Gamers Rights Law » lawsuits

First, a Blizzard Warning

jaymoffitt — Mon, 18 Oct 2010 14:34:47 +0000

From the Movie ”Death Becomes Her”, “Now, a warning“, link to trailer. Well, they couldn’t say Blizzard didn’t warn them. More after the jump

Photo by Megaman, http://www.flickr.com/photos/meta-man/4198170449/

Used via Creative Commons License http://creativecommons.org/licenses/by/2.0/

After the warning, Blizzard is on record filing suit against 6 alleged hackers in the game Starcraft 2 ®, story here (according to Gamasutra). According to the story, that lawsuit was dropped.

This week, there was a lawsuit filed in California against three hackers (according to Geekosytem). More links here, (Ripten), and here (Big Download).

All versions of the story claim the three defendants are out of the U.S., but are subject to U.S. jurisdiction per the End User License Agreement (EULA) of Starcraft II.

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Purely commentary: As you know, this legal blog frequently links to independent gaming blogs whose view of the actions of the large gaming companies range from respectful to downright sarcastic. In this case, my own personal commentary will be much more kind (as it usually is).

It’s not only listed in the EULA, it’s posted as a warning on the Website (which, frankly, a lot more people will read than the entirety of the EULA), and then enforcement followed. Apparently in the first incident reported (and I must report I have found no lawsuit link, either my usual sources or in the news stories) the purported lawsuit was dropped. In the second claimed lawsuit it is reported as still live.

These games, whether paid or free-to-play (still a term of art) have a very real positive obligation to monitor cheaters. As an attorney, I believe that litigation (either against gamers, or gamers feeling they are unfairly targeted) is a small but important part of that equation. To me, this is almost a case study of the right way to approach the problem of “unfair advantage” in a large online game. Of course, this is purely predicated on current reports.

As you know, I’m no apologist for the large gaming companies (who many people find to be tone-deaf to individual gamers). However, specifically in this case, I couldn’t point out a different way they could have went with this.

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Jay Moffitt is a Tennessee attorney. This blog is for entertainment and educational purposes only and does not consitute legal advice or create an attorney/client relationship. Jay Moffitt is not certified as a specialist in this area by Tennessee and Tennessee does not certify specialists in this practice area. All comments will be answered promptly and courteously as long as they are germane to the discussion and do not contain specific game names or incidents

Games Workshop Sues (Part II)

jaymoffitt — Sun, 09 May 2010 15:49:48 +0000

Well, actually, it’s a new lawsuit. There are numerous internet sites reporting Games Workshop suing Curse (runs Website Warhammer Alliance).

The report from the prolific blog Massively… my favorite quote, “a litany of allegations including cybersquatting, unfair competition, dilution (of the IP), and more”. They link to the complaint here.

Warhammer Alliance response here, or you can find it on their site at Warhammeralliance. More on this after the jump…

As of now, I cannot find an OFFICIAL NOTICE from Games Workshop regarding this complaint. Their policy on their IP rights is publicly available. [Editor's note - if you find an official statement of a Games Workshop representative, please note it in a comment and I will link to it]

Now for links to a couple of other blogs with thoughtful points of view.

A commentary at Game by Night; Going Progaming blog has a point of view.

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Personal commentary: you know I am very loathe to comment upon ongoing lawsuits, especially ones that have not had an official response as yet. (People know where to find me, I’m paid to talk/write). But this one should be especially interesting, as the Web site makes no claim to be purely a fan site, or non-commercial. In fact it admits in their response that ad revenue was expected and needed. The timeline claimed in the response is part of their defense, and as I linked to it above it at least deserves a read. Recapping, I’ll be interested in seeing how a site that claims no defense of non-commercialism will fare in the courts.

New lawsuits update

jaymoffitt — Tue, 04 May 2010 05:19:14 +0000

Infinity Ward Developers sue Activision (for unpaid royalties)

From Lawsuits and Settlements Web site (talking about the California state law factor) ; and story from the Vancouver Sun.

