Legislation
RX does not have any legal training or qualification. The following are simply quotes and links collated from various referenced sources that are relevant, to varying degrees, to the customer service issues faced in MMOGs today.
The EULA
EULA stands for End User Licence Agreement; when you buy software, you are actually not buying the software but a licence and the means to use it.
The EULA has come under increasing criticism in recent years. The EFF has a pretty comprehensive and well referenced write up, including references to court cases and further reading.
An article on Wikipedia links to cases where the EULA has not been upheld and found to be "invalid, characterizing them as contracts of adhesion, unconscionable, and/or unacceptable pursuant to the U.C.C." (Uniform Commercial Code). The neutrality of this article has been disputed, however.
A more informal version of interpreting the EULA was written by Aaron McKenna. A satirical take on the EULA can be found at the Digital Arts and Culture Conference.
Taken from a Technology & Marketing Law Blog , Mark McKenna, Assistant Professor of Law, comments;
"Most of the arguments against the enforceability of EULAs, particularly when they eviscerate protections under copyright law, are based on the assumption that purchasers don't really assent to the EULA's provisions, and if they do, they don't have much choice but to agree to the terms... The argument now is routinely rejected in just about every context in which it arises. It's the "triumph" of law & economics."
"But this argument against form contracts really has two components. The first is that consumers don't read/understand the terms and have no idea what they're agreeing to. The second is that, even if consumers understand precisely what they're agreeing to, they don't have a choice but to accept those terms."
Copyright, Intellectual Property Laws & Third Party Software.
The approach taken by MMOGs over third party software is currently inconsistent, sometimes vague, and often in apparent contradiction with their own EULAs. For example Funcom's EULA states:
"You may not distribute, rent, lease, loan modify or create derivative works, adapt, translate, perform, display, sublicense or transfer software.You may not copy any of the written materials accompanying the CD-ROM. You may not reverse engineer, disassemble or decompile the Software except to the extent that this restriction is expressly prohibited by applicable law."
Yet their stance on third party tools developed by the community is that although not officially supported or endorsed by Funcom, users may use them at their own risk - although there is no official list of which tools are acceptable and which you may be banned for.
The last line in the excerpt "except to the extent that this restriction is expressly prohibited by applicable law." refers to Copyright and Intellectual Property Laws, and that ambiguous statement covers for where the EULA contravenes those laws. A subject of much debate and conflicting opinion.
Examples of the higher profile cases involving the EULA include Davidson & Associates, Inc (Blizzard) Vs. Internet Gateway, Inc, (BNETD) and Adobe vs Softman. For example court comment from 'Abobe loses Software Licensing Ruling':
"The Court finds that the provisions contained in Adobe's EULA purport to diminish the rights of customers to use the software in ways ordinarily enjoyed by customers under copyright law. Therefore, these restrictions appear to be inconsistent with the balance of rights set forth in intellectual property law. Commentators have noted that the arguments for enforcing this balance are particularly persuasive in the context of shrinkwrap licenses because the balance of rights in intellectual property law is already tilted heavily in favour of the intellectual property owner."
In the case of Davidson & Associates, Inc (Blizzard) Vs. Internet Gateway, Inc, (BNETD), the Court ruled in favour of Blizzard and the EULA however, and prompted a significant amount of controversy.
In support of the defendants a number of Scholars and teachers of Intellectual Property Law submitted the Amicus Brief. Taken from the summary:
"The District Court below erroneously endorsed plaintiffs' leveraging of copyrights in proprietary game software to unjustifiably restrict entry by third parties into an ancillary or related market: the provision of on-line platforms for interactive multi-player gaming. It concluded that by devising the "bnetd" software utility and offering it to on-line gamers on a voluntary non-profit basis, as an optional alternative to the plaintiffs' Battle.net service, the defendants had infringed intellectual property rights and breached contractual obligations."
"In particular, the District Court found that by using reverse engineering techniques that involved unauthorized "intermediate reproduction" of the proprietary game and server software code, the developers of the bnetd software had violated End User License Agreements (EULAs) distributed with plaintiffs' CD-ROMs, as well as Terms of Use (TOUs) that appear on their websites. Such a conclusion, however, runs contrary to the doctrine and policy of settled law regarding the permissibility of reverse engineering in connection with legitimate software development."
".intellectual property law should serve to promote rather than to frustrate socially useful innovation, and second, that intellectual property owners should not be permitted to misuse their limited legal authority by extending it beyond its actual area of application - the market for the work in question."
"Nevertheless, the District Court concluded that even where reverse engineering of software may qualify as "fair use" under copyright, it can be prohibited by the terms of "shrink-wrap" or "click-on" licenses. This Court should reject that conclusion - both because the enforcement of such contract terms is preempted by copyright and because such contracts constitute misuse of copyright."
