Gold farmer turns WoW gold into real gold, loses it, sues

An Australian woman is suing her insurer over the theft of 74 bars of real gold bullion worth $74,549, which she bought using profits made from gold farming in World of Warcraft.

Adelaide Now reports that Kristina Fincham was a (clearly successful) gold farmer in WoW who sold in-game gold to players in return for substantial profits.  She then decided to convert the profits from the WoW gold into real-world gold bullion.  [EDIT: as Daniel points out in the comments below, gold prices are doing well at the moment, which is a good reason to buy gold atm]

The bullion was allegedly stolen from her home in March 2008.  She is now suing her insurer, AAMI, for failing to reimburse her for that theft.  AAMI’s response appears to be that the theft was staged by Fincham and therefore it has no obligation to pay her.  They said “Ms Fincham was not covered for any loss caused by, or arising from, fraud or fraudulent means used by her or anyone acting on her behalf”.  Trial is set for May 2011.

THOUGHTS:

So this Australian woman farmed WoW gold, turned it into real gold and then allegedly faked its theft?  Good grief.

I’m afraid this case sets no new legal precedents, since the fact she was a WoW gold farmer does not appear to be an issue.  The real issue is what happened to the gold bullion.  Still, the whole case seems so mad, I had to blog about it!

Of course, this would be a lot a more interesting if she had tried to insure the gold that she farmed from WoW, but I suspect we’re some distance from that kind of thing yet…

(NB Adelaide Now reports that this case could be the first case to recount in-game WoW events in a trial.  That’s not right – it’s happened many times before, such as in the WoW Glider case.)

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Image Credit: Activision-Blizzard/Wired

WoW Glider: what actually happened in the courtroom

Last week I wrote an analysis of the Blizzard/WoW Glider case, which got a decent amount of press on the mainstream games sites and led to an awesome debate/flame war/hilarity in the comments to my original post – see here.
One (anonymous) poster wrote up a tongue-in-cheek script for what might have happened in the courtroom, which I liked so much I decided to post it properly below. Enjoy – and if you’re the writer of this piece of genius, let me know for credit….
Blizz: …So in conclusion, please order Michael “Mike” Donnelly to shut down Glider, and also buy us all Yachts. Cuz really, that’s what we were gonna do with it anyway. Either that, or nerf rogues.
Judge: I hate rogues too! B*ggers always gank me when I’m afk taking a leak…
Blizz: Well, we DID nerf stealth by making it MUCH easier to detect. Obviously there were complaints, but PR’s got it covered with the usual run-around.
Judge: Oh sh*ts, I know SOMEONE who’s gonna win a lawsuit if they’d keep a certain class from ever stealthing aga-
Mike: Uh, your honor?
Judge: shut up, Mikey Mike. I’m talking business here. So anyway, this one time I was THIS CLOSE to getting that peacebloom, when I hear that WOOOO, ya know? And then I-
Mike: Your honor, the case?
Judge: FINE, but you BETTER make it a good one, I’m one global away from swinging my Gravel of Justice in favor of Blizz here.
Mike: Thank you, your Honor. Well, ladies and gentlemen of this “supposed” jury, Blizz would like you to believe they made my Glider program illegal. And they make a good case. Hell, I even felt pity myself! But ladies and gentlemen of this “supposed” jury, I have one final piece of evidence for you to consider…
Blizz: (Wait, isn’t this a South Park skit?)
Judge: When did that chartboard get here? Warden, did you catch that?
Warden: No, but there’s a guy in Diremaul who hasn’t logged off in 3 days straight…
Blizz: SEE?! They’re RUINING us!1!
Judge: Really? I mean, it’s just Diremaul. Honestly, have you guys actually tried to run your own instances? They really suck sometimes.
Blizz: Uh… well, we ARE in the process of streamlining the PVE content in order to re-optimize the percentage of numbers such that they increase with better lateral passing.
Judge: …oh.
Phoenix Wright: OBJECTION!
Judge: wat
Phoenix: The excuse offered by Blizz doesn’t make even the most remote logical sense! It’s just words they strung together from what little they remember during the last manager’s meeting in Vegas! Furthermore, “lateral passing” isn’t even an economics term! It’s from football!
Judge: He’s gotcha there, Blizz.
Blizz: Oh yea? Well guess what Phoenix? You just lost.
Phoenix: ?
Blizzard: THE GAME! lol
Judge: lol
Phoenix: !!!
Mike: /sigh
Blizz: Hey! That’s OUR property there!
Mike: You know what, I give up. I had this wookie I was gonna show and everything, but seriously this is just too stupid. (morons, every one of them)
Judge: You heard the man, he sai- wait.
Blizz: ?
Mike: ?
Judge: … did he say he had a wookie to show us?
Mike: (Oh, God…)
God: I LOVE WOOKIES
Mike: /facepalm
Blizz: STOP IT! God, make him stop! He’s stealing our stuffs!
God: MAN WAS ORIGINALLY SUPPOSED TO BE WOOKIES
Judge: Really? What happened?
God: TEQUILA
Judge: Fair point.
Mike: For the love of… you, please just get me out of here. I can’t take this any more.
God: I CANNOT DO THAT HERE
Mike: I know I’m gonna regret this, but… why not, God?
God: I AM OVERBURDENED
Blizz: lol! He’s doing the D2 Barb lines!
Judge: lol! His voice is perfect for it too! Do the A1Q1 quest completion line!
God: THE ROGUES ARE SAFE FOR THE MOMENT
Judge: lol
Blizz: lol
Warden: lol
Phoenix: lol
Mike: Fuck it. I’ll see you all in appeals. /camp
God: ACTUALLY YOU’LL SEE ME IN 1 DAY 17 HOURS 1 MINUTE 0 SECONDS
Judge: Is that… is that when he’s going to die?
God: NO THAT’S WHEN I RENEW MY WOW SUBSCRIPTION
Blizz: Now THERE’S a marketing pitch! “WoW: the only game fit for God!”
God: MY SON PLAYS BEJEWLED
Blizz: we’ll talk to Popcap, make it an addon.
God: AND THE LORD SAW IT AND SAID THAT IT WAS GOOD
…And that’s how a massive lawsuit between a company and some dude brought about the addition of Bejewled into WoW.”
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Thoughts on the WoW Glider appeal