A slightly different take…The Lawsuit and Public Relations, from Gamasutra. Other lawsuits, after the jump….

Linden Lab “land-owners” sue for the change in Terms of Service over the years

In California… AGAIN… article here at this online mag.

The story from Virtual Worlds News… ; From the Los Angeles Times Business blog; the always dependable Massively

Linux Users sue for loss of that capability on PS3 (via the latest PSN update “killing” any Linux installation).

Gamespot article here….; and from Kotaku.

All of these lawsuits are very complicated, and interesting, and I hope to discuss them in full, at a later date.

New wave of copyright lawsuits

jaymoffitt — Sat, 24 Apr 2010 21:30:45 +0000

Zynga vs PlayerAuctions (From Web site IP trademark lawyer)
Zynga Game Network, Inc. v. Playerauctions.com, CV10-2576 CBM (C.D. Cal. 2010). (Zynga says that Player Auctions is making money from their work. We’ll keep up with this one.) Others to keep up with after the jump.

Blog from SF Weekly SF lawsuit filed; Crowdstar vs. Wonder Hill; great article about an Aquarium game. (Crowdstar recently rumored to be looked at by Microsoft).

Hitler parody sites taken down. http://blog.taragana.com/index.php/archive/popular-hitler-downfall-parodies-removed-from-youtube-company-cites-copyright-infringement/ Technically this was not a “game-related” lawsuit, but the most famous of these parodies was for X-box.

Gamasutra; Blizzard sues. Gamasutra; Blizzard sues and drops suits

All these are new, therefore no comments on ongoing litigation, but you should read up on these… and perhaps we are in a “new wave” of copyright litigation after a bit of a lull.

Crossing the Line

jaymoffitt — Tue, 05 Jan 2010 16:26:57 +0000

Tracking your virtual character to track YOU!

Pixels and Policy has a great article about using a guy’s WOW profile to arrest him in real life. Extraordinary piece of reporting about interaction between police and WOW support system.

This is a link to a somewhat related story where Blizzard (WOW-maker) was sued for the way the program worked with personal information.

Some other interesting ideas that use the Metaverse to reveal something about the person behind the character.
There’s an article on Hypergrid Business about “Virtual Drag a Thorny Issue for Employers”.
I especially liked the quote, “A company can require that employees present themselves in a consistent and professional manner while at work and make clear who they are, she said, but can also decide to be flexible on this issue.”

Here’s a link to an earlier story at Poe News that describes an earlier arrest using simpler technology.

There is an interesting story in Networking World magazine describing how DNS tools helped track down the “Craiglist killer”.

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As always, the authoritative peer-reviewed type of article here below the fold.

Levin, Avner and Sánchez Abril, Patricia, Two Notions of Privacy Online (2009). Vanderbilt Journal of Entertainment & Technology Law, Vol. 11, pp. 1001-1051, 2009. Available at SSRN: http://ssrn.com/abstract=1428422
My favorite quote: “According to network privacy, information is considered by online socializers to be private as long as it is not disclosed outside of the network to which they initially disclosed it”.

Visually-impaired gamer sues Sony

jaymoffitt — Wed, 11 Nov 2009 14:06:34 +0000

Sony is being sued again, this time it is a visually-impaired gamer who does not feel he is getting proper support from the gaming company. You can also read a report at Gamepolitics.Here are a couple of articles with different viewpoints of the case.

From the Website Ablegamers (for challenged gamers of all types)

This comment on Gamertell thinks it may be a bit frivolous…

Just a personal note: a gaming environment is an ideal environment for people with challenges of all types to lift themselves up and gain valuable experience in life and also in work environments.

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Here are some representative articles covering the same subject.

Please read this article in the Jerusalem Post about the “White Cane” for a blind person. The most remarkable quote about the software is “Users can can feel tension beneath their fingertips through the joystick as they navigate around a virtual environment. The joystick stiffens when the user meets a virtual wall or barrier.”

