Cases/Disputes – Page 4 – Video Game Law Blog

October 12, 2006November 7, 2006

Preliminary Injunction Granted Against Oklahoma ‘Games as Porn’ Law

Text of Preliminary Injunction
Text of Law (HB 3004)
As expected, the Oklahoma law that would make it a felony for anyone to sell, rent or display games which contain “inappropriate violence”, has been enjoined. The law would require stores to keep such games hidden in a similar manner to pornographic magazines and videos. The law was set to go into effect on November 1, 2006.

Sources: Gamasutra | GameDaily.biz | ars technica | Law.com | GameSpot | Next Generation | GamePolitics.com

GamePolitics.com Full Coverage of Oklahoma ‘Games as Porn’ Law
Related Posts:

Preliminary Injunction Granted Against Oklahoma ‘Games as Porn’ Law (October 12, 2006)
ESA/EMA Sues Oklahoma over ‘Game as Porn’ Law (June 23, 2006)
Oklahoma ‘Games as Porn’ Bill Signed into Law – ESA to Fight it (June 12, 2006)

October 10, 2006November 16, 2006

GameStop Launches Internet Distribution Service ‘Download Now’

GameStop has launched its new Internet-based digital distribution service “Download Now“. The service launches with some 1,000 titles including games from Capcom and Eidos.

Dale’s Comment: Internet video game distribution is an inevitability. The only thing surprising about this is that it took GameStop this long to get into the game that Valve has been in for several years with its Steam digital distribution system. I believe third party digital distribution has a very bright future. GameStop may face the same challenge that the likes of Cinema Now and others have faced in the context of online movie distribution – an industry reluctant to share revenue from 3rd party online distributors in the hopes it can bypass such distributors. But just like movies, in the main, I believe gamers won’t want to surf from publisher web-site to publisher website when searching for online game purchases. They’ll want a choice of one stop online game aggregaters just as they have a choice of brick and mortar shops to shop for games today.

Sources: Gamasutra | GameDaily.biz | GameIndustry.biz | Next Generation

October 5, 2006March 18, 2008

French Mod-chip Maker Divineo Ordered to Pay $9 Million in Fines for Violating DMCA

On September 11, 2006, U.S. District Court Judge Claudia Wilken assessed more than $9 million in penalties against France-based mod-chip maker Divineo for trafficking in mod chips and the associated HDLoader software. HDLoader allows users to copy their games from CD/DVD disks to their hard drive. Despite legitimate use by legions of honest gamers, this mod-chip/software bundle works by circumventing copy protection measures contained on the game CD/DVD and thereby contravenes the controversial DMCA.

Dale’s Comment: Mod-chips and software like HDLoader is hated by game developers/publishers because they are commonly used to distribute pirated video games on PS2 consoles. For honest gamers, they are a terrific way to install all purchased games on a hard drive so that they can be quickly and conveniently served up like records in a jukebox. Without it gamers must manually flip game disks each time they want to change the current game.

September 26, 2006November 16, 2006

Another GTA Wrongful-Death Suit Launched (Cody Posey)

Jack Thompson is involved in yet another wrongful death suit brought against Rockstar, Take-Two and Sony. This one involves the case of Cody Posey who confessed to killing his father, stepmother and stepsister. Once again Thompson, representing the surviving Posey relatives, argues that the game acted as a simulator that trained Cody to be effective killer. Thompson had filed a similar suit in Alabama where he was forced to remove himself from the case shortly before his temporary Alabama license was revoked in a shroud of controversy.

September 21, 2006March 17, 2008

The Ant Commandos Coutersues RedOctane for Trade Dress Infringement

The Ant Commandos (TAC) is countersuing RedOctane, alleging the guitar controller was first designed by TAC’s part owner Topaway and its trade dress later copied by RedOctane after RedOctane’s CEO visited its Chinese factory and subsequently purchased several hundred of its controllers. In addition TAC has filed for an injunction asking that Activision and RedOctane be prevented from infringing on the “trade dress” and that Guitar Hero software be unbundle from SG controller to allow for fair competition.