A US appeal court has upheld the illegality of WoW Glider, a high-profile and profitable bot for Blizzard’s World of Warcraft (hat-tip to Nic Suzor).  The case is important both for its implications for bot use generally in MMOs as well as for a number of other legal points for games companies which come out of the case.  The case was also not a clean win for Blizzard, which suffered setbacks in two important parts of the case.

The background

Glider allows players to level up automatically within WoW by playing their avatars for them.  It therefore bypasses the level progression built into WoW.  Glider was built by MDY Industries, which is owned by Michael Donnelly, who sold it to WoW players for a lot of money.  Interesting fact: Donnelly made $3.5m profit off WoW Glider, apparently.

Blizzard did not like Glider, unsurprisingly, and told MDY to stop selling it.  MDY then commenced legal action seeking to justify the legality of Glider.  In 2008, a California court held against MDY, finding both that Glider involved copyright infringement of WoW and that it contravened the Digital Millenium Copyright Act.  That last bit needs a bit of explanation for non-US readers: the DMCA makes it illegal for you to try to circumvent technological protection measures which a software company puts in place to protect its software.  In this case the principal protection measure is The Warden, a program that Blizzard uses to track down bots – and which Glider was designed over time to evade.

Having lost the lawsuit, Donnelly and MDY were therefore made subject to a huge $6.5m fine and ordered to stop selling Glider.  They appealed – and the judgement from the US 9th Circuit appeal court has now arrived.

