Librarian of Congress Exempts ‘Abandonware’ DRM Circumvention for ‘Preservation” from DMCA Liability

In its recent triennial rule-making with respect to exemptions from the prohibition against circumvention of technological measures that control access to copyrighted works, the Librarian of Congress, James H. Billington, has ruled, again, that persons making non infringing uses of older abandonware video games, as described below, will not be subject to the prohibition against circumventing access controls (17 U.S.C. § 1201(a)(1)) during the next three years. Specifically exempt from the prohibition are:

…video games distributed in formats that have become obsolete and that require the original media or hardware as a condition of access, when circumvention is accomplished for the purpose of preservation or archival reproduction of published digital works by a library or archive. A format shall be considered obsolete if the machine or system necessary to render perceptible a work stored in that format is no longer manufactured or is no longer reasonably available in the commercial marketplace.

Dale's Comment: Firstly, despite many reports to the contrary, this is not a wholly new ruling. The 2003 triennial rule-making contained the following very similar exemption:

… video games distributed in formats that have become obsolete and which require the original media or hardware as a condition of access.

Indeed, this rulemaking is more restrictive than the previous rulemaking because it now specifically limits such circumvention for preservation purposes as I discuss below.

Secondly, I have read many blog 'interpretations' of this exemption over the last few days (not linked to here for obvious reasons) and most bloggers don't seem to understand this exemption. Most are interpretting this exemption as a free-for-all right to decrypt, copy, distribute and use any abandonware on any system.  My reading of this exemption is much more limited. 

Clearly the circumvention exemption for "archival reproduction of published digital works by a library or archive" doesn't apply to the average gamer.  However, the first portion of the exemption "for the purpose of preservation" would apply to the average gamer.

It appears the average gamer has the right to circumvent technological measures used to protect video games in obsolete formats that are already owned by the user for the purpose of preservation when the gaming console, for instance, is no longer manufactured or reasonably available in the commercial marketplace. 

This DMCA exemption does not exempt other provisions of Title 17 (the U.S. Copyright law) that otherwise generally prohibit copying, distributing and otherwise infringing copyrighted works.

So, what exactly does this exemption allow you, the owner of a video game in an obsolete format, to do. It allows you to circumvent the copy-protection scheme used to protect obsolete format video games for the purpose of preserving them (backing them up and, presumably, using the backup if the original copy becomes defective).  That's pretty much it. Indeed in the Librarian of Congress' commentary on the exemption he flatly says: 

"…the sole basis for this exemption is preservation and archival use…"

An important point here is that Billington did NOT exempt non-obsolete formated video games from the DMCA. So, it is still illegal under the DMCA's (17 U.S.C. § 1201(a)(1)(A)) to circumvent DRM on modern video games for the purpose of backing them up – let alone for any other purpose.

This exemption expires after three years unless the rule proponent (in this chase the Internet Archive) proves their case again. Namely, that without the exemption:

current technologies that control access to copyrighted works are diminishing the ability of individuals to use works in lawful, noninfringing ways.

Sources: Library of Congress Rulemaking | Detailed Background and Librarian of Congress Discussion | GameSpot | GWN | Joystiq

Microsoft (Accidentally) Giveth, Microsoft (Intentionally) Taketh Region Code Work-a-Round Away

If a recent post I mentioned that some clever users found a way around Microsoft’s XBox 360 region-specific Market Place movie and video demo download restrictions. The trick was to take advantage of Microsoft’s free XBox Live Accounts. A user in one jurisdiction could create multiple silver-level (a.k.a. free) accounts by simply stating in the online sign up process that they live in a another download-frinedly jurisdiction. Paid movie downloads, trailers, game demos etc. would then be available available through the alternative silver-level account in jurisdictions that Microsoft did not intend.

After only weeks of being out in the wild, Microsoft has patched this work-around. Now only users that have credit cards with billing addresses that match the purported region can download content for that region. Happily Microsoft is not banning these extra accounts, they are simply restricting their access to region-coded content.

As a lawyer, this is understandable. As a user, this is sad. Having previously lived in the U.S.and having access to virtually anything the Internet can deliver, it is a very rude awaking to move back to a 2nd tier jurisdiction like Canada where so many Internet-based services are either not available, delayed, provided at higher price points or provided with less functionality. Microsoft’s new movie download service is a perfect example of this regrettable phenomena.

