By: Dale Dietrich
All posts on video game law cases, convictions, decisions, injunctions, investigations, police actions, pleadings, proceedings, settlements etc.
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
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
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
In a decision that could be important for game developers, a District judge has ruled that Rockstar’s use of the trade dress and trademark ‘Pig Pen’ over a fictional strip club in GTA San Andreas does not infringe upon a similarly styled ‘Play Pen’ strip club trademark in Los Angeles. The court ruled that Rockstar’s use of “the Play Pen trade dress and mark presents little, if any, chance that consumers will be misled about the content of the game”.
Sources: Gamespot | Gamasutra | 1Up.com | GameIndusry.biz | Eurogamer | Bit-tech.net | Spong | Kotaku | Playfuls | GamePolitics.com
Text of ESA v. Minnesota Permanent Injunction
Text of Complaint
Text of Bill
No surprise here. Yet another State law designed to restrict minors’ access to violent video games has been struck down as unconstitutional. As per Judge James M. Rosenbaum, “…the Act unconstitutionally impinges on expressions protected by the First Amendment…”. The law, set to go into effect on August 1, would have imposed $25 fines on children under 17 who bought or rented video games rated M (Mature) or AO (Adults only). As was the case in other jurisdictions where similarly intentioned laws were struck down, the judge found that Minnesota was “…entirely incapable of showing a causal link between the playing of video games and any deleterious effect on the psychological, moral, or ethical well-being of minors [p. 7] …absent compelling evidence, the belief is pure conjecture”. [p. 13] Accordingly, the bill failed the strict scrutiny test necessary to survive a First Amendment challenge.
Dale’s Comment: For those keeping track: (i) similar laws in 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) similar laws in Louisiana and Oklahoma are 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.
Sources: Gamasutra | GameSpot | ars technica | Next Generation | Joystiq | GameDaily.biz | GamePolitics.com | 1Up.com | Minnesota Star Tribune | Kotaku | First Amendment Central | CNet | IGN | USA Today (AP)
GamePolitics Full Coverage Of Minnesota’s Violent Video Game Law
According to the ESA, the Mounties seized thousands of pirated games in Markham, Ontario’s Pacific Mall. One person was arrested. Stores in the same mall had previously been raided in April of 2005, but piracy continued there regardless.
Sources: Gamasutra | GameSpot | GameDaily.biz | Gamers.com
Massive Black is suing its former employees James Xi Zhang and Jenny Chen for interference with contractual relations, fraud, unlawful access to computer network, trespass, breach of contract and interference with prospective business advantage. Massive, a game-art and design subcontractor for games such as Killzone 2, Helgate: Longdon and Battlefield 2142, alleges, among other things, that Zhang and Chen, while still employed by Massive Black, competitively bid on projects from Massive’s customer, without Massive’s knowledge, won the contract and used Massive’s resources (equipment and development personnel – while still on Massive’s payroll) to work on the pilfered projects. Massive also alleges that up to $150,000 was siphoned out of the company using inflated expense reporting.
Sources: 1Up.com | 
Discussed in the April 14, 2006 “1Up Yours” Podcast (Time Index 48:15-52:15) | Gamasutra
Text of ASA Decision
June 21, 2006
The UK Advertising Standards Authority (ASA) has opted not to uphold the 45 complaints filed against Sony for its PSP advertising campaign, which included a series of objectionable/racy posters that were primarily placed in outdoor locations, as well as on billboards and buses. The ASA agreed with Sony that the ads did not contain any explicit language or images likely to cause widespread offence or harm to children.
Sources: Gamasutra | GameIndustry.biz | vnunet.com | CNet | GameSpot | Brand Republic | joystiq | mad.co.uk
Text of Temporary Restraining Order
In response to an ESA/EMA initiated law suit filed immediately after the bill was signed into law, U.S. District Judge James Brady has issued a temporary restraining order blocking the recently passed Louisiana violent game bill from being put into effect.
Sources: Gamasutra | GameSpot | joystiq | Next Generation | GameDaily.biz | GameIndustry.biz | CNet (Reuters) | Fox News (Reuters) | Macworld | Spong | Reuters | Jurist | GameSpy | ars technica | GameSpy | IGN | GamePolitics
Text of Complaint
In an out-of-court settlement, a 24 year old Florida man, Brian Kopp, who claimed last March that he’d been unlawfully blocked from selling copies of his unofficial “World of Warcraft” guide by the Blizzard and Vivendi, can resume his sales on eBay. The settlement does not provide for monetary compensation for Kopp. Blizzard and Vivendi agreed to withdraw their previous take-down notices and to drop their infringement claims. They also agreed to refrain from filing future DMCA take-down notices against the same items Kopp had already disputed through counter-notices. Kopp agreed to retain the book’s disclaimers about its unofficial nature and agreed not to include links or instructions on how to locate ‘cheats’ in the game.
Sources: CNet | Kopp’s Press Release | GameSpot | USA Today | Kotaku | GameDaily.biz | Gamasutra | EuroGamer | GamePolitics.com
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In 2005, THQ sued The Tetris Company, alleging breach of contract, claiming it it had met all the requirements of its deal to have their license agreement renewed until 2007. THQ was previously prevented from releasing a Nintendo DS version of Tetris when Nintendo published the title itself last April. Under the settlement THQ will publish a version of Tetris for the Xbox 360 in Europe and North America. Presumably THQ has no rights to publish Tetris in Japan or for the DS. Tetris was published last year by AQ Interactive on the Xbox 360’s launch date in Japan.
