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Court Orders Pirate to Reimburse Developer $30,000

Aug 19, 2008 1:54pm CST tags: Legal, Piracy, PC Gaming
London's Patents County Court has ordered an unidentified woman to pay nearly $30,000 in fines to Topware Interactive for illegally sharing one of the studio's games online, according to a Telegraph report spotted by MCV.

The woman, who is among the first to be sued for copyright violation in the United Kingdom by a game company, was fined damages of £6086.56 ($11,325) and costs and disbursements of £10,000 ($18,607) for distributing Topware's Dream Pinball 3D.

The ruling establishes a strong precedent for further action against copyright violators. London law firm Davenport Lyons, which represents Topware Interactive, is also pursuing civil proceedings against 100 people suspected of illegally uploading copyrighted software.

"Illegal file-sharing is a very serious issue resulting in millions of pounds of losses to copyright owners," said Davenport Lyons senior partner David Gore. "As downloading speeds and internet penetration increase, this continues to be a ... Read more

Epic 'Defrauded' Developers with Unreal Engine, Says Silicon Knights

Aug 18, 2008 5:50pm CST tags: Too Human, Silicon Knights, Legal, Epic Games, Unreal Engine
Silicon Knights president and founder Denis Dyack commented on the legal struggle between the Too Human (360) and Unreal Engine purveyors Epic Games, expressing optimism that "justice will be done" in the ongoing court battle.

"The trial is proceeding," Dyack told Develop. "We feel really good about our claims, and we're hopeful that justice will be done. We all feel really strongly that they have defrauded us, and a major portion of the industry."

The dispute centers around Silicon Knights' claim that Epic held off on delivering promised features in its Unreal Engine 3 middleware in order to focus on... Read more

Illegal Game Law Costs California $282K

Aug 05, 2008 2:39pm CST tags: Legal, ESA
ESA CEO Michael D. Gallagher In the wake of Califonia's recent budget woes, the state today joined the ranks of Minnesota, Illinois and Louisana as it reimbursed the ESA $282,794 for legal fees relating to last year's overturning of an unconstitutional video game sales law.

"California deserves more from its legislators than pursuing flawed legislation," said ESA CEO Mike Gallagher (pictured left). "Rather than tackling real problems affecting Californians, they chose to waste time, money and state resources. It is shameful that legislators pursued personal agendas in spite of the facts."

According to the ESA, California is currently facing a $15 billion budget gap, with 100,000 state employees recently laid off, Governor Schwarzenegger seeking to cut wages for another 200,000, and the state reducing its Medicaid support by 10%.

The loosely-worded law would have created a new state-mandated rating label for games, with retailers fined if minors obtained a title that contained "serious injury to human beings in a manner that is especially heinous, atrocious, or cruel."

"The definition could literally apply to some classic literature if put in the form of a video game," remarked Judge Ronald Whyte, who ruled the legislation as unconstitutional.

California is currently seeking to appeal Whyte's decision, causing Gallagher to remark, "It is unfortunate that the state is stubbornly pursuing an appeal that is likely to lead to even more court-awarded fees."

Final Fantasy XI Prompts MMO Legislation

Aug 01, 2008 6:15pm CST tags: Final Fantasy XI, Legal
The Illinois General Assembly has passed a law requiring the developers of online games to allow account cancellations to be conducted online, prompted by complaints lodged at Square Enix's MMO Final Fantasy XI (PC, PS2, 360).

According to Silicon Alley Insider, State Representative Raymond Poe introduced the bill following complaints of Illinois resident Frank Edwards. who ran into difficulties cancelling his son's Final Fantasy XI account.

Unable to locate any means of discontinuing the service online, Edwards called customer support, spending an hour and 45 minutes on hold before the account was finally closed.

The law stipulates that a game's website include clear instructions on how to cancel an account online, adding that no publisher or developer may require... Read more

NFL Veteran Brown Sues over Madden Number Use, Hopes to Halt Sales and Obtain All Relevant Profits

Aug 01, 2008 12:04pm CST tags: Madden NFL 09, EA, Sony, Legal
NFL Hall of Famer turned actor Jim Brown has sued game makers Electronic Arts and Sony regarding his alleged appearance in the Madden NFL series, seeking to halt game sales and obtain all profits derived from any Madden games with his likeness.

The suit stems from Brown's recent discovery that a Cleveland Browns player using his number, but not his face or name, appeared in Madden NFL 2001, reports GameSpot.

Brown describes the character as "a muscular African American player," claiming that this hurts his "inherently distinctive, and arbitrary trademark as the All-Time Great Cleveland Brown Running Back."

