing Seizures in Her Child

A U.S. mother is suing Vivendi Games, Sierra Entertainment, and Sony Computer Entertainment America for "neligent, careless and reckless" behaviour after her infant allegedly suffered a debilitating epileptic seizure while playing Spyro: Enter the Dragonfly on PS2. While game packaging warns that players may be susceptible to seizures "when exposed to certain light patterns or flashing lights," the mother alleges that the seizure her child suffered was so severe that her child has suffered permanent injuries that affect all aspects of their everyday life. No word on how old the "infant" playing the videogame was or whether the packaging cautioned against letting babies play videogames.

Source: http://shorl.com/seprafukefrahu

VIVENDI, SIERRA, SONY AND HIAWATHA SUED OVER SPYRO

A New York woman has filed suit for unspecified damages in New York Supreme Court claiming that her infant son suffered a “gran mal seizure” (epilepsy) while playing Spyro: Enter the Dragonfly. GameSpot reports that the woman claims that the defendants were “negligent, careless, and reckless with regards to the design and manufacture” of Spyro. The PS2 edition of the game is said to come with a warning advising consumers of a “very small percentage of individuals” experiencing epileptic seizures when exposed to certain light patterns or flashing lights.

coverage at: http://www.gamespot.com/news/6168230.html

DISGRUNTLED CONSUMER LAUNCHES WII LAWSUIT

As you have probably heard, there have been some problems with the wrist straps for Nintendo's new Wii controllers and Nintendo announced a voluntary replacement program last week. In the meantime, a Wii purchaser from Texas has filed a lawsuit against Nintendo, claiming that Nintendo engaged in 'unfair or deceptive practices"? by telling consumers that the Wiimote's wrist strap was meant to prevent the controller from flying from a user's hand during use, but then providing a strap that was not effective for that intended use. The lawsuit also claims that the wrist strap defects are a breach of warranty.

Nintendo has responded by stating that the lawsuit is without merit.

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

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. 

TAKE TWO AND ROCKSTAR LOSE APPEAL

In 2003, two police officers and a dispatcher were killed in Alabama by a teenager who played Grand Theft Auto obsessively. The teen was sentenced to death, and the families of the victims sued the game's developer and publisher, Rockstar and Take Two Interactive. 

Rockstar and Take Two applied to dismiss the lawsuit. Their application was dismissed earlier by a circuit court judge, and their appeal was just denied by the Alabama Supreme Court. However, the court is still willing to consider arguments regarding whether the Alabama courts have jurisdiction to hear the case. 

Coverage here  http://www.shorl.com/gadrusamogrydro  (Everything Alabama)

Microsoft Sued For Alleged 360 Defects

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

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

360: Too Hot To Use?

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

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

PARENTS SUE BLIZZARD

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

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



Germany Taking Steps To Curb Violence

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

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

SONY SETTLES PS2 LAWSUIT

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

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

W.O.W. VIRUS AND MMO LIABILITY

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

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

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

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

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

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

SONY BATTLES MICROSOFT FOR MELTDOWN SUPREMACY

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

UPDATE BURKE V. MICROSOFT

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

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

DEATH ATTRIBUTED TO EXCESSIVE GAMING

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

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

Coverage at http://shorl.com/bifropopymufri

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

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

PRODUCT LIABILITY IS HOT TOPIC FOR XBOX

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

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

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 .

 

BEWARE VIDEO GAME INJURIES

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

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

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

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

Someone's About To Get Fired…

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

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

Our suggestion?  Practice your stop, drop and roll.

Coverage at http://shorl.com/dajyvasydove  

XBOX CABLE A HOT ITEM

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

XBOX DISC DRIVE LAWSUIT

A disgruntled Xbox owner has started an action against Microsoft in the Los Angeles Superior Court, claiming that his Xbox lost its ability to read discs after less than a year of use. The action was brought on behalf of all those who have purchased Xboxes in the United States since Microsoft released the gaming console in late 2001. Microsoft is reviewing the complaint and has yet to respond.

Coverage at http://shorl.com/hiheherudubra

GAMES NOT CAUSE OF SCHOOL SHOOTING

(This is an archived case summary)

James et al.v.Meow Media et al.,
2002 FED App. 0270P (6thCir.),
US Court of Appeals for the Sixth Circuit, No. 00-5922 (August 13, 2002)

On December 1, 1997, fourteen-year-old Michael Carneal opened fire in his high school and killed three classmates. The victims' parents suied several video game, movie production, and Internet content-provider companies, on the basis that Carneal regularly played violent video games, watched violent movies, and viewed Internet sites and that these activities desensitized Carneal to violence and caused him to kill the other students.

Carneal regularly played Doom, Quake, Castle Wolfenstein, Redneck Rampage, Mech Warrior, Resident Evil and Final Fantasy, and a possessed a video tape of "The Basketball Diaries".

The plaintiffs' case involved three causes of action, only two of which were at issue before the US Court of Appeal. First, the defendants were negligent because they knew or should have known that distributing their material to young people created an unreasonable risk of harm to others. Second, the video game cartridges and movie cassettes were "products" under Kentucky product liability law, and the violent features were product defects.

The lower court dismissed the plaintiffs' action on all grounds, and the plaintiffs appealed.

