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Jagex Games Studio WINS COURT CASE AGAINST RUNESCAPE BOT DEVELOPERS GAINING SUBSTANTIAL DAMAGES

Cambridge, UK –1st February, 2012 - Jagex Games Studio, a leading independent developer and publisher of online games, finalized its victory in a two year legal battle with the developers of iBot, a RuneScape specific macroing/botting software platform; which had harmed RuneScape.com for a number of years until the Bot Nuke in October 2011.

The judgment entered February 1, 2012, against brothers Mark and Eric Snellman, who are trading under Impulse Software, resulted in them being ordered to pay Jagex damages in excess of six figures. In addition, an injunction was placed upon them to prevent them from ever developing botting software for any Jagex product, helping other people develop or use botting software or discussing Jagex, the lawsuit or RuneScape.

Jagex has been engaged in a number of legal battles over the past couple of years to tackle the botting and gold farming within RuneScape and the adverse impact it has on the game and valued community. The result announced yesterday is a significant win for a games company and could set a precedent for future legal cases regarding this kind of abuse.

Mark Gerhard, CEO & CTO of Jagex, stated: “We began the legal action against the Snellmans over two years ago as a part of our ongoing commitment to ridding RuneScape of bots and gold farmers. Faced with this significant challenge we have continued to demonstrate that we will never shy away from difficult battles, we don’t compromise on taking the right course of action and, regardless of the time, money or effort involved we always do what it takes in order to protect our community”.

This announcement follows the news that the recent in-game action to combat botting has been a huge success. Jagex developed a suite of code obfuscation tools, code named the ‘Cluster Flutter’ and coupled with various other countermeasures both technical and in-game, have, since their release in October 2011, rendered 98% of all in-game bots obsolete. Neither iBOT nor any other bots developers have been able to publish working updates to overcome the “Bot Nuke” despite their continued efforts to do so.

Mark Gerhard added “Technically speaking this is a veritable arms race, there is no permanent triumph in cyber security. The only serious long term strategy is to ensure you continuously innovate well ahead of the challenges faced today; that way you should hopefully always be a few steps ahead in the future. I’m happy to say 1337 Ninja’s are already well underway with “Optimus” Jagex’s next generation obfuscation and encryption framework which will be released shortly.”

Speaking about the Bot Nuke , Daniel Clough, VP of RuneScape said: “Jagex have been working on anti-botting and gold farming measure for a very long time and have continually been ensuring that the games integrity and community are protected. This action has been central to both our longevity and success over the years and I’m sure it will put us in very good stead for the years to come. We launched ‘Bot Nuke Day’ in October and instantly wiped out 98% of all the bots in the game. We are delighted with the results of our efforts so far and are pleased to hear the positive comments from our players.

The economy has settled down over the past few months, the game has truly been flourishing since then and as a result the team and I are all looking forward to a great 2012 for RuneScape.”
As a condition of this case the Snellmans have been ordered to give up all websites, domains, source code and customer details to Jagex along with all the details of all those individuals who have developed scripts for iBOT and sold or re-sold those scripts.

Gerhard concluded with: “The result of this case against the Snellmans should serve as a serious deterrent for anyone who continues to be involved in developing botting software or scripts or even maintaining or supporting those involved.”

Jagex was represented by Tim Meece, Ross Dannenberg, Chris Roth, V. Bryan Medlock, and Erin Bryan of the intellectual property law firm Banner & Witcoff, Ltd.

About Jagex Games Studio

Jagex Games Studio is a multi-award winning games developer based in Cambridge, England. Jagex specialises in the development of high quality browser-based games and is the largest independent games developer and publisher in the UK.

Jagex has a long-standing reputation for creating the world's best online games and for developing hugely popular, high quality, accessible, free-to-play games and for providing an unbeatable community experience for millions of players around the world. Jagex has developed and self-published over 40 online titles, including the world's most popular free multiplayer online game, RuneScape.com