Key points from the case

  • Blizzard lost its copyright infringement argument.  In a nutshell, it argued that its EULA prohibits bot use and therefore, if a player uses Glider, that is a breach of the EULA and constitutes copyright infringement, for which MDY should be legally responsible as it sells Glider in the first place.  The court held that in fact using a bot does not involve copyright infringement, it just means a breach of contract (i.e. of the EULA).  In other words, using or selling Glider is still illegal because it involves breach of contract, but it’s not quite as illegal as Blizzard made out, i.e. copyright infringement.  This has important practical consequences, because it significantly limited the legal penalties that Blizzard could seek against MDY.  It is also significant legally, because it is the first time that a court has found that using a bot does not involve copyright infringement.
  • However, Blizzard won the DMCA argument.  The court found, again, that because Glider is specifically designed to evade The Warden, it therefore fell foul of the anti-circumvention laws in the DMCA.  Therefore, the court upheld the ban on Glider, even though MDY had ‘won’ the copyright argument.
  • Because Blizzard lost the copyright infringement argument, the court effectively overturned the massive $6.5m fine against Donnelly and MDY.  Which must be a relief for them.  But it doesn’t get them entirely out of the financial wood because…
  • Blizzard had also run a ‘tortious interference with contract’ argument – i.e. it wanted MDY to pay for the damage that Blizzard suffered due to Glider, which appears to have been lost subscriptions.  In the lower court, Blizzard won this argument, but the appeal court now basically has ordered a re-trial.
  • We’ll very likely see this in the courts again, either because of the partial re-trial or because one or both parties attempts to appeal the case up to the US Supreme Court.

Other interesting points:

  • The court affirmed the decision in Vernor v Autodesk earlier this year that games ‘owners’ in fact only license their games, they do not own them (read more here: what Vernor v Autodesk means for games)
  • Blizzard apparently spends “$940,000” a year responding to complaints regarding anti-bot activities (contrast that with the $3.5m profit Donnelly made on Glider sales).  Still, I wonder how much extra Blizzard spends on actually combatting the bots themselves.
  • Interestingly, MDY’s explicit business model was to make it so commercially difficult for Blizzard to continue its anti-bot activities that it would effectively allow Glider to continue. 

So what?

It might sound like a lot of legalese, but really this is a milestone lawsuit in the games industry:

  • It shows yet another weakening of the EULA.  Just because Blizzard said that using a bot was illegal and a breach of copyright, didn’t actually make it so.  Expect more hard looks at the EULA in the future.
  • On the other hand, it shows how important the DMCA is to protecting games in the US.  The equivalent in the UK is the Copyright, Designs and Patents Act 1988 (you can read more about that here in the context of modchips).
  • It also shows that Blizzard really doesn’t like bots.  Its legal costs must be quite substantial by now and, the court having ordered that each side pay its own costs, it can’t recover them from MDY.  That’s a lot of money to spend going after one bot, but Blizzard must have been banking that it will have a deterrent factor on other bots in the future.

Finally, here’s the really interesting question for me: MDY lost not because of Glider itself, but because it circumvented The Warden.  What if there was an MMO with no such protection program in place (and, perhaps, with a less strict EULA too)?  In that case, there is at least an argument I think that bots could be ‘legal’ for that game.  Food for thought, eh?

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Image credit: Juanpol/Flickr, via Wired

Opinion: why PopCap had to say yes to Blizzard

Last month, news emerged that Blizzard will introduce an homage to Popcap’s hit game Plants vs Zombies in the forthcoming World of Warcraft expansion, Cataclysm.   Apparently there will be a Plants v Zombies themed quest chain in the game, including the ability to…well, fight zombies with plants.  It seems that Popcap had collaborated closely with Blizzard on the project.

All well and good.  But this got me thinking: what if hypothetically it had been reported that PopCap had known nothing of Blizzard’s plans and was unhappy with them?  What could Popcap have done then, legally?

My view is this: if Blizzard did it right, then PopCap couldn’t have done much legally – and I’ll explain why in this post. 

But first, a couple of caveats.  One: this is not a complete legal analysis – it is an opinion piece, in which I take you through my views of the key legal issues that would be encountered (though if you do want a careful legal analysis about these kinds of issues, let me know!)  Two: this is not intended to cast any aspersions on Blizzard or PopCap – I’m just using a convenient recent example to discuss the limitations of copyright and trademark law as regards gamesThere is a tendency sometimes to think that, just because someone has copyright and trademark protection in their games, that somehow that makes them invulnerable to copying etc.  Not at all – as I’ll show you.