Negligence and Duty of Care

The Court of Appeal agreed with the lower court that the defendants were not under a duty to protect the victims from Carneal's actions. Under Kentucky law, every person is under a duty to exercise ordinary care to prevent foreseeable harm. Here, it was not foreseeable that the defendant's products would incite Carneal to murder. The Court of Appeal aptly described its reasoning as follows

"It appears simply impossible to predict that these games, movie, and internet sites (alone, or in what combinations) would incite a young person to violence. Carneal's reactions to the games and movies at issue here, assuming that his violent actions were such a reaction, was simply too idiosyncratic to expect the defendants to have anticipated it. We find that it is simply too far a leap from shooting characters on a video screen (an activity undertaken by millions) to shooting people in a classroom (an activity undertaken by a handful, at most) for Carneal's actions to have been reasonably foreseeable to the manufacturers of the media that Carneal played and viewed."

Even if the defendants had owed a duty of care to the victims, the Court found that Carneal's intentional violent actions were a superseding cause which broke the chain of causation.

The Court also engaged in an interesting First Amendment discussion concerning the plaintiffs' attempt to attach tort liability to the ideas and images communicated to Carneal by the defendants' products.

Product Liability

The Court rejected the plaintiffs' product liability claims as "deeply flawed". The plaintiffs failed to prove that the video games and movies were "products", as what was at issue was the ideas, words and images contained in those games and movies.

Summary by David Spratley.

Expert Evidence Video Games And Epileptic Seizures

(This is an archived case summary)

Nintendo wanted to have an opportunity to question the family doctor of a child who allegedly developed epileptic seizures after playing Nintendo games. The mother of the child, the plaintiff, had argued and won in an earlier decision that the doctor had to first provide a written report. Nintendo argued that the doctor was not an expert and so could depose the doctor without a previous written report.

The court held that the District Court treats family doctors as experts and a written report is required prior to an oral deposition. In the result, Nintendo had to wait for the report to be made before being allowed to question the witness.

Benoit v. Nintendo of America, Inc.
November 28, 2001
US Dist. Ct., ED Louis.
2001 WL 1524510
Keywords: seizures - personal injury - experts
Summary by: Cheyenne Reese

NEGLIGENCE AND GAMES

(This is an archived case summary)

A mother brought a wrongful death action against TSR, the manufacturer of the pen-and-paper roleplaying game “Dungeons& Dragons”, for the suicide of her son. The United States District Court for the Western District of Kentucky, 715 F. Supp. 819, granted summary judgment to TSR, effectively dismissing the case on constitutional grounds. The Court of Appeal affirmed the decision, but on non-constitutional grounds. The Court of Appeal ruled that under Kentucky's common law principles of negligence, TSR was not liable for the boy's death, and held that (1) TSR was not negligent in disseminating the game to “mentally fragile persons”; (2) TSR had not breached a duty to warn; and (3) the son's suicide was an ”intervening cause” of his death.

The plaintiff alleged that her late son was an avid ”Dungeons and Dragons” player, and that it came to dominate his mind to such an extent that he was driven to suicide. She asserted that TSR violated a duty of care in publishing and distributing the game materials; that TSR violated a duty to warn that the game could cause psychological harm in fragile-minded children; and that the boy's death, which was caused by a self-inflicted gunshot wound, was a direct and proximate result of TSR's alleged wrongdoing.

Actionable negligence, under Kentucky law, consists of a duty of care, violation of that duty and a consequent injury. Every person owes duty to every other person to exercise ordinary care in his or her activities to prevent any foreseeable injury. It is also a fundamental principle of negligence that there is no liability without fault. Liability without fault, or “strict liability,” may sometimes attach where an injury is caused by an inherently dangerous product. The Court of Appeal held that the doctrine of strict liability has never been extended to words or pictures.

The Court found that TSR was not liable for the suicide of a player under the theory that TSR had negligently disseminated the game to “mentally fragile persons”. The only practicable way of ensuring that the game could never reach “mentally fragile” individuals would be to refrain from selling it at all, and as the Court stated, “we are confident that the courts of Kentucky would never permit a jury to say that simply by marketing a parlour game, the defendant violated its duty to exercise ordinary care.”
Kentucky law imposes a general duty on manufacturers and suppliers to warn of dangers known to them but not known to persons who are likely to use their product. The Court held that the mother did not have a viable negligence claim against TSR for its failures to warn of the dangers of the game there was no evidence indicating that TSR had reason to foresee that players would become more susceptible to murder or suicide than non-players.

Finally, the Court found that the teenager's suicide was an “intervening cause” of his death, thereby relieving TSR from any liability. Generally, suicide is considered an independent intervening act which a party cannot be expected to foresee. There are exceptions to this rule. Where a person known to be suicidal is placed in the direct care of a custodian, for example, and the custodian negligently fails to take appropriate measures to guard against the person's killing himself, the suicide may be found to have been a direct and proximate consequence of the custodian's breach of duty. In this case, however, the teenager was not known to be suicidal, was not placed in TSR's care or custody, and there was no evidence that the teenager would not have committed suicide if he had not played “Dungeons and Dragons”.

Watters v. TSR, Inc.
1990, US Ct of Appeal, 6th Cir.
904 F.2d 378
KEYWORDS: negligence - strict liability - Dungeons and Dragons - suicide
SUMMARY BY: Arsen Krekovic