Audio game maker is The Audio Game Maker is “part of Game Accessibility.com, a series of activities conducted by the Accessibility foundation in order to improve the accessibility of computer games for players with impairments.”

Gaming with a Physical Disability (Blindness)

From Metaverse Journal, an article about amputees and gaming.

A very good Journal article (beware, large pdf) which talks about health issues in Second Life and other virtual worlds. The top 5 groups that were found were

(1) Support for Healing 899 members (Mental health and other issues)
(2) Transgender Resource Center 845 members (Gender identity issues.)
(3) Positive Mental Health 763 members
(4) Wheelies 565 members. (Disabilities themed nightclub.)
(5) Depression Support Group 427 members issues.

And some Second Life links to groups for individuals challenged in different ways.

Second Life for the Visually Impaired
Alternate viewers (that may assist the visually impaired, as well as others).. be sure to check the Second Life blog to make certain the viewer is allowable under their Terms of Service.
Second Life accessibility hasn’t been updated in a while but the links page is great.

I’d invite any SL’ers reading this column to contribute their group relevant to this discussion in the comments.

WOW provider sued over stock plunge

jaymoffitt — Fri, 23 Oct 2009 16:38:13 +0000

According to multiple sources, this article by Pr-inside reports that a US shareholder sues China’s the9 and executives. Here is the full original story on Reuters that they refer to. The main focus is that “A U.S. shareholder sued Chinese online role-playing game developer The9 (NCTY.O) and its top executives on Wednesday, claiming they made incomplete or false reports that caused shareholders to buy stock at artificially inflated prices.” The article explains “part of the lawsuit centers on a The9 affiliate’s agreement with Vivendi Universal Games to license World of Warcraft (WoW) in China from mid-June 2005.” The lawsuit was filed in the Southern District of NY earlier this week.

The9 lost that right earlier this year. As reported fully on Bloomberg News in April of this year, “The9 Ltd., a Chinese online-game provider, fell the most since November 2007 in New York trading on speculation the company failed to renew its license to operate the “World of Warcraft” game. ” That same article noted that “NetEase, China’s second-biggest online games provider, rose 2 percent to $29.79, a record high.” Those rumors were substantiated as NetEase is now the provider for WOW in China.

For more specifics on the class-action lawsuit, you can part of the law firm’s press release at Coughlin Stoia Geller Rudman & Robbins LLP , and also reference the complaint itself at their their home page.

There is also a very concise summation of the case on JLM Pacific Epoch which distill the scenario in a couple of paragraphs. One notable quote, “Shares in The9 dropped 18% to $8.35 on July 15, after The9 reported a $36.9 million or 72% reduction in 2008 net income due to the loss of its operating license for World of Warcraft.”

If you’re desiring a little more background information on China and gaming, you can read:

Gamedaily: China to See Nearly 65 Million Online Gamers This Year

Gameindustry.biz interview with Blizzard(WOW publisher) about the size and scope of the manpower and computer resources used to run the online world across the globe

Gamasutra article from September 21 that World Of Warcraft Restarts Commercial Operation In China. The most notable quote: “Close to half of World of Warcraft’s 11.5 million users are Chinese — but analysts such as Lazard’s Colin Sebastian have estimated that, due to the Chinese business model and licensing structure, the region accounts for just 6 percent of WoW revenues”.

And an article from 2005, but still extraordinary in its relevancy, by “Gaming Steve”. It details his reading of the public disclosure required, and some financial truths, and then further some estimates, that can be gleaned from that public information.

I will be following this case as it unfolds, and hopefully we will all learn what level of transparency is required by a gaming company, publisher, or distributor in its public statements. As the money made from virtual worlds and games increases exponentially, we will most likely look forward to an increase in similar types of lawsuits.