September 20, 2006November 16, 2006

20 Duplicating Machines Seized in U.K.

A man was arrested and police Seized twenty duplicating machines and 5,000 master discs were seized from the man’s premises in Lowestoft, Suffolk UK.

Sources: Gamasutra

September 20, 2006March 17, 2008

Redoctane Sues The Ant Commandos over Peripheral

RedOctane, the developers of the popular Guitar Hero PS2 video game, have sued The Ant Commandos alleging trademark infringement, unfair competition and copyright violation among other claims in connection with the sale of The Ant Commandos’ unlicensed line of guitar-like controllers.

September 20, 2006

THQ Sued Over Use of Song in SmackDown! Without Authorization

A New York musician, Michael Tumbarello is seeking $12 million in damages for the alleged use of his song, King of the Mat" in THQ's SmackDown! vs. Raw 2006 game. Among other claims, Tumbarello is seeking $3M each for copyright infringement, misappropriation of property and violation of New York civil rights law.

Dale's Comment: The clearing of rights to all intellectual property content is a critical and daunting task for all video game developers. This case shows the importance of this too frequently overlooked issue.

Sources: GameSpot | Yahoo! Games

September 19, 2006

Video Games Once Again Being Blamed for Montreal Shootings

September 19, 2006

The Syndicate Gaming Guild Registers a Trademark

The ‘professional’ online gaming clan/guild The Syndicate has registered a trade-mark. Davis & Co. has posted an interesting blog entry on this registration.

Dale’s Comment: As professinal gaming continues further into the mainstream and as more players are make viable careers out of professional gaming, we will no doubt see increasing numbers of such clan/guild professional trademark registrations in the same way that sports teams have used trademarks to protect their valued brands.

Sources: Davis & Co. LLP | The Syndicate’s Explanation

September 13, 2006

Paltalk Alleges Microsoft’s Xbox Live Infringes its Patents

Text of Complaint
The complaint outlines that Paltalk’s technology covers a number of aspects of online communications, including gaming communications through a group message server to maintain a consistent environment for all players, as well as establishing groups for online game play.

Sources: ars technica | CNet | Seattle PI | CrunchGear | Digital Trends | Inquirer | Kotaku | Paltalk Press Release

September 6, 2006March 17, 2008

Group Prosecuted in China for ‘Arms Dealing’ in Legends of Mir

A former deputy manager of Shanghai-based Shanda Network Development, Wang Yihui, and two accomplices are being prosecuted in China for illegal virtual weapons trade. Mr. Yihui changed the underlying game database of the popular Legend of Mir video game to produce, and replicate, two high powered weapons and provide them to two registered gamer accomplices. They, in turn, sold multiple copies of these weapons for profit. The group was able to make around $250,000 between September 2004 to August 2005 by such sales. Users of these weapons have an unfair advantage that allows them to advance through the game at a much quicker pace. The group are being prosecuted for copyright infringement.

Sources: Bit-tech.net | ars technica | Live Science | Spong | Taipei Times | 7 Days | IEET | War Cry | China Post

September 4, 2006

Square Enix Sued for Return of $3.78M Royalty Payment

Soft-World International has filed a lawsuit against Japan-based Square Enix, alleging that the Japanese company has failed to comply with a distribution agreement and demanded Square Enix pay back a royalty payment of US$3.78 million. Soft-World claims Square Enix failed to provide source codes as contracted.

Sources: DigiTimes | GameIndustry.biz | MMORPG blog

September 1, 2006March 17, 2008

Is an Eve Online Ponzi Scam an Actionable Fraud or Taxable by IRS?