The basics

These are real basics: a game is really just a bundle of different components : images, audio, video, code, databases etc.  Virtually all those components are intellectual property (i.e. intangible stuff you can own, as opposed to tangible stuff you can own – such as a house) and therefore protected by intellectual property law.  The games components outlined above will usually be protected by a branch of IP law called the law of copyright (more on that below).  Told you it was the real basics…

Separately, your name, the name of the game and the names of some its key features (e.g. its characters) can potentially be protected by trademark law.  For example, Nintendo and Super Mario are trademarked terms (again, more on that below).

In addition, there can be a whole bunch of other intellectual property rights in or around your game – e.g. rights in databases forming part of the game or in its packaging or ‘get up’.  For the purpose of this post, they’re not as relevant so I won’t discuss them.

The copyright bit

As I said much of the game components, like audio and graphics, will be protected by copyright law.  But really that just protects the actual images you’ve drawn or audio you’ve actually recorded.  Copyright law does not give you a monopoly over every other kind of similar image or audio. 

Example: if Alan draws a picture of a fat grey zombie attacking a plant, then he can’t stop Bob entirely separately drawing and selling another image of a fat grey zombie attacking a plant.  This is a critical principle of copyright law: it protects the expression of an idea, not the idea itself.  Two people drawing that picture entirely separately have just drawn on a common idea, so neither of them has the right to stop the other from drawing or exploiting their picture.    Copyright law does this in order to strike a balance between rewarding hard work and protecting intellectual liberty.

Ah, you say, but what about if Alan saw Bob’s picture first?  That’s where it gets tricky.  If Alan can prove that Bob had access to his picture, and can prove that Bob made a replica picture that copies all or (to use some legalese) a “substantial part” of Alan’s picture, then in principle Alan could sue Bob for copyright infringement on the basis that Bob’s inspiration was Alan’s picture, not the abstract idea of a fat grey zombie attacking a plant.

BUT, suing for copyright infringement is not as easy as just looking at the two pictures.  Judges have to look very closely at every aspect of the two copyright works, comparing and contrasting every part of them in order to reach to a decision as to whether there are enough detailed points of similarity to justify a finding of copyright infringement.  This is a very, very hard test to meet.  On top of that, it is often hard to prove that the person who made the alleged replica work actually had access to, and copied, your copyright work.  All lawsuits ultimately involve a degree of chance, but copyright lawsuits often  go beyond that.

What about if there are no obvious technical examples of copying but there is overall a very similar ‘look and feel’ to the two works?  For example, what if there are two GUIs or menus that are not exactly the same but overall give the same or similar effect – could there be copyright infringement there?  Answer: it is going to be very, very hard under UK (and US for that matter) law to prove that someone has copied your game or any other copyright work just based on a similar ‘look and feel’. 

A good example of how hard all this is to prove is the Da Vinci Code case (aka Baigent and Leigh v Random House).  Two authors claimed that Dan Brown had plagiarised their book, The Holy Blood and the Holy Grail, when writing his massive hit The Da Vinci Code.  Brown quite clearly had taken a huge amount of inspiration and plot details from their book, but he was not found liable for copyright infringement because he hadn’t actually copied any text from Baigent’s and Leigh’s book.  There were not enough painstaking points of similarity between the two books, and any general similarities or ‘look and feel’ were not sufficient, to find Brown liable for copyright.

Another example:  Navitaire Inc v easyJet.  Navitaire had developed an airline booking system, which easyJet instructed software engineers to replicate down to the last detail, partly by reverse-engineering it through repeated use of the system.  Navitaire tried to sue for copyright infringement and failed because, even though easyJet it couldn’t show that the relevant copyright works had technically been copied in the word-for-word sense and its ‘look and feel’ argument failed.

That key point again: it’s actually quite hard to prove copyright infringement regarding software, including games.  Ever wonder why (naming no names) some social games look, sound and and have names remarkably similar to each other?  It’s partly because the above shows how hard a lawsuit over any alleged copying would be.