Consumer sues Sony over PS3 update

jaymoffitt — Fri, 09 Oct 2009 13:02:22 +0000

For the second time in as many weeks, a major company is the litigant in a class action. The consumer (Kennedy) alleges the PS3 firmware update 3.0 harmed his system, and that the followup update 3.01 further damaged his PS3 by affecting his Blu-Ray drive on the PS3. Here are the major game reporting outlet stories, and I conclude with a small commentary on the case.

The Escapist reports Sony being sued over PS3 firmware update, the article focuses on the gamers perspective.

The Edge reports about Sony being sued in class-action because of PS3 update, be careful if you’re on a slow connection, it has an embedded video clip.

The original story that the gaming magazines refer to in Courthouse News, reporting the class-action filed in the Northern District of California.

The lawsuit vital statistics are as follow: termed CV 09 4791, filed in N.D. of CA, SF Div, on Oct 2, 2009. The complaint (linked here) alleges:

1. Breach of Implied Warranty

2. Negligence

3. Negligent Misrepresentation

4. Unjust enrichment

5. Trespass to chattels

6. California Unfair Competition Law, Business and Professions Code Section 17200

7. California Consumer Legal Remedies Act, Civil Code 1750

Jury Demand

If you’re interested in all the foundations of the allegations and complaint for relief, you can read that in the 18-page complaint mentioned above. Notable allegations include #12 “Although, as a general rule, Sony “encourages” PS3 owners to install the latest versions of system software, Sony required users to install the Firmware 3.0 update.” And another important factor, #21 “Upon information and belief, the class consists of at least tens of thousand of members in diverse locations throughtout the United States…” is listed.

This case is to my knowledge the first of this exact type, and I will be following it as events warrant.

Jay Moffitt is a TN attorney. The statements here are not legal advice, and no attorney/client relationship is created. Jay Moffitt claims no certification in this specialty, and TN does not offer a certification in this area of law. Copyright, Jay Moffitt, 2009. Comments are welcomed and will be answered promptly and courteously.

Video Game Lawyer Money; Parrish v NFLPA aka Madden Case

jaymoffitt — Wed, 23 Sep 2009 16:06:49 +0000

I know you’re thinking, where’s the Video Game lawyer money?
The beginnings of these cases are all so celebrated, so noteworthy, posted on the game sites, the news sites, but where are the awards?

Recently, retired NFL players were awarded a $28 million judgment, according to the legal newsletter on JDSupra.

Here is the Justia page of all the relevant legal documents
As you can see from the filings, the first official action was February 14, 2007, and the judgment was issued on November 10, 2008 for 7.1 million in damages and 21 million in punitive damages.

After EA appealed the judgment, a settlement was reached in excess of $26 million and announced at a press conference June 5, 2009.
These types of cases are hard-fought and long-running, and seldom make the headlines once a resolution is met.

The repercussions, though, are like a ripple in the water that lingers for a good while after the settlement is made.
1. EA announced that they would no longer be making the vintage player’s profiles available as a game feature in upcoming versions of Madden Football.
2. Former college football player Sam Keller sues over use of his likeness by EA Sports. (Great indepth discussion available here)
3. Former college basketball player Ed O’Bannon sues over use of his likeness by EA Sports.
4. The NCAA has spent $84 million on litigation the last 10 years. Of course, only a portion of that has been to fight class-action lawsuits.
5. The Wall Street Journal also makes the connectionbetween the NFL’s settlement in the retired players’ lawsuit, and the almost-immediate filing of the NCAA players’ (Keller, O’Bannon, etc.) lawsuits.
6. Finally, a view that the lawsuit might impact other documents amateur players must sign for the NCAA, beyond the video-game licensing even to jerseys, T-shirts, and other intellectual property.

So as you see, it’s not just video games, anymore.

Jay Moffitt is a TN attorney. The statements herein do not constitute legal advice, and no attorney-client relationship is created. Jay Moffitt does not claim a certification in the subject matter, and Tennessee does not offer a certification in the subject matter. Post copyright September 23, 2009.