Gamer’s with Jobs has a very interesting article about a recent Eve Online virtual ponzi scheme where ‘Dentara Rast’, the gaming name of an Eve Online player, scammed 700 billion ISK (the in-game currency) from other players. Given that ISK is convertible into real-world currency, making his ‘winnings/earnings’ from the scam roughly equal to $81,667 USD, would the other players have an actionable real-world fraud claim against the player? Are his ‘winnings’ taxable by the IRS? If Dentara Rast does not convert his winnings into cash, are his winnings taxable on the same theory as unrealized capital gains from exercised stock option purchases? Does Eve-Online’s EULA, claiming ownership rights to all in-game property, affect the result given that ISK is bought and sold on e-Bay in contravention to the EULA? Or, does the voluntary participation of other gamers in the free-wheeling, unregulated, world of Eve Online, comprise implicit consent (as with a poker-player’s implicit consent to being lied to by another player that bluffs) to in-game fraud and other shenanigans that would be illegal in the real world? All interesting questions explored in this article.

August 29, 2006March 18, 2008

Minnesota Appeals Video Game Law Permanent Injunction

ESA v. Minnesota (March 17, 2008 – 8th Cir Court of Appeals)
Click to hear Oral Arguments on Appeal (Feb 12, 2007)
Text of Appeal (Aug 29, 2006)
Permanent Injunction (July 31, 2006 – District Court)
Text of Complaint (June 6, 2006)
Text of Enjoined Bill (May 22, 2006)

GamePolitics Full Coverage Of Minnesota’s Violent Video Game Law

August 25, 2006March 18, 2008

Preliminary Injunction Granted Against Louisiana Violent Game Bill

Text of Preliminary Injunction
Text of Temporary Restraining Order
Text of ESA Complaint
Text of Violent Game Bill (HB 1381)

No surprise here yet again. Jack Thompson’s violent game bill, criminalizing sales of violent video games to minors, designed to be immune from constitutional challenge – isn’t. Here are a few choice excerpts from Federal District Court Judge James Brady’s decision:

“The State’s argument overlooks a line of cases holding that video games are protected free speech…”

“Defendants (Louisiana) contend that the legislative record contains social science evidence demonstrating that violent video games are harmful. It appears that much of the same evidence has been considered by numerous courts and in each case the connection was found to be tenuous and speculative…”

“The evidence that was submitted to the legislature in connection with the bill that became the statute is sparse and could hardly be called in any sense reliable…”

“Absent an injunction the statute will have a chilling effect on both video game developers and retailers.”.

Dale’s Comment: Owing to the ESA’s failure to certify all local district attorneys as defendants, this preliminary injunction applies only to East Baton Rouge Parish at the moment. It is expected this defect will be resolved and the injunction will shortly be extended state wide. For those keeping track: (i) similar laws in Minnesota, Michigan, Washington State, Illinois, Indianapolis and St. Louis have been ruled unconstitutional and permanently enjoined; (ii) a similar law in California has been temporarily enjoined; (iii) a similar law in Oklahoma is currently being challenged in courts and likely to receive the same fate; (iv) several other states (Florida, Delaware, Maryland, Indiana) have similar laws pending final enactment; and (v) Senators Clinton and Lieberman introduced similar federal legislation to Congress last year.

GamePolitics Full Coverage of Louisiana Violent Game Law

August 17, 2006February 27, 2008

Jack Thompson Sues For Early Access to Bully Video Game

Text of Complaint [.doc]
Jack Thompson has sued Rockstar and Wal-Mart for early access to the video game Bully so that he may independently review it prior to commercial release. He cites the ESRB rating system as having been inept in the past at rating Take-Two products.

Dale’s Comment: Thompson proves yet again that he will try any stunt to get notoriety. I will be very surprised if this ‘case’ is not immediately dismissed.

Sources: GamePolitics.com | GameSpot | Pro-G | CNet | ars technica | Inquirer | Bit-tech.net

August 17, 2006

Another Game Piracy Asset Seizure: $474,000

After serving a 12 month jail sentence for PS2 and XBox game related piracy and counterfeiting offenses, 46 year old Merseyside England woman Susan Roach has had $474,000 in assets seized under the Proceeds of Crime Act.

