Stream Theory Files Patent Suit Against Competitors

Text of ‘334 Patent
Stream Theory today filed a lawsuit against Softricity, AppStream and Exent claiming the three companies are infringing on its U.S. patent number 6,453,334. The lawsuit, filed in the United States District Court for the Central District of California, seeks damages and an injunction against the three companies for their willful infringement of Stream Theory’s patent. The patent’s abstract reads:

A file system driver program executes on a local computer. One or more agent procedures is configured to execute on the local computer to access file resources on behalf of a target process. A security process regulates the access of file resources by the agent procedures. The regulation of the agent procedure by the security procedure is based on a property that is unique to the target process.

Sources: Gamasutra  |  GameIndustry.biz  |  Market Wire  |  InfoWorld

Movie Industry May Drop HDCP/ICT Until 2010/2012?

In what would certainly be good news for purchasers of the low-end PS3 (which will not have HDMI outputs), the leading German newspaper Der Spiegel claims to have information on an unofficial agreement struck between the movie studios, Sony, Microsoft and others which will see HDCP, and the Image Constraint Token (ICT), being consigned to the scrap heap for at least four years. This move would mean that all movie content produced until 2010 at the earliest, and possibly as far as 2012, will not carry the ICT – a security feature which restricts/down-rez’s high-definition playback only to equipment with HDMI ports and HDCP encryption.
 
Sources: ars technica  |  GameIndustry.biz  |  Daily Tech  |  Next Generation  |  IGN  |  Gamasutra  |  Xbit  |  Joystiq  |  Engadget  |  Der Spiegel (Google’s English Translation)
 
Dale’s Comment: This is a remarkable development if true. I have been participating in online forums for years where this has been a major subject of contention for early HDTV adopters. With the constant delays of HD-DVD and Blu-ray and the many competing HD standards appearing on the horizon, this may spell the demise of HD down-rezzing and the ICT. Recently, Professor Ed Felton suggested that HDCP is Eminently Crackable. All this said, since main-stream press has not yet picked this up, I question its veracity. But, its fun speculation in the meantime.Update: October 15 2006: Save for one or two titles, the first couple hundred Blu-Ray and HD-DVD releases have been released without HDCP/ICT activated.

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IEMA and VSDA Get New Name After Merger – EMA

The IEMA and the VSDA merged on April 12, 2006. They now have a new name, the Entertainment Merchants Association (EMA), a new website and a new mission:

The Mission of EMA is to promote, protect, and provide a forum for the common business interests of those engaged in the sale, rental, and licensed reproduction of entertainment software such as motion pictures, video games and sound recordings.

EMA represents more than 1,000 companies around the world, and more than 20,000 retail outlets in the US.
Sources: Gamespot | Next Generation | GameDaily.biz | Gamasutra | GameIndustry.biz | Market Wire | Game Politics | Video Business | ars technica

The Basic Marketing Plan For Indie Games

GAMASUTRA FEATURE: “The marketing plan is your flightplan on how to get your game to your players. The contents of a marketing plan can be divided into several sections. A strategic plan or the company’s business plan will describe the company’s strategic objectives. The marketing plan will focus on those major objectives, and how to reach those goals.”

Source: Gamasutra

Linden Lab Sued for Alleged Breach of Virtual Land Contract

A Pennsylvania lawyer, Marc Bragg, is suing Linden Lab, the publisher of Second Life, alleging the company unfairly confiscated tens of thousands of dollars worth of his virtual land and other property. The suit seeks financial damages in the thousands, in part for a breach of a virtual land auction contract and for violation of the Pennsylvania Unfair Trade Practices and Consumer Protection Law. Linden Lab froze Bragg’s account after a suspicious online auction in which he acquired significant plots of virtual land for far below market price. Bragg reportedly acknowledges exploiting the auction interface but maintains that the onus is on Linden Lab to run their auctions securely. Sources: Wired | Joystiq | 1Up.com | Kotaku | PR Newswire GamePolitics.com Dale’s Comment: As noted in my earlier comments, following virtual property theft convictions in China, legal rights to virtual property will likely be recognized in the west. It was only a matter of time before this kind of law suit was filed. Dale’s Comment (May 21 Update): In a May 20th e-mail from Mr. Bragg, he indicated that he was in the process of revising the complaint and, once finished, will e-mail me a copy of it for posting here. He also had this to say in his e-mail:

I’m doing this because what the company did was wrong, just plain ethically and I believe legally wrong, and I believe letting other consumers know about it is important. Having nearly $8,000 + / – U.S. dollars in the game and countless hours of adding value to the game by building and enhancing the development of in game concepts, I don’t think it’s right for the company to freeze the assets they claim I rec’d title to when I bought them. Tossing me from the game, I could really care less. But freezing assets when they’re in error, is not right. And not even a phone call.