Presumably a Canadian with an American credit card and billing address could still circumvent the system for instance. Humm… as a holder of several U.S.-based credit cards, I wonder which of my U.S. buddies would allow me to use their address for credit card statement receipts? 🙂

Sources: TeamXbox | Major Nelson | Xbox 360 Fanboy | Hexus | Pro-G | EuroGamer | PlanetXbox | Gamasutra | Joystiq

Seventh Circuit Court of Appeals Upholds Permanent Injunction Against ‘Safe Games Illinois Act’

7th Circuit Court of Appeal Ruling ESA v. Illinois Decision (November 27, 2006)
Lower Court Ruling in ESA v. Illinois Decision (December 2, 2005)
Text of Rejected Act

The U.S. Court of Appeals for the Seventh Circuit has upheld the prior Illinois District Court permanent injunction against the implementation of Illinois’ “Safe Game Illinois Act” that provided for two new criminal laws, the Violent Video Games Law and the Sexually Explicit Video Games Law. Illinois had not appealed the Violent Video Games Law portion of the earlier decision. The Court of Appeal held that the Sexually Explicit Video Games Portion of the Law swept too broadly:

The game God of War… is illustrative of this point. Because the (Illinois law) potentially criminalizes the sale of any game that features exposed breasts, without concern for the game considered in its entirety or for the game’s social value for minors, distribution of God of War is potentially illegal, in spite of the fact that the game tracks the Homeric epics in content and theme. As we have suggested in the past, there is serious reason to believe that a statute sweeps too broadly when it prohibits a game that is essentially an interactive, digital version of the Odyssey.

Similarly, it seems unlikely that a statute is narrowly tailored to achieving the stated compelling interest when it potentially criminalizes distribution of works featuring only brief flashes of nudity.

The Court of Appeal also held that the portion of the law requiring a 4″ warning sticker in addition to the ESRB warning was not sufficiently narrowly tailored.

According to Next Generation (and other sources), the state has not yet paid the $150,000+ legal costs that the court awarded to ESA on August 12, 2006.

Sources: Gamasutra | GameSpot | GameDaily.biz | GamePolitics.com | ars technica | CNet| Chicago Tribune | First Amendment Center | Media Law Prof

GamePolitics Full Coverage of Illinois Game Law

ESRB Recants Over T-Shirt Parody Trademark Cease & Desist Threat

I reported on November 10 that the ESRB had sent cease and desist letters to Kotaku, The BBPS and others concerning their reporting on a T-Shirt that parodies the ESRB logo (see the offending logo on the t-shirt depicted to the left). Despite being notified by Kotaku that the post is editorial content and not an advertisement for the sale of a T-shirt, the ESRB continued to demand the removal of the post.

The ESRB has since recanted and sent a letter to BBP&S (no workd on Kotaku yet) containing the following:

The ESRB Rating Icons are valuable trademarks of ESA, and we must be vigilant in protecting them against unauthorized commercial uses, lest our trademark rights become diluted. At the same time, we also understand and respect the First Amendment rights of those who, like bitsbytespixelssprites disseminate news and information.

That said, we have taken a second look at this issue and concluded that bitsbytespixelssprites was reporting on a product in the marketplace, and is not involved in distributing or marketing this product, and thus did not engage in any conduct sufficient to trigger the issuance of the cease and desist letter we sent. Please accept our apologies. I am happy to discuss this with you further if you so desire.

Sources: GamePolitics.com | Joystiq

FBI Shuts Down L2Extreme.com’s Unauthorized Lineage II Servers

The FBI has shut down an illegal game operation that allegedly provided subscribers with fraudulent service to, and code for, Lineage II. Apparently L2Extreme.com (now seized by the FYI) had some 50,000 active users. NCSoft says it lost millions in revenue from this. The operators of L2Extreme.com face a fine of $250,000 and up to five years in jail. NCSoft has said it has no plans to pursue the users.

