While privacy and data security are hot topics everywhere these days, they are of particular interest to the game industry. Vast quantities of consumer data are generated every day in the game industry, including through consoles, websites, and mobile devices. Data can be a significant asset in that it provides valuable insight into a consumer’s behavior which can be used to improve games and target messages and offerings. However, data can also be a liability.

Data breaches in games are prevalent. In 2011 alone, Sega, Nexon, Codemasters, Sony, Bethesda, Square Enix, and Valve were all targets of successful attacks. We can be certain in 2012 that any game company handling substantial personal information will continue to be a target as well.

The costs associated with a data breach are usually described as several dollars to several hundred dollars per affected record (depending on the extent of the breach and the items included in the long-term costs). Considering that many of the data breaches last year affected more than a million records, those costs are significant. Read more

Before the newest addition of Electronic Arts’s (“EA”) snowboarding franchise “SSX” was set to hit stores, it was no surprise it looked to the domain <ssx.com> for a promotional website. Only one problem – Abstract Holdings International, LTD (“Abstract”) had bought the domain name back in October 2011. EA didn’t take the news very well and filed a complaint with the National Arbitration Forum (“Forum”) seeking transfer of the domain name, claiming that Abstract had no legitimate interest in the website, the purchase was made in bad faith, and ownership of the “SSX” trademark. The full text of the decision can be found here. Read more

According to Gamasutra, Adidas has filed a lawsuit against THQ for breach of contract, alleging that the video game publisher failed to complete and release a game for its interactive athletic training system, miCoach. The lawsuit alleges that THQ entered into a contract to create the game, which was supposed to launch in January 2012. Adidas seeks a jury trial and more than $10 million in damages.

Judging from the 2011 press release on behalf of both Adidas and THQ, the miCoach is a digital exercise tool similar to the Nike+ system. The video game, which was tentatively titled MiCoach 24/7, was developing as an interactive experience, featuring Adidas athletes like Dwight Howard, who would guide users through sport-specific personalized training programs. The miCoach system would provide users with real-time feedback on their actual in-game performance via the miCoach heart rate monitor. Through its interaction with MiCoach 24/7, the miCoach hardware was also set to allow users to synchronize their workout devices with Xbox 360 Kinect or PlayStation Move, tracking workout data gathered while away from the game. Read more

While games may be protectable speech in the United States, the law does not yet go so far as to protect the work we put into our games. In 2008, the St. Paul Pioneer Press published a story about a Final Fantasy XI player who was a victim of an unusual theft: his online avatar and all of his possessions, including a large cache of in-game currency, were stolen from him. The victim, Geoff Luurs, reported the theft to the Blaine Police, and claimed the value of the property was around $3,800, according to his research on ige.com, a site that specializes in the real-world sale and purchase of property in MMOs. According to the Pioneer Press, the “[i]nvestigators said points earned in games are devoid of monetary value. So if [the perpetrator] didn’t steal any value, he didn’t commit a crime.”

While the United States does not yet recognize the real-world value of in-game money, South Korea already does. China also has laws regulating virtual goods. These laws suggest that, at least in Asia, legislators are noticing the real-world value that virtual goods can have. In one extreme case, a group of men in China were convicted for theft of virtual goods and currency resulting from real-world extortion in 2009. In that case, the court held that the victim’s “time and real money” were paid to accumulate the value in the virtual goods, and that this value was protectable by law.

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In early January 2012, Electronic Arts (“EA”), creators of Battlefield 3 (“BF3”), filed a Complaint for Declaratory Relief in the Northern District of California against military helicopter manufacturer Textron. Textron is the owner and manufacturer of military helicopters that are depicted in BF3, including the UH-1Y, V-22 Osprey, and AH-1Z helicopters (the “Helicopters”). In late 2011, Textron notified EA in a cease and desist letter to remove any imagery of the Helicopters from BF3 because EA did not ask for permission or receive a license to use Textron’s trademarks or Helicopter’s trade dress in BF3.  Assuming any argument under the First Amendment fails, for whatever reason, would EA’s use of Textron’s trademarks and depiction of the Helicopters violate any of Textron’s federal rights? First, the court will have to decide whether EA violated any rights involving any registered trademarks. Secondly, the court will have to decide whether EA has infringed on Textron’s trade dress rights.

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It’s probably no surprise that an arcade game that some say defined a generation was dealt a severe blow to its revenue by video game consoles in the late 70’s and 80’s. Although the digital age has ended future memories of hanging-out at the mall’s arcade after trying on jeans with your mother, all is not lost. Pinball lives on.

