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Courts Block Sale of Used Video Games

If the appeal does not win we are all about to become criminals!
 
It is no secret that game publishers are not in love with the idea of reselling used games. They typically do not see any money from those sales, and many gamers prefer to wait for a game they already plan on buying in order to save a few bucks. EA has already begun to institute a charge for gamers that buy their copies used and wish to play online, a tactic that many other companies are considering mimicking, but a new court ruling may make that a moot point.
 
The Dallas News is reporting that the San Francisco-based 9th U.S. Circuit Court of Appeals has ruled in the case of Vernor vs. Autodesk that software publishers have the authority to prohibit the resale of their software to another user. The ruling contradicts previous decisions have claimed that software could be resold under the “first sale doctrine.”
 
“The first sale doctrine has been a major bulwark in providing public access by facilitating the existence of used book and record stores, video rental stores, and, perhaps most significantly, public libraries,” R. Anthony Reese, a University of California law professor said in a 2003 statement.
 
Although the ruling is specifically related to computer software which has a license agreement specifically built in and spelled out in no uncertain terms, it could potentially include all electronic equipment that is sold second hand. In other words, everything from garage sales to GameStop could face shut down.
 
GameStop is a seller of used and new video games, but the company relies on the high margins of used game sales, which make up 31.4-percent of all the company’s sales per quarter, which equates to roughly $565.5 million. Thanks to the higher profit margins, GameStop’s used game sales make up 46-percent of the company’s gross profits, roughly $260 million per quarter.
 
“We hope people understand that when the game’s bought used, we get cheated,” Cory Ledesma, a creative director at THQ said in an interview with computerandvideogames.com, which was reprinted by the Dallas News.
 
The court case began when a seller named Timothy Vernor tried to sell copies of Autodesk’s AutoCAD on eBay. Autodesk claimed that the secondhand sale violated the software license and demanded that eBay remove the items. EBay complied, but also filed a brief on behalf of Vernor, claiming that the sale did not violate U.S. copyright laws, and that the sale of used items is vital to the economy.
 
“Two of the primary effects and public benefits of the first sale doctrine are increased access to, and affordability of, copyrighted works,” eBay said in its brief. “Secondary markets encourage economic efficiency by creating opportunities for buyers and sellers to exchange copies of copyrighted works at mutually satisfactory price points.”
 
GameStop agrees, and has claimed that the sale of used games has actually increased the purchase of new games as well, by as much as 14-percent, thanks to the in-store credit earned with the trade-ins of used games.
 
The ruling will face appeal, but as publisher continue to push to digital downloads that are non-transferrable, and additional fees for physical media to connect online and access all the game’s features, it may end up being something of a moot point.
 
http://www.digitaltr...-game-business/
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Guild Wars 2 Wins Machinima’s Best in Show Award for PAX

We were excited to receive one of Machinima’s two Best in Show Awards for PAX Prime 2010!
 
The good people at Machinima chose Guild Wars 2 over a crowded field of other games for this honor, and we couldn’t be more happy.
 
The Machinima crew appreciated the artistry and sheer fun of the playable Guild Wars 2 demo at PAX. “The art style bleeds beauty, and it plays better than most games on the market today,” they said. “We can’t wait to play it.”
 
Check out Machinima’s Best in Show video for a full recap of the PAX madness, delivered in the inimitable Machinima style.
 
GO GW2 GO!!!!

Guild Wars 2 Wins Best Online Game At Gamescom

http://www.massively...me-at-gamescom/
 
The ArenaNet staffers have been working pretty hard this week -- both at Gamescom and at home in Seattle -- to make the world premiere of Guild Wars 2 gameplay an event to remember.
 
Their hard work paid off this morning when Guild Wars 2 was presented with the award for Best Online Game of Gamescom 2010. "We're honored and delighted to receive this award," says ArenaNet, and credit was given to quite a few others who helped make it happen at Gamescom as well. "We'd like to thank our Gamescom collaborators, Razer, Alienware, nVidia, Flashpoint and Intel, and to send a special thanks to our fans in Cologne and all over the world!"
 
We at Massively join all the fans in congratulating everyone at ArenaNet!

Blizzard Wins $88.5 Million Lawsuit

Blizzard has won a lawsuit against a company by the name of Scapegoating, run by an Alyson Reeves. Alyson and her company were involved in running a private server for World of Warcraft. This is obviously something Blizzard doesn't take lightly and in fact breaks the end-user agreement. Blizzard took them to court for violation of this agreement and for copyright infringement.
 
On August 10, a court in Central California ruled in favor of Blizzard and awarded them the huge sum of $88.5 million dollars. It's unlikely they'll ever receive that amount of money, but it does show Blizzard is serious about the use of private servers.

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