This case is different from the Blizzard v. BNetD case because in the BNetD circumstance, they had reverse engineered the Blizzard server software and, presumably, wrote emulating software in a “clean room” without access to the original Blizzard server software – thus no direct copyright infringement. In the L2Extreme case, it is alleged that the L2Extreme.com server software was pirated (ie: copied) NCSoft server software.

Sources: NextGen.biz | Daily Tech | Gamasutra | ars technica | GameSpot | P2PNet | GameSpy | GameDaily.biz| NCSoft Press Release | GameIndustry.biz

Mark Bragg File’s Virtual Property Complaint Against Linden Labs

Text of Bragg v. Linden Labs Complaint (Oct 4, 2006)[.zip format]
Jurisdiction and other Interim Court Filings
While I was converting this blog to WordPress over the last 8 weeks, Mark Bragg sent me his updated complaint against Linden Research Inc. ("Linden") that was filed on October 4 in the Chester County (Pennsylvania) Court of Common Pleas.  Mr. Bragg is seeking a jury trial. On November 7, Linden petitioned the US District Court for the Eastern District of Pennsylvania to take jurisdiction of the case. 

I'm just now getting the time to review the claim and post this blog entry about it. 

The complaint contains a terrific history (frankly, the best I've read) of Linden, its MMORPG Second Life and describes how Linden differentiated Second Life from its competitors by granting "ownership rights" to in-game property (most MMORPG publishers claim/retain ownership in all related virtual property). It also contains a history/description of virtual property generally in the context of the growing MMORPG phenomena.

The 239 paragraph complaint alleges violation of Californian and Pennsylvanian unfair practices and consumer protection laws, fraud, violation of California's Civil Code concerning auctions, conversion (theft), interference with contractual relations, breach of contract, unjust enrichment and tortuous breach of the covenant of good faith and fair dealing. He discounts many of the provisions of the Linden Labs Terms of Service ("TOS") as being unenforceable due to unconscionably. Suffice it to say, when this case is over, I suspect Linden will be updating its TOS! Laughing

This Law.com article provides a good summary of the facts. The complaint, itself, is worth reading if only for its best-in-class description of the MMORPG industry and related virtual property issues. Excellent job Mark!

Dale's Comment: Given that many courts in many countries have upheld the validity of extremely one-sided Internet-service click-wrap/shrink-wrap agreements, I think Mark will have a tough time overcoming the clear provisions contained in the TOS. But he makes many compelling arguments pertaining to the contradicting public statements of Linden representatives, rights in and to virtual property purchased from other Second Life users, and the right to recoup the real $U.S. dollars he paid into the Second Life economy and not returned when Linden booted him from the game.

Bragg is claiming ownership to his in-game property. I am quite sympathetic to his arguments and have advocated, here, for the the recognition, at law, of rights in and to virtual property. But, if analogies to real-world and intangible property are taken to their logical extreme, Second Life players could argue that Linden would never have the right to shutdown their MMORPG and deny virtual property owners of their "right" to access, use, sell and other wise deal with their virtual property when, as will inevitably be the case one day, Second Life ceases to be a profitable game for Linden. 

This could be a very important, precedent setting case if it goes to trial. It could set the ground rules for the application of laws to virtual property going forward. Needless to say, I'll be following this one closely.

[Dec 13, 2006 Update: Mark has sent me this link where the most recent court filings in the case can be found. At the moment the parties are fighting over the most appropriate jurisdiction for further proceedings.] 

Sources: *Law.com | Blogger News Network | MMORPG BLog | Pilly.com

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GameDaily.biz Feature: Do Mandatory Console Game Bundles Violate Anti-trust Laws?

A phenomena of the recent three console launches (Xbox 360, PSP, DS, PS3 and Wii) is the mandatory bundling foisted on gamers by retailers looking to cash in on the extremely high demand for these consoles on launch.

GameDaily.biz has a feature article Predatory Packaging: Are You Being Illegally Forced into Buying a Mega Console Bundle? on this topic is worth a read.

According to Bob Freitas, a technology and antitrust litigator and partner in Orrick’s Silicon Valley office, it’s possible that these bundles could violate certain anti-trust laws, but it’s not highly likely he explained.