I also spoke with Paul Coates, another prospective complainant, who explained the situation as follows. From time to time Linden Lab’s puts in-game virtual property up for auction. The auctions are run for real $U.S. dollars on the Second Life/Linden Labs website. Minimum bids are established by Linden Labs for each new virtual property (from as low as $1.00 to as high as $1,250.00). When an auction is complete the winner has 7 days to claim, and pay for, the virtual property. If the virtual property is not claimed, the second-highest auction bidder is sent an e-mail and given the option to purchase the virtual land. However, if neither person claims the land, a glitch in the Linden Labs auction system allowed for the auction to start anew, with NO minimum bids. As I understood it, Mr. Bragg, Mr. Coates, and other players realized that this was happening, waited for this to happen, and when it did, bidded in the no-bid-minimum auctions. Just as with the first auction, winners of the second no-bid auctions, were sent an e-mail from Linden Labs indicating they had won the second auction and were instructed on how to pay for and claim their virtual property. This effectively allowed the purchase of virtual property at prices below that which Linden Labs had set. It is important to understand, from Linden Labs perspective, that it has a financial stake in these new virtual properties, especially the expensive ones, as they must expand their IT infrastructure (adding new servers etc.) to support them. The problem is, according to Mr. Coates, that Linden Lab’s response, when they realized what was happening, was to treat these players with one broad brush – as if they were hackers that had somehow intentionally hacked the system, rather than, admittedly, taking advantage of a flaw in the system that Linden Labs had established. Linden Lab’s response was to ban these players, with no way to appeal. The players are upset because they have spent real-world money to play the game, purchase their virtual property, and then they were abruptly shut out of the game, their virtual assets (paid for with real U.S. dollars) ceased, with no recourse or appeal. If a representative from Linden Labs contacts me with their side of the story I will update this story with their response.

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Ubisoft Wins Non-Compete Order Against Tremblay/Vivendi L.A.

Former Ubisoft COO Martin Tremblay will have to wait until June 7, 2006 before joining Vivendi after a Quebec court extended a temporary injunction. Judge Helene Langlois dismissed Tremblay’s claims that he was constructively dismissed from Ubisoft.

Sources: Gamasutra | GameIndustry.biz | GameDaily.biz | Next Generation | Canada News Wire | Canoe Money(CP)

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Microsoft Countersues Lucent over XBox 360 Patents

Microsoft Corp. has filed a counter suit against Lucent Technologies Inc. in a dispute over Microsoft’s alleged misuse of patented technology in its Xbox 360 games console. Microsoft denies infringing Lucent’s patent and argues that it is invalid, in part, because Lucent failed to disclose “prior art” in its original patent application. Microsoft has also accused Lucent of infringing several Microsoft patents. Earlier, Lucent had filed suit against Microsoft, arguing that technology used in the Xbox 360 for decoding MPEG2 video files infringes on one of its patents.

Sources: GameDaily.biz | GameIndustry.biz | GameSpot | Total Video Games | Reseller News | CIO | Gamasutra | Seattle Times | Next Generation | 1Up.com | PC World (IDG) | IT World Canada (IDG)

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ESRB Re-rates Oblivion to Mature Following 3rd Party Mods

The Entertainment Software Rating Board (ESRB) has changed the rating assigned to the PC version of Bethesda Softwork’s blockbuster video game Elder Scrolls IV: Oblivion from T (Teen 13+) to M (Mature 17+), following the revelation of a topless game skin contained within modded versions of the game. The un-moddable Xbox 360 version of the game has also been re-rated to M ostensibly due to “Blood and Gore, Language, Sexual Themes, Use of Alcohol, Violence”. While critical of the decision, Bethesda has chosen not to challenge the ruling.

Sources: Gamasutra | GameSpot | Next Generation | GameDaily.biz | GameIndustry.biz | 1Up.com | GameSpy | Washington Post | Reuters | San Jose Mercury News | The Inquirer | Joystiq | GamePolitics

Bethesda’s Response: Bethesda Press Release | Gamasutra | GameSpot | Next Generation | Team Xbox | GamePolitics

ESRB’s Response to Industry Criticism:GameDaily.biz

Dale’s Comment: Based on the facts as I understand them, this is regrettable. It is unclear why Bethesda should suffer as a result of third-party mods added into their game without their control. This ruling has the effect of requiring developers to make their games tamper-proof in order to avoid retroactive ratings changes based on the malicious behavior of others. This is very different from last year’s GTA Hot Coffee controversy where, despite early denials, it was later determined that Rockstar had, indeed, embedded unlockable sex scenes within the source code of the game. As far as we understand from Bethesda so far, this is not the case here. But, given the heat the ESRB took last year for its failure to quickly respond, I can somewhat understand this “shoot first, ask questions later” approach, as unfair as it may be to Bethesda.