Companies like Budapest-based independent developer Zen Studios continue to bring the excitement of pinball out of the arcade and into the living room, pocket, and even the line at the grocery store. In a recent article by Caleb Bridge, “Zen Studios keeps pinball alive with licensed properties,” Neil Sorens, Creative Director of Zen Studios, reveals that each version of Zen Pinball requires a “slightly different release on each platform.” Reasons for this can stem from marketing costs to formatting issues; however, one thing is for certain: each version likely requires a new licensing agreement between the game and the console it’s released on.

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This post in no way refers to the defensive rules employed by John Daly, Isiah Thomas, and Bill Laimbeer’s “Bad Boy” Detroit Pistons against “Air Jordan” in the early 1990s, but rather gives an explanation as to why his “Airness” was not a featured player in your favorite National Basketball Association (“NBA”) video games in the ‘90s.
 
The National Basketball Players Association (“NBPA”) typically negotiates group-licensing rights as part of its collective bargaining agreement (“CBA”). As part of the CBA, the NBPA splits a portion of the revenue with all of its players generated from the licensing deals involving their likeness and names . Each player is paid a fixed amount from the licensing deal in a lump sum during the season’s pay schedule (crazy to think Lebron James and Kyle Korver get paid the same amount from a licensing deal).  The licensing division of the NBA markets items ranging from collectibles, jerseys, t-shirts, the beloved bobble head dolls, trading cards, and of course video games. It is very rare for a player to retain rights to his likeness and opt out of a group licensing agreement. Not many players have the market-appeal, branding, or care to seek more financially rewarding marketing deals. However in 1992, Michael Jordan defied the odds once again when his agent, David Falk, secured a separate licensing agreement with the NBA regarding Jordan’s likeness and naming rights. Falk’s shark-like skills allowed Jordan to strike any deal with any video game publisher separate and apart from the NBPA. Ultimately, this allowed for Jordan to keep more money in his pocket despite the 15% endorsement fee for his agent. Though this was a unique move, Sir Charles Barkley, not to be outdone by his close friend and colleague, pulled the same maneuver in 1997.
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We all know what a basic contract is: an agreement entered into voluntarily by two or more parties with the intention of creating some sort of legal obligation. When one party breaches and abandons his or her obligation set forth in the contract, this terminates the contract for purposes of further performances. However, breach of contract allows the other party to bring suit and seek recovery. Makes sense. So what happened when 16 Grammy winner Beyoncé Knowles agreed to make the video game “Starpower: Beyoncé” with game developer Gate Five, but then, well, didn’t? She was slapped with a $100 million lawsuit by Gate Five.
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Despite most sectors of the entertainment industry taking hits in sales due to the declining economy, video games somehow not only maintained their core clientele, but, according to the Entertainment Software Associations 2010 report, have seen an annual growth rate of 10% from 2005-2009.  So it’s of no surprise that educators are taking notice and creating curriculum and programs aimed specifically at those interested in the video game field.  From schools designed to help elementary school kids learn through games to video game degrees in higher education, no longer does society see video games as something that your little brother plays, but rather as a possible career choice to those already interested in games.

New York University has been an innovator in the latter category of education and games, recently creating an entire center focused on video game design and game creation.  A tour of the Center boasts a few classic arcade titles sitting in the main lobby for all to enjoy.  And while this might be a gamer’s dream, the real surprise lies in the Game Center’s Open Library.  The Library has over 1000 titles from every genre and platform, from the Atari and Nintendo to the PS3 and Xbox 360, available for members to play during the Center’s open hours.  It even has themed weeks, such as a Legend of Zelda exhibition and even a Horror Week, showcasing the best of the survival horror genre.  While the library is a great idea and amazing addition to the curriculum the Center offers, one must wonder if this gamer’s paradise possibly infringes some intellectual property rights?  While it is possible that there are patent issues (all the hardware used is most likely patented) as well as trademark issues (any list stating the titles the Open Library has is probably full of trademarked names), this article will focus on the copyright aspect of the Game Center.

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Guns ‘N Roses (“GNR”) is set for induction into the Rock and Roll Hall of Fame on April 14 in Cleveland, Ohio. Ever since the Hall of Fame announced that GNR would be inducted, fans have been wondering whether the event will bring about a reunion between former bandmates, Axl Rose and Slash. Rose’s resentment toward Slash has been well documented ever since Slash departed GNR in 1996. While some hope that time heals all wounds, nothing can reinforce ones’ displeasure over another quite like a lawsuit. This may indeed be the logical conclusion upon learning of Rose’s lawsuit against Activision Blizzard, Inc. (“Activision”). Read more