Source: GameDaily.biz

Users Find Work-a-Round to Defeat 360 Marketplace Region Coding

If you follow Major Nelson’s (Larry Herb’s) day-to-day missives about what is available for download through the Xbox 360 Marketplace, you’ll note that many arcade games, game demos, trailers and other downloadable content is only available in certain regions of the world. This has lead to much consternation among Microsoft’s international customers. But the issue was brought to a head recently when, for the first time, North American XBox Owners were initially restricted from downloading a Rainbow Six: Las Vegas demo that was available for download by European users. This doesn’t happen very often to U.S. customers.

As a result, some clever users found a way around Microsoft’s XBox 360 region-specific MarketPlace download restrictions. You can read about them in the linked articles below.

Dale’s Comment: Just as Sony had legitimate legal reasons for opposing Lik-Sang’s import of PSP systems into the UK, no doubt Microsoft has legitimate legal reasons for restricting access to content on a country by country basis. For example, game publishers/developers that provide downloadable content to Microsoft probably have granted exclusive distribution/marketing and other rights to that content in the prohibited regions to others. My hope/expectation is that over time licensing and distribution deals will be structured to recognize the increasingly globalized nature of the market so as to anticipate and, indeed, facilitate global distribution/downloads without this kind of constraint.

Sources: Gizmodo | SAGN

ESRB Sues Kotaku over Link to ESRB Parody T-Shirt

The ESRB is apparently demanding that Kotaku remove a post on their website describing and depicting a T-Shirt that parodies the ESRB logo (see the offending logo on the t-shirt depicted to the left). Despite being notified by Kotaku that the post is editorial content and not an advertisement for the sale of a T-shirt, the ESRB continues to demand the removal of the post. The ESRB demand letter states, in part:

We believe that this t-shirt ad will result in consumer confusion, and a substantial likelihood that the ESRB certification marks will face tarnishment and dilution.

Dale’s Comment: I personally don’t get the parody joke. Unfortunately the current state of trademark law is such that the trademark owner must fiercely protect its mark or face loosing it. This is an area of IP law that I believe is ripe for reform. The recent spat of “pod” related lawsuits brought by Apple against any company or service including ‘pod’ in their corporate, product or service name is another example of this silliness. Chris Bennet at the law firm of Davis & Company wrote this interesting blog entry on the topic. While the ESRB may have a case against the t-shirt manufacturer (and even that, I believe, is a tenuous case), they would have a much tougher time in any legal action brought against Kotaku based on this editorial post because Kotaku is not using the parodied logo in commerce. It merely comments on the existence of the shirt in a blog post. Trademark law is designed to keep others from using the trademark holder’s marks in commerce – not to keep editorialists from commenting on the existence of items that possibly infringe another’s trademarks.

[Update:] TheBBPS, a one man blog, apparently also received a cease and desist order from the ESRB for a similar blog post and took down the post. Destructoid, still another gaming blog, has seemingly decided to keep its post on the t-shirt up despite also receiving an ESRB cease and desist letter.

Sources: Kotaku | GamePolitics.com | Davis & Company | MMORPG Blog

Australian Tax Office Will Tax Income from Virtual Transactions

A spokesperson for he Australian Tax Office, in what is probably a world first, has said that if a virtual transaction has real world implications – if it can be attributed a monetary value – it attracts the attention of the Tax Office. In her words:

“The real world value of a transaction may form part of your taxable income, even if it is in Linden dollars,”

Australia seems to be heading in a different direction on this issue as the U.S. is based on Representative Jim Saxton has recently said.

Dale’s Comment: Frankly this makes complete sense to me. I see no reason to make a distinction between real-world revenue generated from virtual activities and any other income.

Sources: TheAge.com | Kotaku | nzherald.co.nz | TaxNews.com

XFire Sues GameSpy Over Battlefield 2142’s Buddy Sync Feature

Viacom-owned XFire has sued News Corp subsidiary IGN alleging the GameSpy Comrade "Buddy Sync" feature included with the hot title Battlefield 2142, infringes its copyrights. Comrade Buddy Sync accesses a user's friends lists from third party instant messaging programs (including XFire and AOL Instant Messenger) thereby allowing the gamer to see which friends are online and facilitating friend invites into games – a feature that is directly competitive with XFire's core functionality. District Court Judge Susan Illston denied Xfire's request for a preliminary injunction.