Another Unpaid Overtime Lawsuit – This Time Against Activision

Following the settlement of two recent class action suits brought against E.A. by its employees, ActiVision’s California-based computer graphics employees are now suing their employer alleging it too has failed to pay overtime compensation as required by California law. The complaint, brought on behalf of , alleges that Activision unlawfully classifies its computer graphics employees as “exempt” from California’s laws requiring overtime pay.

June 2008 Update: This case has subsequently settled.

Sources: Gamasutra | ars technica | Next Generation | 1Up.com | GameDaily.biz | GameIndustry.biz | Yahoo! News | PRNewsWire | Shapiro, Haber & Urmy (counsel for plaintiffs)

Activision (Canulti):

Activision (AE):

EA (Lender Hasty): EA programers

EA (Tam Su):

EA (Kirschenbaum): EA animators, texture artists, and modelers

Sony:

Ubisoft Montreal Enjoins its Former President, Martin Tremblay, from Joining Vivendi L.A.

In seeking to enforce a non-compete clause against its former President and COO, Martin Tremblay, Ubisoft Montreal obtained a provisional injunction from the Quebec Superior Court enjoining Tremblay from becoming President of Vivendi Universal Games’ Worldwide Studios in LA.. The interim interlocutory injunction is valid until 5:00 PM on Tuesday May 9, when Ubisoft will be seeking a safeguard order. The Court has ordered Tremblay to:

“abstain and cease immediately, directly or indirectly, competing with applicant Ubisoft…” and “…cease immediately working, directly or indirectly, within the territories of Canada, the United States and Mexico, for his own behalf or on behalf of any third party, in any business which manufactures or commercializes video products that may compete with products sold, manufactured or developed by applicant Ubisoft”.


Dale’s Comment: It is particularly ironic that Tremblay was the driving force behind Ubisoft’s and EA Canada’s recent non-compete scuffles. For example, in this open letter, EA Canada’s General Manager, Alain Tascan, urges Tremblay to cease requiring that Ubisoft staff sign non-compete agreements as condition of employment. It appears Tremblay is caught by the same type of non-compete agreement that, until recently, he was vigorously enforcing against others.

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

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Entropia Universe to use Real ATM Cards

The Entropia Universe bills itself as “the first virtual universe – with a real cash economy” (the Second Life operators may dispute this claim). It’s operator/developer, Mindark PE plans to introduce a real-world ATM card that will let players withdraw hard cash automatically converted from their virtual game treasury. Entropia runs on its own currency, Project Entropia Dollars (PED), that is explicitly backed by real-world dollars at a conversion rate of one U.S. dollars equals 10 PED.

Sources: BBC | ars technica | CNet – NY Times | ars technica ABC News | market wire | MMORPG blog | WarCry Network | 1UP.com | GameDev.Net

Dale’s Comment: Video game universes are increasingly overlapping with the real world. The Entropia Universe’s use of a convertible currency raises obvious currency exchange, tax law and money laundering issues/concerns. What will happen to users’ accumulated currency when/if the Entropia Universe ceases to exist, or its Swedish operator, MindArk, ceases to exist or goes bankrupt? Will users have claims as creditors against MindArk?

The wildly popular Second Life MMORPG also allows users to use real currency to purchase virtual property. Second Life actually publishes how much real-world money is spent in the game each month. U.S. currency is converted to the in-game $Lindex currency and, through the games ‘Marketplace’ users can convert $Lindex back to real currency. As will be the case in the Entropia Universe, this “virtual” property has real-world value that, if stolen etc., may (should?) give rise to enforceable property rights in the real world.

See a related story posed on April 3, 2006, where a Chinese man was convicted of stealing virtual property and sentenced to a fine of 5,000 yuan (US$617). I suspect it will not be long before this type of case makes its way into Western courts.

Nintendo Announces New Revolution Name (Wii) Without Registering N.A. Trademarks

According to Davis and Co. Nintendo announced the new name for its forthcoming Revolution console without having registered the new name, Wii, as a trademark in Canada or the U.S. Presumably, Nintendo has filed in Japan and will file the new name in Canada and the U.S. within six months to have their trademarks backdated to the Japanese filing date.
 
Source: Davis & Co.

