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Showing posts with label Cheating. Show all posts
Showing posts with label Cheating. Show all posts
Epic Games, Inc. et al v. Mendes et al
United States District Court for the Northern District of California
CAND-3-17-cv-06223, Filed Oct. 27, 2017
 


We recently reported on Epic Games suing individuals for cheating in Fortnite. You can read about those cases here, here, here, here, here, here, and here. Recently the Northern District of California declined to grant a motion for default judgment against one of the defendants, Konstantin Vladimirovich Rak. In its complaint, Epic claimed that a YouTube video Mr. Rak had posted violated its exclusive right of public performance. Epic filed for a default judgment after Mr. Rak failed to respond to any court motions. The Court denied the motion for default judgment on several grounds, one of which was the public performance claim was insufficient. The District Court's denial was noteworthy because, in its opinion, the Court questioned whether posting gameplay footage to YouTube constituted a public performance.

Epic contends that Mr. Rak publicly performed Fortnite when he posted to YouTube a video about how to hack the game. Under 17 USC 101, to publicly perform means to transmit or communicate a performance of a work to a substantial number of people. The same statute defines a performance of an audiovisual work as showing its images in any sequence. Even though video games are classified as audiovisual works, there are not many cases explaining what constitutes a public performance of a video game. Epic cites Valve Corp. v. Sierra Entertainment, Inc., F. Supp. 2d 1091 (W.D. Wash. 2004) to support its claim of public performance. The NDCA did not find this citation helpful because the Valve case was primarily a contract dispute, which briefly discussed what constitutes a public performance of a video game.

The District Court also discussed Allen v. Academic Games League of America, Inc., 89 F.3d 614 (9th Cir. 1996), a case briefly discussed in Valve. Allen involved people playing board games in a tournament. The Ninth Circuit held that "playing" is different than "performing," therefore there was no public performance. However, Allen involved board games, not video games. In Red Baron-Franklin Park, Inc. v. Taito Corp., 888 F.2d 275 (4th Cir. 1989), the Fourth Circuit held a video game arcade publicly performed Double Dragon because the game images were being reproduced. For many, this would seem to indicate that playing a game would be a performance because playing requires the reproduction of game images. Neither Epic nor the NDCA mentioned the Red Baron-Franklin Park case. It could be possible the NDCA agrees with this thinking, but it did reiterate the Allen Court's hesitation on granting copyright owners the power to "control when and where purchasers of games may play the game." Ultimately, the NDCA declined to decide the issue because the motion was only for a default judgment and neither side fully briefed the issue. The Court also warned Epic that the sole citation of Valve was not enough to establish a public performance.

The primary focus of Epic's lawsuits is to prevent hackers from cheating in Fortnite. Epic asked the Court for a default judgment because Mr. Rak did not respond. The goal of the public performance claim was to remove a video by Mr. Rak showing others how to hack Fortnite. The Northern District of California felt that Epic had not done enough to establish a public performance claim, but in the Court's analysis, it questioned what it means to preform a video game. The denial order does not change any current laws, but it does indicate the Court's willingness to address the issue of gamers posting videos on YouTube. The Court's interest in the topic may be the result of how popular "Let's Play" videos and streams have become. It will probably be awhile before there is an actual ruling, but Epic has a chance to amend its complaint, so it will be interesting to see Epic's response to the Court's public performance analysis. We will continue to follow this case and provide updates when available.
On April 23, 2018, Epic Games, Inc. (“Epic”) filed a response to a Motion to Dismiss filed by Lauren Rogers, the mother of a teenaged Fortnite hacker (“C. R.”) facing a copyright infringement and breach of contract lawsuit filed by Epic last year.


Epic’s complaint argues that C.R. infringed its copyrights by injecting unauthorized computer code (that is, cheats) into Fortnite.  C.R. allegedly recorded himself cheating in Fortnite and uploaded those videos to YouTube.  Epic filed a DMCA request to take down those videos, to which CR apparently replied: “i did noting rong this strike is all wrong I was modding in a video game that isn’t against youtubes TOS Why was i striked ‼!.”  According to Epic, C.R. had been banned from Fortnite at least fourteen times, but continued to dodge bans using fake names.  Neither C.R. nor his mother have legal counsel.

The suit is extremely similar to Epic’s other Fortnite lawsuits (discussed here, here, here, herehere, here, and here). 

Ms. Roger’s Motion to Dismiss, actually a letter filed by Ms. Rogers, allegedly admits that C.R. was a cheater but argues that the case should be dismissed because (1) Epic “has no capability of proving [that C.R. performed] any form of modification,” because (2) Epic “illegally” released C.R.’s name, because (3) Epic cannot prove “profit loss” from the cheating or that C.R. profited from his cheating, and (4) because Epic’s contracts (e.g., its terms of service) are invalid because C.R. is a minor.  Epic responded by not only moving to seal certain portions of the trial record, but also by arguing that it was not required to make certain proofs at the pleading stage, and that, in any event, Ms. Roger’s arguments were legally unfounded.

These developments appear to put Epic in a useful, albeit awkward, position.  On one hand, this suit provides a clear warning that even minors may find themselves sued for cheating in Fortnite.  On the other hand, Epic is now pursuing a copyright suit against an unrepresented teen and his mother – definitely an interesting position from a public relations perspective.

On Mar. 9, 2018, Epic Games, Inc. (“Epic”) sued Joseph Sperry (a/k/a “Spoezy”), yet another alleged distributor of cheats for the popular online game Fortnite.



Similar to previous cases (discussed here, herehere, and here), Epic alleges that Spoezy made, used, and sold cheating tools for Fortnite.  Much unlike previous cases, however, to acquire jurisdiction against Spoezy, Epic merely argues that Spoezy purposefully availed himself to the privileges of conducting activities and doing business in North Carolina, rather than using the YouTube DMCA process.  This may be because Spoezy is a resident of New York, unlike previous, non-American defendants.

As a fun side note, Spoezy’s website formerly listed him as a “Cheater[,] Designer[, and] Editor,” though it now lists him as a “Gamer[,] Designer[, and] Editor.” 
On January 8, 2018, Epic Games, Inc. (“Epic”) continued its legal crusade against alleged Fortnite hackers by suing Yash Gosai, a resident of Auckland, New Zealand, for copyright infringement, breach of contract, and conversion.



 In previous cases (which we discussed here, here, and here), Epic sued alleged cheaters in Fortnite, generally targeting those distributing methods of cheating in-game. In this suit, Epic alleges that Gosai distributed an exploit which allowed players to obtained “V-bucks” (in-game currency) for free, stating: “[p]layers who use exploits to avoid paying for items in Fortnite are stealing from Epic.”

Like its previous suits, Epic used the YouTube DMCA notification/counter-notification process to acquire jurisdiction over Gosai.
October 27, 2017, Epic Games, Inc. (“Epic”) sued three foreign individuals–James Mendes, Konstantin Vladimirovich Rak, and Oleksey Olekseevich Stegailo–for copyright infringement, trademark infringement, false designation of origin, breach of contract, and, under California law, unfair competition.  Epic alleges that the defendants were distributing and popularizing cheats for the game Fornite.  This suit may sound familiar: Epic filed similar suits against other alleged Fortnite hackers on October 11 and on October 17.


Epic’s strategy in this case is similar to its strategy in its suit against Philip Josefsson and Artem Yakovenko: file a DMCA complaint against a video demonstrating the hacks, wait for the defendant to file a counter-notification, and use the counter-notification as basis for suing the defendant in a U.S. court.  The timing of Epic’s lawsuits appears to be the result of the timing of the defendants’ counter-notification.
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