So that’s all very nice and academic, but what does it mean for PopCap and Blizzard?  Here’s my view:
  • Popcap will (unless it has assigned it to someone else) own the copyright in all the visual, audio, video, code etc in Plants vs Zombies
  • But that does not give Popcap a monopoly over the idea of a cartoony tower defence game in which the player builds plants to fight off zombies
  • Nor does it give Popcap a monopoly over the ‘look and feel’ of that kind of game
  • Done correctly, Blizzard could quite properly look at Plant v Zombies and – without actually copying any of the copyright works in that game – make its own version which looked very similar and played very similar
  • In other words, if Blizzard had decided to include a game-mode very like Plants v Zombies in its game, and did it correctly, I think Popcap would have great difficulty in arguing copyright infringement against Blizzard
Of course, there’s a BUT here.  None of this means that you have a licence to rip someone else’s game off without regard to copyright law, firstly because that’s just a bad thing to do but secondly because there’s nothing to stop the copyright owner commencing litigation against you anyway (even if the prospects of success are actually against it).

The trademark bit

So, copyright wouldn’t help (I think).  How about trademark?  Answer: I don’t think so, not if Blizzard was savvy.

Again, another bit of legal 101 first.  Trademarks are intended to give legal protection to the financial value of the name of your company and product, because otherwise it is very tempting to put together a similar product with a similar name and piggyback on someone else’s successful product.  This often comes up in cybersquatting cases, when a shady character sets up a website very similar in name to a popular website and tries to profit from misdirects (for example, Facebook recently successfully went after and shut down Facebok.com).  So, both ‘Popcap’ and ‘Plants v Zombies’ are (or should be) trademarked. 

The basic test for trademark infringement is fairly simple: if you use deliberately in your trade a name which is similar to a name trademarked by someone else and this is likely to cause consumer confusion between your name and the trademarked name, in principle you can be liable for trademark infringement to the trademark owner.

The solution is simple: use a name which won’t cause consumer confusion.  So, if Blizzard was to use a name sufficiently similar to Plants v Zombies to cause consumer confusion (e.g. ‘Zombies v Plants’) then in principle it would be liable for trademark infringement.  But what if Blizzard used a name like “Botanical Mayhem” or something? 

My answer: far less chance of  succesful legal complaint from PopCap, probably.  So Blizzard could take their own type of plant/zombie tower defence game, give it a non-trademark infringing name, and off they go.

Practical points coming out of this little thought experiment:
  • Having copyright and trademark protection for your game is helpful, but it doesn’t necessarily make it invulnerable to being copied/ripped off
  • Copyright protection isn’t going to be a complete shield if someone is determined to exploit your game cleverly
  • Trademarks won’t help you either if they deliberately call the game something else which is sufficiently different so that it wouldn’t cause consumer confusion
  • BUT, litigation isn’t just about winning a lawsuit when you’re absolutely right, it’s also about applying commercial pressure to the other side – so you shouldn’t necessarily be swayed by just these legal arguments
  • And don’t take of this as a licence to go ripping someone else off – obviously, it’s never a good idea to do that

Image credit: PopCap Games/Wikimedia

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Blizzard wins $88m lawsuit against WoW private server owner

Blizzard Entertainment has just won a substantial lawsuit against WoW private server provider Scapegaming, including a crippling award of $88 million in damages. Read on for more on WoW private servers and this case.
What was Scapegaming?
Scapegaming was a WoW private server, which permitted players to play a modified version of WoW that was not under Blizzard’s control and for which players would pay the private server provider rather than WoW. For example, it seems that Scapegaming even featured a (real money) microtransactions system, which obviously WoW does not.  Vanilla WoW is just fine for me for me (my 80 Horde DK is doing ok thanks), but I can imagine that some gamers may find attractive the idea of playing a different, non-sanctioned version of WoW.
Private servers inhabit a pretty murky world (more on them below) and so not much is known about Scapegaming. However, from some investigation it seems clear that Scapegaming is/was one of a number of interconnected WoW private servers, who enjoy apparently quite substantial player bases.  For example, you can have a look at this Youtube video for some rather mysterious allegations about the various figures behind Scapegaming and its rivals.  One thing that does seem clear is that some point Scapegaming was shut down, though whether this was as a result of this lawsuit or other factors is unclear.

