Video Game Law Review - August 2, 2006

Hello again friends. Welcome back to this week's eidtion of the Video Game Law Review. Interesting posts and qubs about so let's get to it:

• Is Modding Good for Games? - Blogger Ozymandius says "no." He raises three reasons why modding (allowing users to tweak existing published content with custom items of their own) is not good for the console market: (1) Downright piracy = bad; (2) Importing games (playing overseas only versions that don't normally play in US consoles) = bad also (a lot like pirating) & (3) creating new user content = bad b/c console industry is a "razor/razor blade industry". What that means in English is that the game and console makers are only able to thrive if you continue to by the games and peripheral stuff they produce after you buy the console. Ever notice how a 20 Blade Quatro Gillette Razor will cost you 10.95, but the refill pack costs $15.95? Similar idea here: the real money is made off of the software. Modders cutting in on that market hurts the industry, so Ozzy seems to think. I beg to differ. In my post titled, A Mod Supported XBox Live Marketplace Would Help Microsoft Beat Sony from April 3rd 2006, I go into detail about how console makers like Microsoft can make real legal tender off of microtransactions via XBox Live (and in the spirit of Ebay's 2% transaction fee) of modded/player created content. I think that the value we can bring to our clients as legal advisors is getting them to see revenue that they never thought was there. Modding may just be the next frontier.
• Activision Labor Law Suit - Number 2American games maker Activision is facing suit from a former employee for alleged violations of federal and state labor laws. Game Spot wrote: "former Activision employee Cathi Canuti accuses the publisher of consistently violating labor laws for the last three years by not properly paying employees for the hours they worked" citing violations of the Fair Labor Standards Act by "knowingly misclassifying some of its employees as exempt from overtime pay and minimum wage laws." She also contends that the publisher failed "to provide its employees with an accurate record of their hours worked, adding that the company was engaging in unfair competition by underpaying members of its workforce." And of course she has thrown in the wrongful termination claim for being fired when she brought complaints to her supervisor. "Canuti is asking for unpaid wages with interest for current and former employees, the legal costs associated with filing the suit, and punitive damages."
• Federal Judge Throws Out MN Violent Game Bill - Gamasutra reports that a federal district judge has thrown out the MN Violent Game Bill on grounds that it is unconstiutional. Similar laws have been struck down in eight other jurisdictions, but MN's law was a bit different for it would fine children (i.e., their parents) $25 for trying to buy or rent M-rated games (18 and older). This is a departure from the traditional fine-the-clerk approach. The judge further said there was no evidence presented that solidly linked violent videogames to actual violence in children.