Dale's Comment: I haven't found the pleadings online. As I understand it the case alleges copyright infringement and misappropriation of trade secrets. Proving copyright infringement is difficult because a successful case requires a finding of significant copying of underlying source code – something that is highly unlikely to have occurred. Noting about how XFire works seems to be a trade secret. How XFire works is common knowledge in the industry. If it was a trade secret then how did GameSpy find out about it? Barring some kind of fiduciary or contractual duty to keep XFire's trade secrets secret, I don't know how XFire can make out a case on this basis. 

Sources: GameSpot | GameIndustry.biz

Related Posts:

 

Jack Thompson Misfires with Mortal Kombat Cease & Desist Letter

The new Mortal Kombat Armageddon game has a built-in character editor. Gamers can mix and match clothing, body types, hairstyles and facial characteristics to create original characters to be played/fought in the game. The enterprising e-zeen Gaming Target posted this story providing character editor formulas for gamers to use to create famous, and infamous, characters including a formula for creating anti-game-violence crusader Jack Thompson.

Jack Thompson, apparently not quite understanding the character editor distinction, sent off a cease and desist letter to Midway, the game’s publisher, with the following contained therein:

“It has today come to my attention that the newly recently Mortal Kombat: Armageddon contains an unauthorized commercial exploitation of my name, photograph, image, and likeness within the game.”

“You are commanded to cease and desist immediately from the distribution of this game because of this unauthorized, illegal content…”

“It would appear that your company has done this at least in part because I sued you all in the Paducah school massacre case and further because I appeared on CNN’s Anderson Cooper 360 when your company came out with your profane, violent, and idiotic Blitz: The League.”

To be clear, there is no crusading Florida lawyer character that is shipped with the game. On the presumption that Jack Thompson is aware of the Marvel v. NCSoft decision (see linked posts below) which is on point, this demand will likely just fade away once Mr. Thompson realizes what has happened here. The mere inclusion of a character editor does not, in itself, infringe anyone’s IP or personality rights any more than the manufacture and sale of Etch-a-Sketches does.

Sources: GamePolitics.com| Gaming Target | Gamasutra | joystiq | The Inquirer | GameSpot | EuroGamer | GWN | Pro-G | igniq.com

Granny Cohen’s GTA Class Action Suit Against Take-Two to Proceed

In July of last year a concerned 81 year old grand-mother, Florence Cohen, filed a class action lawsuit against Take-Two for false, misleading and deceptive practices with regard to the hidden ‘Hot Coffee’ sex scenes hidden within the popular video game Grand Theft Auto: San Andreas. She had purchased the game for her 14-year-old grandson. A Manhattan federal judge has now denied a Take-Two motion to dismiss this, and four similar suits, which Cohen’s lawyers are consolidating into one. Take-Two and its subsidiary, Rockstar Games Inc., had argued that the plaintiffs could only file claims in the states where they resided, not all 50 states. In denying the motion District Judge Shirley Wohl Kram wrote:

“If class certification is granted, the court will have the benefit of a well-defined class and a more fully developed treatment of potential choice of law questions,”

Sources: Gamasutra | GameDaily.biz | GamePolitcs.com | TheState.com | Reuters | IGN.com | ars technica | GameSpot | New York Daily News | New York Post | ZDNet | Fox News (AP)

Cohen Class Action Suit:

Stanhouse Class Action Suit:

Hot Coffee’s Effects on the Mod Scene

This Gamasutra feature article is a very interesting article on the Effects of ‘Hot Coffee’ on the game modding scene. Mods can inprove and extend the life of video games but since Hot Coffee, there is a keen awareness of the liability that game modding can expose developers and publishers to.

Sources: Gamasutra

‘Hot Coffee’ Related Posts:

SGI Sues ATI for Patent Infringement

Text of ‘327 Patent
The suit alleges that ATI’s Radeon graphics charge infringe its patent 6,650,327 describing a display system with floating point rasterisation and buffering. The patent was filed in 1998 and granted in 2003. SGI is just emerging from reorganization after bankruptcy while ATI is in the midst of being taken over by AMD.