The one-time Cleveland Browns number 32 claims that he "never signed away any rights that would allow his likeness to be used [in a video game]" and that both companies "unjustly enriched and have received and continue to... Read more

NY Game Ratings Law Protested by Rights Groups, Labeled Unconstitutional

Jul 23, 2008 10:33am CST tags: Legal
A day after New York governor David Peterson signed a law that will require all video games sold at New York retailers to display an ESRB content rating, two civil rights groups have spoken out and labeled the legislation as unconstitutional.

The New York Civil Liberties Union and the National Coalition Against Censorship both argue that the law violates the First Amendment by letting the government regulate how video games are sold and played based on the content contained within.

Taking effect in 2010, the law further mandates that "new video game consoles" include "parental lockout features"--something already offered by the current crop of consoles--and that New York establish a council to study the effects of virtual violence.

"Parents, not government committees, should be responsible for making those judgments," NYCLU executive director Donna Lieberman told eFluxMedia. "If the legislature wants to reduce youth violence, it should fund educational... Read more

Game Ratings Bill Becomes New York Law

Jul 22, 2008 2:02pm CST tags: Legal
New York governor David Paterson today signed a proposed game-related bill into state law, one that will establish an advisory council to study the effects of virtual violence.

Taking effect in 2010, the law further requires that "new video game consoles" include "parental lockout features"--something already offered by the current crop of consoles--and that games sold at retail display an Entertainment Software Rating Board content label on their packaging.

At present, most retailers in the United States refuse to stock a game if it does not carry an ESRB content rating on the box. The ESRB and Entertainment... Read more

Nintendo Facing Controller Ban Due to Patent Suit, Anascape Still Owed $21 Million

Jul 22, 2008 12:50pm CST tags: Nintendo, Legal
Nintendo's request for a retrial in a recent patent infringement case by Anascape has been denied by U.S. District Judge Ron Clark.

In the initial ruling, Nintendo was found to have violated Anascape patents relating to analog sticks in its GameCube, WaveBird, and Wii Classic controllers, and was ordered to pay $21 million.

However, Nintendo is still appealing the overall ruling to the Federal Circuit court.

Anascape has since filed for a motion to stop retail sales of the above Nintendo controllers, with the order expected to go through today. If approved, that ban will be suspended while Nintendo appeals the case.

According to Bloomberg, Anascape claims Nintendo's controllers have "clogged the channel" that would allow it to begin selling controllers. Both Sony and Microsoft were named in the initial lawsuit, and both settled out-of-court for undisclosed sums in May.

Nvidia to ATI: Lets Align Our Marketing Plans

Jul 18, 2008 12:59pm CST tags: NVidia, ATI, Legal
That anti-trust suit against Nvidia and ATI from back in 2006 is still ongoing, with some interesting developments occuring recently. The two graphics chip manufacturers were hoping to keep certain evidence from being presented to a jury, but Judge William Alsup was not impressed. Especially since this was emailed by Nvidia's Dan Vivoli to ATI's Dave Orton in 2002:
"I really think we should work harder together on the marketing front. As you and I have talked about, even though we are competitors, we have the common goal of making our category a well positioned, respected playing field. $5 and $8 stocks are a result of no respect."

The ongoing class action suit alleges that ATI (now AMD) and Nvidia kept prices artificially high by releasing products at the same time and at similar prices. NVidia recently slashed prices after ATI released a highly competitive video card at a much lower price point.

Minnesota Pays ESA $91K for Illegal Game Law

Jun 30, 2008 1:37pm CST tags: ESA, Legal
The state of Minnesota has reimbursed $65,000 in attorney fees and other expenses spent by the Entertainment Software Association in its successful challenge of an unconstitutional game law, the organization announced today.

The ESA, which is dedicated to the business and public affairs needs of game developers and publishers, also noted that it has now been awarded close to $2 million in fees and expenses spent battling unconstitutional game law in nine other districts.

"Minnesota's citizens should be outraged at paying the bill for this flawed plan. Minnesota's public officials ignored legal precedent and instead pursued a political agenda that ultimately cost taxpayers money," said ESA CEO Michael Gallagher.

Signed into law in June of 2006, the law sought to penalize minors for the rental or purchase of games rated M for Mature and above. An injunction to halt the ... Read more

Rockstar Pays Under $30,000 to Offended Customers In 'Hot Coffee' Lawsuit Settlement

Jun 25, 2008 10:00pm CST tags: Rockstar, Take-Two, Legal, Lawsuit, Controversy
Just 2,676 people stepped forward to file claims in the "Hot Coffee" class action lawsuit against Grand Theft Auto: San Andreas (PC, PS2, Xbox) developer Rockstar Games, amounting to a payout of less than $30,000, according to the New York Times.