Sources: Gamasutra | GameSpot | EuroGamer | Ferrago | GameIndustry.biz
Text of Consent Agreement
Under a consent agreement, accepted by the FTC in a 5-0 vote, Take-Two and Rockstar Games will be subject to civil penalties of up to $11,000 per violation if they violate their agreement to: (i) “clearly and prominently disclose on product packaging and in any promotion or advertisement for electronic games, content relevant to the rating, unless that content had been disclosed sufficiently in prior submissions to the rating authority”; (ii) not misrepresent the rating or content descriptors for an electronic game; and (iii) “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.”
Sources: FTC Press Release | Gamasutra | ars technica | joystiq | GameSpot | Next Generation | GameDaily.biz | GamePolitics.com | ars technica | 1Up.com | CNet | San Jose Mercury News | TheStreet.com | CNN
New York Investigation:
LA Civil Suit:
FTC Investigation Related Posts:
Stanhouse Class Action Suit:
Cohen Class Action Suit:
Other Hot Coffee Related Posts:
Authorities in Malaysia have revealed that they have seized 1.5 million pirated game and film DVDs and CDs worth an estimated 51.3 million ringgit ($14m) in raids so far this year. Almost half of these were meant for export, showing that video game piracy of physical discs is still a major issue in many regions.
Source: Gamasutra | GamePolitics.com
Davis & Co. report that Cheatcc.com and Crave Online Media have settled their dispute. In a rather novel dispute, Cheatcc had alleged that Crave Online Media had violated its copyright in its user submitted cheat codes. As noted by D&C, this would have been an interesting case to determine whether a court would find that a company has an enforceable compilation copyright or other proprietary claim in information submitted by its users. Details of the dispute have not been released.
Source: Davis & Company LLP
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Text of ESA v. Michigan Permanent Injunction
Text of Michigan Violent Games Law
Following the Illinois District Court’s Dec. 2, 2005 ruling, Judge George Caram Steeh, U.S. District Court, Eastern District of Michigan granted the ESA’s motion for summary judgment and handed down a permanent injunction against the state’s Violent Games Law, which was signed into law by Michigan Gov. Jennifer Granholm, ruling it unconstitutional under the First and Fourteenth Amendment. Contrary to the state’s claims, the judge ruled that the state failed to effectively exhibit a link between games and violent behavior.
Sources: GameDaily.biz | ESA Press Release | Next Generation | GamePolitics.com | Gamasutra | XBox Advanced | Business Wire | CNet | Joystiq | Xbox Solution | GameIndustry.biz | GameSpot | ars technica | New York Law Journal | MSNBC | Joystiq | L.A. Times | Detroit Free Press | Inquirer
GamePolitics Full Coverage Of Michigan’s Violent Video Game Law
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David Hoang, 43, of Essex in south east England has been sentenced to 18 months in prison for being in possession of modified games console chips. While banned in Britain and the United States, several countries, including Australia, Italy and Spain, permit the use of mod chips for importing region-coded games that may be delayed or never released in a country. Mod chips often, but not always, also permit the play of pirated games.
Sources: Gamasutra | GameIndustry.biz | Hexus | Press Start Online | virgin.net | iafrica.com
Twenty-nine individuals were arrested in the North of England. Merseyside and Lancashire police raided seventeen separate addresses in the Sefton and Skelmersdale areas of Liverpool, with a total of five major duplicating operations apparently being uncovered.
Sources: Gamasutra | Next Generation | BBC
Text of Immersion Patent
Sony’s attempt to overturn $90 million lawsuit by Immersion for copyright infringement was rejected. Sony still has an outstanding appeal with the US Court of Appeals for the stay of injunction. Should that case fail, Sony would be legally required to pay the entire $90.7 million and decide whether or not to pay Immersion licensing fees.
Sources: Gamasutra | Gamespot | Next Generation | GameDaily.biz | ars technica | Forbes | IGN | Inquirer | CNet | CVG | joystiq | Playfuls.com | GameIndustry.biz | Hexus | EuroGamer | The Register | PS3Fanboy.com
A California judge filed a temporary restraining order prohibiting Mobile game firm MForma employees from using allegedly proprietary Yahoo! secrets.
Sources: Gamasutra | GameIndustry.biz | Gamespot | GameDaily.biz
Other Video Game Trade-Secret Posts
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The UK’s Advertising Standards Authority has upheld a complaint against an advert for Konami title Crime Life: Gang Wars which claimed it exploited racial stereotypes and glorified violence.
Sources: GameIndustry.biz | Gamasutra | GamePolitics.com
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Text of Immersion Patent
Following Microsoft, Radica and others, Electro Source, maker of Pelican video games accessories, settles with Immersion. The settlement covers past royalties and related legal costs in the quarter amounting to $250,000.
Sources: Gamasutra | Next Generation | Business Wire | Next Generation | Computer Graphics World | Forbes
During a 2003 raid, more than 13,000 items were seized including pirate videotapes, CDs and DVDs. The pair had been selling pirate copies of games and film both online and from their store. They were charged with conspiracy to produce counterfeit product, with Forhad sentenced to serve 15 months and Ajad nine months.
Sources: Gamasutra | GameIndustry.biz
Text of Patent
In December 2004 filed a suit against Atari, Epic, Valve, Sierra and multiple divisions of Sony, including Sony Online Entertainment. The complaint referred to an infringement of patent 6,042,477 (method of and system for minimizing the effects of time latency in multiplayer electronic games played on interconnected computers).
Sources: GameDaily.biz | Gamasutra | Next Generation
Text of ‘690 Patent
Major U.S. game publisher and developer Atari has released the paperwork surrounding its latest financials, and embedded within the document is significant news on the firm’s $300,000 settlement of the American Video Graphics video game patent lawsuit, a suit which other parties have now apparently settled.
Sources: Gamasutra | Next Generation | GameIndustry.biz | Gamespot | GameDaily.biz