The Complaint seeks unspecified damages and a Court Ordered injunction against future infringement by ATI. According to SGI’s press release:

“The Company’s technology covered by the ‘327 patent is an important resource in achieving enhanced graphics processing demanded by today’s computer systems,” said Dennis McKenna, CEO of SGI. “SGI has licensed this technology to ATI’s major competitors and, as I have previously been stating publicly, SGI intends to aggressively protect and enforce its IP. This is the first visible step in that process.”

Sources: Gamasutra | Inquirer | Silicon Valley Business Journal | The Register | CNet| ars technica | GameSpot | Daily Tech | Engadget | SGI Press Release

Sony Wins U.K. Lik-Sang Grey Market Case – Lik-Sang Shuts Down

Sony has won a High Court Judgment in the U.K. banning Hong-Kong based Lik-Sang.com from selling PSP consoles into the European Economic Area. While Hong-Kong-based Lik-Sang did participate in pre-trial activities, it did not show up in court to contest the case. Thus, a default judgment was awarded to Sony.

This action was launched in August of 2005 when Lik-Sang sold PSPs into Europe after Sony delayed North American and European shipments for many months after the Japanese PSP launch. The same sort of delay is about to occur with the PS3. Sony is launching the PS3 in the Japanese and North American markets months before Europe.

[October 24 Update:]After years of fighting Sony, Lik-Sang has closed its e-doors. In an interesting side-story, Sony’s European management purchased Sony products from Lik-Sang when unavailable in Europe (See BBC Story). Pascal Clarysse, former marketing manager for Lik-Sang, had this to say on closing:

“Blame it on Sony. That’s the latest dark spot in their shameful track record as gaming industry leader. The ’empire’ finally won. A few dominating retailers from the U.K. probably will rejoice (in) the news, but everybody else in the gaming world lost something today.”

Sony dismissed this as sour grapes. A similar Hong-Kong-based case between the parties continues.

Dale’s Comment: I understand Sony’s need to protect the interests of its European distributors and its trademarks. I also understand its wanting to protect its own economic interests by means of region-by-region product launches. But its claim that the lawsuit was brought to protect consumers’ safety is, of course, nonsense.

In a world of global markets with the ability to deliver products throughout the Globe overnight, one wonders if this market-by-market distribution model is appropriate any more. It certainly is far from consumer friendly or fair. Lik-Sang met a real consumer need. Through Lik-Sang, Sony’s most loyal fans had a means to purchase Sony products long before Sony had the wherewithal to launch/distribute products in their particular country. Sometimes it takes years before Sony launches a product into a given market (if ever). With this ruling, there is no legal way for etailers to sell into markets not served, or underserved by Sony and its resellers.

As a Canadian living right next to the U.S., I have oft experienced the frustration of not being able to purchase products and services only made available in the U.S. I relish the fact that etailers such as Lik-sang are willing to serve the needs of consumers in under-served regions of the world.

Lawsuit Stories: Gamasutra | Engadget | GameIndustry.biz | GameSpot | *GameDaily.biz | PC Pro | IGN | ars technica | TVG | BetaNews | Pocket-lint | GameIndustry.biz| Daily Tech

Lik-Sang Closing Stories: Lik-Sang.com Notice | Gamastura | ars technica | Outlaw.com | ZDNet | Engadget | BBC | GameSpot | GameDaily.biz | GameShout | CNet | afterdawn | PC Pro | IGN | NeoSeeker | Pocket-Lint | Gizmodo | Inquirer | Hexus | GameIndustry.biz | EuroGamer | Kotaku | Gadgetspy | PC World | Games Digest

Blogosphere: Bit-tech.net

Engadget Podcast 93 Coverage (Time Index 4:44-12:33).

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Konami Settles with Roxor – ‘In the Groove’ IP Transfered to Konami

It appears Konami won this one. Roxor has agreed to transfer all IP rights in and to In the Grove to Konami.

Sources: Gamasutra | GameSpot | GameIndustry.biz | Yahoo! Games | joystiq | Konami Press Release | Roxor Press Release

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WWE Sues THQ – Claims Unauthorized Sublicensing

The WWE filed a lawsuit against THQ on October 12th claiming games using the WWE trademark were improperly sold in Japan and Asia. The WWE is seeking a declaration that it has the right to terminate its license agreement with THQ.