Per the terms of the settlement, customers offended by the so-called "Hot Coffee" content in Grand Theft Auto: San Andreas—essentially amounting to a sex minigame accessible only by altering the game's code—could submit compensatory claims of $5 to $35 each, or a revised edition of the title stripped of the offending code.

GTA publisher and Rockstar parent company Take-Two estimates that the claims will amount to less than $30,000—much less than the $1.3 million in legal fees the company racked up dealing with the lawsuit.

"Am I disappointed? Sure," said lead plaintiff attorney Seth R. Lesser. "We can't guess as to why now, several years later, people care or don't care. The merits ... Read more

New York State Senate Passes Game Ratings Bill

Jun 25, 2008 7:00pm CST tags: Legal, Controversy
The New York State Assembly almost unanimously passed a bill proposing an advisory council for videogames this week, reports GamePolitics.

Introduced by Staten Island Republican Sen. Andrew Lanza, the bill creates "an advisory council on interactive media and youth violence," and mandates that consoles be equipped with controls "to prevent the display of violent or indecent video games," such as the parental lock functions available on the PlayStation 3, Xbox 360 and Wii.

In the final minutes of argument, Senator Lanza said that while videogames deserves recognition under the U.S. Constitution as protected speech, the aim of the bill is to bring government oversight to game ratings beyond the service provided by the Entertainment Software Ratings Board.

"I want to be clear. This bill does not prohibit the sale of any video to anyone," the Senator said. "This simply says that every video game sold in the state of New York simply should have a rating consistent with what the ESRB does presently... Read more

Tecmo, Itagaki Submit Contradicting Evidence, Suspicions of Falsified Documents Arise

Jun 19, 2008 10:00pm CST tags: Tecmo, Legal
As the legal showdown between Japanese developer Tecmo and soon-to-be former Team NINJA subsidiary head Tomonobu Itagaki commences, both sides have submitted contradicting evidence to the court, suggesting something is amiss.

In the lawsuit, Itagaki states he was promised, but never received, a completion bonus for his work on Xbox 360 near-launch title Dead or Alive 4.

As evidence of this, Itagaki submitted a contract that affirmed his claims of a promised bonus. Tecmo offered the court a similar contract as well, but according to Kotaku and IT Media, Tecmo's version of the contract was missing the bonus clause.

At present, the blatant contradiction between the two pieces of evidences has not been addressed. However, contradictory documents in another Tecmo court case suggests that some of Tecmo's official documents contain false information... Read more

Son of Godfather Author Sues over Games

Jun 19, 2008 5:30pm CST tags: The Godfather, The Godfather 2, Legal
Anthony Puzo, son of deceased The Godfather author Mario Puzo, has filed a lawsuit against Godfather license holder Paramount Pictures claiming breach of contract over a licensed 2006 video game.

Demanding at least $1 million in compensation, Puzo, who inherited his father's estate in 1999, says he never received any royalty payments from the licensed, EA Redwood Shores-produced video game.

Containing elements of Francis Ford Coppola's Godfather film trilogy--itself based on Mario Puzo's acclaimed novel--the game arrived on PC, PlayStation 2, Xbox 360, Xbox, and PSP. PlayStation 3 and Wii editions of the title followed in 2007.

Anthony Puzo believes he is entitled to said payments due to an alleged 1992 agreement between his father and Paramount. According to Reuters, the supposed deal entitled the author's estate to "a significant share of the revenue of any audio-visual products sold or rented with elements of the 'Godfather' movies."

A second Godfather game has since been revealed. Though platforms and a release date are unknown, the upcoming sequel is said to allow control of a mafia empire from the streets or from an RTS-like top-down view.

Tecmo Denies Exodus Rumors, Says Employees 'Appropriately Compensated'

Jun 19, 2008 3:56pm CST tags: Tecmo, Legal
Japanese developer Tecmo has issued a statement denying allegations a staff exodus and clarifying details surrounding the several pending lawsuits against the company, reports Game|Life.

The company dismissed rumors that more as many as three dozen members of Tecmo-owned studio Team Ninja left in the wake of departing chief Tomonobu Itagaki, who announced his resignation earlier this month. The former studio lead also filed suit against Tecmo, claiming over $1.4M in unpaid bonuses.

Tecmo noted that the lawsuit filed by two of its employees alleging gross labor violations only directly involves those two specific employees, though it did not address allegations that the legal action represents all the of its 300 workers.