Sources: Gamasutra | Northwest Enquirer | 1Up.com | Computer Active

August 16, 2006November 15, 2006

EA Canada Employee is Awarded Almost $150,000 in Human Rights Case

Text of Decision
A woman, Janie Toivanen, who claimed she was unjustly fired from Electronic Arts Canada after suffering a breakdown was awarded close to $150,000 in a decision by the B.C. Human Rights Tribunal. When presented with a doctor’s letter recommending an indefinite stress leave, EA responded with a letter of dismissal with a lump sum payment offer of $19,744 representing a five-month severance payment. Toivanen was awarded: (i) $69,230 US to cover the lost value of her stock options; (ii) $19,744 severance; (iii) $20,000 for injury to her dignity, feelings and self-respect; (iv) health care costs of $6,000; (v) legal expenses of $3,300; and (vi ) $1,000 in out-of-pocket expenses related to the matter. No word yet if EA will appeal.

Sources: Vancouver Sun

August 15, 2006

Two U.K. Men Jailed for Game Piracy

Two men were jailed, one for 18 months another for 3 years. They were found with illegally-copied PC and Xbox video games worth an estimated £58,000.

Sources: BBC | Myth Games

August 12, 2006March 18, 2008

ESA Wins its Bid for Cost Award from Illinois Game Bill Fight

Back in March, the Entertainment Software Association and Video Software Dealers Association had petitioned Judge Kennelly in the United States District Court, asking him to order the State of Illinois to pay $644,545 in legal fees, for its unsuccessful effort to enact a law banning the sale of violent video games in the state. On August 11, the judge ordered Illinois to pay a $510,528.64 cost award.

GamePolitics Full Coverage of Illinois Game Law

August 10, 2006

GameStop Store Managers File Overtime Lawsuit

Six GameStop managers have filed a collective-action suit against the company because they believe they should be eligible for overtime pay and were classified as exempt.

Sources: GameDaily.biz | Joystiq | War Cry

August 9, 2006

British Game Pirates Ordered to Repay $1.114M

An ex-couple, Andrew King (53) and Angela Susan Jones (42), were ordered by a Liverpool court to pay $4378K and $835K respectively within six months or serve 21 months/six years in jail. If they fail to pay by the deadline and serve the jail sentence, they will still have to pay the outstanding balance.

Sources: Gamasutra | Myth Games | Hexus | PC Pro

August 8, 2006

Judge Rules Sports Statistics are Not Intellectual Property

Text of Decision
CBC Distribution was denied a new licensing agreement with MLB’s players’ association. CDC sued them for the right to use the player profiles and statistics. U.S. District Court Judge Mary Ann Medler has concluded that “The names and playing records of major league baseball players as used in CBC’s fantasy games are not copyrightable. Therefore, federal copyright law does not pre-empt the players’ claimed right of publicity.” The MLBPA is appealing.

Sources: Sports Illustrated | L.A. Times | ars technica | New York Times | San Jose Mercury News (AP) | USA Today | BBC | Contra Costa Times | Reuters | Washington Post | PC Magazine | MLB Player’s Association Statement | IPTABlog | William Patry | Cathy Kirkman

August 4, 2006March 17, 2008

Microsoft/Nintendo Sued over Controllers

Text of Complaint
Texas-based Anascape filed suit on Monday in the US District Court for the Eastern District of Texas, alleging that Microsoft and Nintendo infringed on 12 patents. The patents in question deal with a variety of controller technologies, including analog sensors, tactile feedback, and vibration mechanisms.

Dale’s Comment: OK, one wonders why Sony wasn’t sued as well? Perhaps Microsoft was targeted because it settled quickly with Immersion, while Sony “fought the good fight” for much longer. Nintendo was not targeted by Immersion. This article oddly reports an Immersion spokesperson as saying the reason is because Nintendo claimed it invented force feedback. Huh? If Nintendo invented it, how could Immersion hold the patent. If anyone has any more info on why Anascape hasn’t sued Sony, please contact me.