WWE claims that THQ sublicensed out rights to the game that they were not granted the right to sublicense. Indeed, WWE claims that the license explicitly precludes sublicensing without written consent from the WWE which such consent was not sought nor received.

WWE claims that THQ sublicensed rights to Yukes (partly owned by THQ) and that Yukes paid royalties directly to THQ that should have been paid to WWE.

THQ, for its part, says that WWE has been aware aware of and consented to the manner of distribution it uses in Japan.

Sources: Gamasutra | Pro-G | GameSpot 1 | *GameSpot 2 | Gamers.com | XBoxic | THQ Press Release

Representative Jim Saxton Believes Taxing Virtual Economies Would be a Mistake

JEC Press Release The Chairman of the U.S. Congressional Joint Economic Committee (JEC), Jim Saxton, believes taxing virtual economies would be a mistake. The goal of a forthcoming JEC study is to head off any premature attempt to impose tax on virtual economies.

[November 9, 2006 Update: Despite heavy Republican House losses in the November 7 midterm elections, Rep. Jim Saxton held his seat and won for a 12th term.]

Sources: GamePolitics.com | Reuters | nzherald.co.nz | TaxNews.com

Florida Court Clears “Bully” for Sale Despite Jack Thompson Protest

Text of Thompson’s Complaint [.doc]
After ordering Take-Two to provide a pre-release copy of Bully for review in chambers, Judge Ronald Friedman, a Miami-Dade County Circuit Court judge ruled that Bully is not a public nuisance and dismissed Thompson’s complaint. According to Niero of Destructoid, who was in the court, the judge said the following:

“I have spent a couple of hours viewing the game. It was produced to me by an operator using a cheat, which allowed him to skip through the game and show me ‘key points’ that would require an average gamer hundreds of hours to reach. There is a LOT of violence, but not more than the general public has access to on television”

“As I said, there is a lot less violence in this game than what we see on television, and although it is pervasive, but not to the extent that it would cause a public threat that would require me to prevent these folks from selling it”

“Would I want MY kids to play this game?” His palm is open like a starfish on his chest. “Absolutely not. But this game is not a nuisance.”

Sources: Destructiod in-Court Summary | GamePolitics 1 | GamePolitics 2 | GamePolitics 3 | Miami Herald | 1Up.com | CNet | OUT-LAW.com | InformationWeek | IGN | afterdawn.com | GameIndustry.biz | Inquirer | Next Generation | Gamasutra

Court Orders Take-Two to Provide an Advanced copy of Bully for ‘Judicial Review’ :)

Text of Thompson’s Complaint [.doc]
Jack Thompson has convinced Judge Ronald Friedman, a Miami-Dade County Circuit Court judge, to order Take-Two Interactive to provide an advanced copy of the “T”een rated video game Bully for review in chambers by the court. Contrary to some early reports, the judge did not order that the video game be provided to Jack Thompson for his review. Rather, the judge has ordered that along with the game, Take-Two provide someone to play the game in front of the judge so the judge can review it. Thompson had called this game a “Columbine Simulator” without ever having seen the game.

Dale’s Comment: After months of controversy and fears that this video game would celebrate and promote bullies, all the reviews I have read and listened to make the point that, to the contrary, being a bully is not celebrated. The main character is not a bully at all, but, rather, has to defend himself against school-yard bullies and form alliances with other schoolyard mates. This critically acclaimed game is more akin to a high-school simulator letting players relive in a very realistic way, what it was like to be in high school and deal with the trials and tribulations of growing up.

While I was somewhat pleased that the order was limited to handing over the game for review by the court and not by Thompson (goodness knows what kind of a precedent that would have been), I still find it disconcerting that a court interposed itself into the process to decide for himself whether the game is suitable for sales to minors. Who appointed him the emperor?

Sources: Gamasutra | Play | ars technica | The Register | OUT-LAW.com | GameSpot | GamePolitics.com 1 | GamePolitics.com 2 | Miami Herald | Washington Post Destructoid | BBC