On the other side of the coin, at Cyberlaw Central Kevin A. Thompson comments:
"Davidson had every right to stop the Defendants from creating an alternate forum for playing the game. I also disagree with the criticism of EULA's. So many software programs come with EULA's these days that you have to agree to in order to use the software. Prohibiting reverse engineering of a commercial gaming software program isn't one of the seven deadly sins in my book. I think it's the right outcome, we'll see if the reasoning used here survives scrutiny in other cases. I doubt this one is worthy of Supreme Court review."
There will likely be far more debate and controversial rulings before this particular aspect of the EULA is settled.
Consumer Rights & MMOGs
Consumer Laws vary between Country and State, although with increasing globalisation, consumer bodies are increasingly working together to develop and agree generic consumer policy recommendations.
There are parts of the MMOG industry that could be debated as contravening Marketing and Civil Laws, for example, section 3 of the Norwegian Marketing Control Act states:
"It is prohibited in the conduct of business to use any representation which is likely to influence the demand for or supply of goods, services or other performances, when the representation does not provide adequate or sufficient guidance or introduces irrelevant matter and must therefore be considered unfair.
The same shall apply to any other procedure that may have such an influence on demand or supply if it exploits the lack of experience or knowledge of consumers and must therefore be considered unfair."
At what point do bugs, undelivered content, or misleading advertising of MMOGs (& expansions) break such Law? Could the same be extended to keeping customers in ignorance or misleading them over internal processes that may affect their access to the technology they have paid for (and is non-refundable)?
How do some aspects of a EULA fit in with the UK's Unfair Terms in Consumer Contracts Regulations (UTCCRs):
"A term is unfair if, contrary to the requirement of good faith, it causes a significant imbalance in the parties' rights and obligations under the contract, to the detriment of consumers.
'Good faith' means that traders must deal fairly and openly with you.
Although standard terms may be drafted to protect commercial needs, they must also take account of your interests and rights by going no further than is necessary to protect those legitimate commercial interests.
According to the UTCCRs, a standard term must be expressed in plain and intelligible language. A term is open to challenge if it could put you at a disadvantage because you are not clear about its meaning - even if its meaning could be worked out by a lawyer. If there is doubt as to what a term means, the meaning most favourable to the consumer will apply."
Clauses such as this are typical in EULAs, and translate to an agreement not to sue the business for any reason, effectively waiving all of your rights:
"Your use of the Software, your access to your Account and your playing the Game constitutes your agreement to defend, indemnify and hold harmless Funcom and its affiliated companies, employees, contractors, officers and directors from any claim or demand, including reasonable attorneys' fees arising of your use or misuse of the Software, your access to your Account and your playing the Game, including a third party's use or misuse of your password."
One party waiving all rights in the others' favour could perhaps be considered an 'imbalance in the parties' rights'.
Virtual Identity & Property
A very common justification that has been used for trading virtual currency and property against the EULA, is that it is not the currency or item itself being sold but the time invested in accruing the currency, item, or character. Sometimes even the reputation of the character is used as a selling point. In 2002 Blacksnow Interactive, a MMOG merchant (touted as the first 'virtual sweatshop' by some), attempted to sue Mythic Entertainment, the creators of DAOC for restricting the sale of items and characters in it's EULA.
"What it comes down to is, does a MMORPG player have rights to his time, or does Mythic own that player's time? It is unfair of Mythic to stop those who wish to sell their items, currency or even their own accounts, which were created with their own time. Mythic, in my opinion, and hopefully the court's, does not have the copyright ownership to regulate what a player does with his or her own time or to determine how much that time is worth on the free market." - Blacksnow Director of Sales, Lee Cadwell.
They also threatened Funcom with legal action. Both cases fizzled, but raised issues around EULA enforceability and legitimacy. To the knowledge of RX, this issue has not yet been brought to resolution in a court.
The trading of online assets for real currency has blurred the line between real and virtual economics and law. In Q4 2006 online currency attracted interest from Taxation bodies, as reported by Fox news, The Age and Gamespot among others.
There have also been a handful of cases where Civil or Consumer Laws have been brought to bear on virtual identities and property.
For example, Mar 2006 saw the first successful libel action in the UK against someone in a chat room.
In Nov 2006 a player successfully sued a MMOG company (Shanda: Legends of Mir III) winning "compensation of RMB 45,000 (US$ 5,625) for the depreciation of his game equipment during the suspension period, the damage to his character's reputation in the game, and his travel expenses"
One thing is certain, the line between ownership of a virtual identity and the time invested in that identity, is still ill-defined and has a way to go to catch up with this burgeoning industry.