"Although a lawsuit was filed by the two employees, on April 1, 2008... Read more

Tecmo Files Gag Order Against Team Ninja Chief

Jun 18, 2008 2:49pm CST tags: Tecmo, Legal
Embattled Japanese developer Tecmo has filed for a gag order with the Tokyo District Court to restrict former Team Ninja lead Tomonobu Itagaki from speaking further about the several pending lawsuits against the company.

According to Kotaku, the order restricts Itagaki from disclosing or leaking information regarding Tecmo's software and development, using the media to criticize Tecmo products and employees, speaking to the press about Tecmo and making slanderous remarks to third parties.

The latest volley in the developing legal tumult between Tecmo and virtually its entire workforce, the gag order was almost certainly prompted by the Ninja Gaiden II director's very public announcement of his resignation and legal action ... Read more

Every Tecmo Employee Sues Over Labor Violations

Jun 17, 2008 9:56am CST tags: Tecmo, Legal
As previously rumored, more Tecmo employees have filed suit against the Japanese developer in the wake of Ninja Gaiden II director Tomonobu Itagaki's resignation and legal action regarding unpaid bonuses.

However, this most recent lawsuit far, far exceeds the scope of earlier rumors.

Said to represent all of Tecmo's 300 employees, the latest alleges the company of gross labor violations. According to the text of the suit, as translated by Kotaku, Tecmo instituted an illegal "flexible hours" scheme four years ago to avoid paying overtime.

The suit states that Tecmo has routinely ignored over 100 overtime hours per month since the system was implemented, and has falsified documents to... Read more

Report: Team Ninja Exodus Follows Itagaki Departure, More Lawsuits on the Way

Jun 16, 2008 3:15pm CST tags: Ninja Gaiden 2, Tecmo, Legal
As many as three dozen members of Team Ninja may be following former studio chief and Ninja Gaiden II (360) director Tomonobu Itagaki after his sudden resignation and lawsuit against parent company Tecmo earlier this month.

According to a report from 1UP, the departing team members will also serve Tecmo with a class action lawsuit over unpaid bonuses for previously completed games. In filing his own lawsuit last month, Itagaki claimed damages of more than $1.4M in unpaid bonuses.

Moreover, the report adds that Tecmo may have violated Japanese law by withholding information about Itagaki's suit from its shareholders. Corporate law in Japan states that any lawsuit filed against a publicly-traded company must be reported ... Read more

Nintendo Sues Nyko Over Wireless Nunchuks

Jun 13, 2008 11:15am CST tags: Nintendo, Legal, Nyko
Wii maker Nintendo has sued third-party accessory manufacturer Nyko, claiming that Nyko's line of Wii Kama Wireless Nunchuks violate Nintendo's trademarks and patents.

The lawsuit alleges that Nyko "wholly appropriates the novel shape, design, overall appearance and even the color and materials used in the Nintendo Nunchuk controller," according to documents obtained by Bloomberg.

Left, Nyko's Kama Nunchuck. Right, Nintendo's Official Nunchuk

Whereas Nintendo officially produces a Nunchuck add-on that connects to the Wii Remote with a wire to provide more buttons and an analog stick, Nyko's Kama Nunchuks connects to the Wii Remote wirlessly but offers the same functionality.

"We have not knowingly violated anyone's intellectual property and we're still examining this," stated Nyko representative C.C. Swiney.

Gamers Sue EA for 'Anticompetitive Conduct'

Jun 12, 2008 10:34am CST tags: Madden NFL 09, Madden, EA, Take-Two Interactive, 2K Sports, Legal
Two gamers have filed a class-action lawsuit against Madden publisher Electronic Arts.Filed in the US District Court of Northern California, the suit states that EA's 2004 and 2005 obtainment of the exclusive NFL, AFL and NCAA licenses constitutes "blatantly anticompetitive conduct."

In response to the allegations, the duo wish to see EA surrender the profits that stemmed from those actions, the voiding of the exclusivity contracts, and restitutions offered to those that have purchased any EA-branded football game since 2005.

EA's exclusivity arrangements came after publisher 2K Sports debuted a competing football title, NFL 2K5, at $19.99 in 2004, causing EA to drop the price on Madden 2005 from $49.99 to $29.99.

"This vigorous competition benefited consumers," claim court documents obtained by GameSpot. "Electronic Arts could have continued to compete by offering a lower price and/or a higher quality product. Instead, Electronic Arts quickly entered into a series of exclusive agreements with the only viable sports football associations."

Only one 2K Sports-branded football title has been released since then, the league-less All-Pro Football 2K8, which sold just over a quarter of a million units.