May 4, 2006 Update – It turns out a Trademark Application was Filed in the U.S. on April 27 after all: Joystiq  |  Gamasutra

EA Settles Leander Hasty Class Action Labor Lawsuit – Tam Su Suit Still Pending

Text of EA’s Leander Hasting Settlement Press Release
Text of Leander Hasty Class Action Complaint
In the case started by an upset spouse’s posting to a blog, EA’s Software engineers have won a $14.9 million settlement from Electronic Arts, in a settlement of the Leander Hasty class-action lawsuit over unpaid overtime. EA also agreed to pay the employer’s share of the payroll taxes. Some entry level programmers (fewer than 200) will be reclassified as hourly workers, making them eligible for overtime pay. They will be allowed a one time grant of restricted company stock, but will no longer receive stock options or bonuses. Major deadlines will be moved to Fridays instead of Mondays in order to encourage a normal five-day working week. The 34 page settlement sets aside a separate $30,000 award for Hasty, who filed the original suit, and $15,000 for John McDonald, who joined the suit later. The settlement must be approved by the Superior Court of San Mateo County, California before it becomes effective. The original Kirschenbaum lawsuit settled on October 5, 2005 when EA made a $15.6 million payout. The Tam Su case is still pending.

Sources: Gamasutra | L.A. Times | San Jose Mercury News | Washington Post (AP) | GameDaily.biz | ars technica | IGN | GameSpy | GameSpot | Next Generation | CNet | Punch Jump | Daily Tech | The Inquirer

Activision (Canulti):

Activision (Erimez):

EA (Lender Hasty): EA programmers

EA (Tam Su):

EA (Kirschenbaum): EA animators, texture artists, and modelers

Sony:

“EA Spouse” Revealed to be Erin Hoffman

The “EA Spouse”, has been revealed to be Erin Hoffman, wife of programmer Leander Hasty. She shook up the video game industry in November, 2004, when she posted this anonymous letter as an “EA Spouse” on the Live Journal Blog. In it she detailed the harsh working conditions of EA Employees. The post led to three class-action lawsuits (two of which have settled) against Electronic Arts and other big video game companies.

Sources: San Jose Mercury News 1 | San Jose Mercury News 2 | 1Up.com

Activision (Canulti):

Activision (Erimez):

EA (Lender Hasty): EA programmers

EA (Tam Su):

EA (Kirschenbaum): EA animators, texture artists, and modelers

Sony:

Malaysia Seizes 1.5m Pirated Game, Film Discs

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

Information Policy Action Committee is Formed to Lobby Congress for Pro-Technology Reform

Ren Bucholz (EFF), David Alpert (Google) and Mark Stoller, have banded together to form a new Political Action Committee called the Information Policy Action Committee (IPAC) to lobby Congress for “pro-Geek”, “pro-technology” reform. Because the EFF is a 501(c)(3) tax-exempt charity, it can’t get involved in any electoral politics. The RIAA & MPAA are not barred by law from lobbying Congress. The founders of IPAC realized that “geeks need to be engaged in electoral politics in a direct way” as a tool to counter the multi-million-dollar lobbying efforts of the industry heavyweights. From the IPAC website:

We believe that technological innovation and individual creativity are vital to the future of this country. We believe that a prosperous and democratic society depends on freedom for all individuals to pursue scientific invention and artistic expression. Unfortunately, new, more draconian copyright and patent laws threaten to stifle these freedoms and restrict public participation in science, art, and political discourse.

Sources: IPAC | TWiT – see episode 49A | TWiT Podcast 49A: Interview with IPAC Founder Ren Bucholz

Related Story: IPAC Send Senators iPods: IPAC | Content Added to Senators’ iPods | Engadget | ars technica | Boing Boing

Jack Thompson Files $1M Harassment Lawsuit Against Florida Bar

Jack Thompson has filed a $1,000,000 harassment lawsuit against the Florida Bar. Specifically, in this complaint, Thompson alleges that: (i) the Florida Bar has participated in a civil conspiracy, collaborating with complainants who have filed SLAPP bar complaints against him to shut him up; and (ii) Rule 4-8.4(d) of the Florida Rules of Professional Conduct, as interpreted by the Florida Bar, impinge on his First Amendment Freedom of Speech rights. Thompson had previously claimed in a letter to the the Acting U.S. Attorney for the Southern District of Florida that: “The Florida Bar and its agents have engaged in a documented pattern of this illegal activity, which may sink to the level of criminal racketeering activity, in a knowing and illegal effort to chill my federal First Amendment rights“.

Sources: GamePolitics.com | North Country Gazette | GameSpot | MTV | Gamasutra

Australian Game Industry Chooses Not to Fight Ban on Marc Ecko’s Getting Up

IEAA Press Release
The Board of the Interactive Entertainment Association of Australia (IEAA) has determined that it will not appeal the refused classification category given to the video game Marc Ecko’s Getting Up: Contents Under Pressure. The game was originally classified MA15+ but following a request for review by the Local Government Association of Queensland, the Classification Review Board determined that the game should be refused classification and was thereby effectively banned.

Sources: Syndey Morning Herald | The Age | GamePolitics.com | Gamasutra