So, a bit about private servers
As I said, private servers permit players to play WoW without Blizzard’s supervision and which therefore gives them the ability to manipulate the game to an extent impossible in the official servers. BUT, private servers without the dev’s consent are quite clearly illegal. Why? Because if you reverse-engineer and make available to the public a modified version of someone else’s game without his/her consent, you are committing a range of IP infringements, particularly copyright and trademark infringement. Moreover, both making and using a private server would involve breach of the WoW terms and conditions, entitling Blizzard in principle to shut down WoW game accounts of both the private server providers and their users. In fact, if such servers are provided to the public for profit, then under many jurisdictions this could potentially be a criminal as well as a civil matter for the server providers. Beyond that, private servers cause commercial and creative problems for the dev because they are outside of his revenue stream or his creative control. In other words, they are pretty much always going to be BAD NEWS for developers.
Blizzard itself is certainly alive to the dangers posed by private servers. In around 2002, it took legal action against the owners of Bnetd, a reverse-engineered clone of Battle.net and therefore in effect a private server itself (you can read more on that here) http://en.wikipedia.org/wiki/Bnetd. Beyond that, Blizzard has taken legal action on a number of other occasions when third parties have attempted to introduce changes to WoW without its consent (see for example the WowGlider litigation).

So, at this point, let’s have a quick look at what we know of the Scapegaming case.

The case
In early 2010, Blizzard commenced the legal action in a Californian court directly against Alison Rees, apparently the owner/manager of Scapegaming. The details of Blizzard’s exact complaint were, as usual, set out in a formal Compaint (known as Particulars of Claim in England) – but unfortunately I don’t have access to it (yet). Still, one would expect that it gave set out the IP/contract arguments against Rees.
Then, it seems from the court record, Rees did…nothing. As seems often to be the case in clear IP infringement cases of this kind, Rees ing appears to have chosen not to respond to the lawsuit at all. As a result, it seems that Blizzard became entitled to default judgment (this is a legal procedure in which, if you start a lawsuit and the other side doesn’t respond within the requisite reply period, then you automatically ‘win’ the lawsuit because of the other side’s failure to engage in the process).
At which point the lawsuit seems to take another non-twist, because then Blizzard’s lawyers appear to have done nothing either. The lawsuit history is skimpy on detail and therefore difficult to follow at this point, but it seems that the court took a pretty dim view of this and therefore proposed to dismiss Blizzard’s lawsuit altogether because Blizzard had failed actually to ask for default judgment against Rees. Anyway, after a court hearing on the issues, the court (apparently quite begrudgingly) gave Blizzard a short period in which actually to seek default judgment, which it then did in mid June 2010. This then rolled on for some time until, in early August, the judge ruled that:
Based on Plaintiffs evidentiary submissions, the Court concludes that Plaintiff is entitled to default judgment in the amount of $3,052,339 in disgorged profits, $85,478,600 in statutory damages, and $63,600 in attorneys fees…Plaintiff Blizzard Entertainment, Inc. shall recover $88,594,539.00, and post-judgment interest thereon at the rate provided by law until paid in full, from Defendant Alyson Reeves, d/b/aScapegaming.
Let’s just pick the numbers apart for a moment. Blizzard is to recover $3m in “disgorged profits“, meaning that it was able to convince the court that Rees herself had made over $3m in profits from Scapegaming. That’s a serious amount of dough to earn from a private server. Then we have $85m in “statutory damages”, which is the amount awarded by the court to compensate Blizzard for the estimated loss caused by the IP infringements. Clearly this makes up the bulk of the award and is pretty nuclear all on its own (though NB that the amount of statutory damages awarded are often a target for an appeal later on). Finally, we have $63,600 in legal costs.
So what?
$88m in damages is a pretty crippling blow to bring against an individual and I would guess that, unless Rees is a wealthy individual living in the US (or she manages to win an appeal against that award – seems unlikely), then actually recovering anything like that sum of money may be difficult. However, the sheer size of the damages award certainly should send a clear message to other WoW private server providers (particularly any of those who have moved in on Scapegaming’s territory since the lawsuit began).
Which leads us to the last point for this post. What this case shows most strongly is that Blizzard views private servers as a sufficiently significant problem to merit lawsuits – particularly if other private server providers are earning anything like the $3m that Rees made from Scapegaming. Couple that with the fact that there are clearly other private server providers out there, and it suggests we will see more of this kind of action from Blizzard in the future. Watch this space…

Image credit: Activision-Blizzard/Wikimedia