In addition to RuneScape, Jagex self-publishes games on its games portal Jagex.com, and has released a series of successful iPhone games including BounceDown, StarCannon, and Miner Disturbance. Jagex also acts as a third-party publisher for likeminded developers, publishing titles such as the Herotopia, the online virtual world for children, the real-time strategy game War of Legends, and the iPhone title Undercroft.
WIRED has an interesting article regarding Microsoft's inclusion of badges as rewards for developers in Visual Studio. As developers write code, an Achievements extension grants badges in much the same way a video game does. Badges are associated with certain accomplishments — both good and bad — and many of the good badges also come with points. The hope is that these virtual rewards will spark competition, and that competition will improve the quality of the work. Read more at WIRED.com.
Sorry we've been silent for a while. Our "real jobs" has been keeping us away. In any event, an occurrence on Christmas Day reminded me of the progress that video games have made in the last 30 years. We can now injure ourselves running and jumping while playing video games just like we can running and jumping outside. I was playing Kinect Sports with my niece and my brother says to me "careful, I pulled a calf the first time I played." My brother is older than me, so surely I will be fine, I though. Well as I landed from jumping over the last hurdle... pop! I TORE my calf muscle. Yes... ouch! Lesson learned. But this did remind me that video games have become much more sophisticated, developed, and viable for use in teaching real-life situations. I love my job.
Microsoft has acquired Twisted Pixel Studios, according to a recent Microsoft press release:
As a step in continuing to deliver Microsoft Studios’ innovative game and entertainment offerings, Microsoft has announced the acquisition of Austin, Texas-based game developer Twisted Pixel, the creative minds behind Xbox LIVE Arcade titles such as “Splosion Man” and the recent Kinect for Xbox 360 title, “The Gunstringer.”
Twisted Pixel joins other globally-recognized game creators such as Lionhead Studios and Rare Ltd who have also been acquired by Microsoft.
VOTE FOR PATENTARCADE.COM AS ONE OF THE BEST BLOGS

Attention Patent Arcadians!!! (I just made that up)

I am writing to request your vote for PatentArcade.com as one of the blogs to be included in the ABA journal's annual list of the 100 best legal blogs. The contest is referred to as Blawg 100 Amici.

As many of you know, I created this blog about 5 or 6 years ago to discuss the cross section of intellectual property law and video games. The Blog/Blawg offers news and updates regarding video game IP law, cases, and patents. Our index of lawsuits is a primary resource for law students, journalists, and attorneys alike. Our index of video game patents continues to develop, with more patents being added routinely.

Please vote for the blog (blawg) and spread the word about the contest (and the blog) to folks in the legal industry. There is a form that has three questions (name, e-mail, and why you are a fan) to be completed. The forms are due (on-line) by September 9. The form is at this site http://www.abajournal.com/blawgs/blawg100_submit/ (also linked throughout this post).
The criteria include that you believe other lawyers should know about it, the author is recognizable as a lawyer in the vast majority of his posts, the blog is written with an audience of lawyers or law students in mind, and the blog does not promote the author's products and services. Additional information is provided on the ABA Journal's website.

Hidden Image Technology Solutions v. Thomas L. Barnhart
U.S. District Court, Northern District of Georgia
Case No. 11-cv-02415, Filed July 22, 2011

Hidden Image Technology Solutions, a Georgia company, has sued Thomas Barnhart asserting that he falsely promotes himself as the sole inventor of several patents, and has profited from this false promotion. The lawsuit seeks to remove Barnhart as an inventor of those patents, and to instate his co-inventor, Joel Brooks, as the sole inventor of the patents. The patents in question are:

6,296,900: “Method of making hidden image game piece.” Granted 10/2/2001.
5,984,367: “Hidden image game piece.” Granted 11/16/1999.
7,747,472: “Hidden image game piece.” Granted 6/29/2010.
6,629,888: “Hidden image game piece.” Granted 10/7/2003.

These are physical game patents, consisting of printed pieces, that when held against pre-programmed colors on a television or computer screen, reveal hidden messages. The first use of this patent by Brooks, in the early 1990s, was for a hidden printed message distributed in newspapers, called the “Red Reveal Game Piece.” When held against a red part of the screen set to appear during a Dallas Cowboys football game, the game piece would reveal a hidden message or advertisement. The idea garnered interest from television outlets like MSNBC, and Brooks also worked to adjust the invention to the growing opportunity of the internet. Brooks developed a WebDecoder® based on the patents above, and shared his idea for marketing it with Barnhart. According to Hidden Image’s complaint, Barnhart cajoled himself into the position of co-inventor of these patents by convincing Brooks that this was necessary for Brooks’ own “protection.” In reality, according to Hidden Image, Barnhart was not an inventor of the patents, and Brooks was the true sole inventor.

The complaint alleges that Barnhart not only forced his way into the co-inventor position on three of the patents, but without Brooks’ knowing, he had himself listed as the sole inventor of the ‘888 patent. Barnhart also attempted to license these patents giving Brooks only 10% of the royalties. Brooks in 2003 licensed his rights, title and interest in these patents to a subsidiary of Hidden Images. Hidden Images now seeks to have Barnhart’s name stricken from the records of the USPTO, and to instate Brooks as the sole inventor of all four patents. Hidden Images also seeks an injunction barring Barnhart from using the patents, and to recover damages, profits, and attorney’s fees.

Because this is a physical game patent, we won’t follow this one further. You can learn more about the case filings at PriorSmart.


Ross A. Dannenberg publishes new book: “The American Bar Association’s Legal Guide to Video Game Production

The American Bar Association’s Legal Guide to Video Game Development is published by the American Bar Association (ABA), and is the authoritative handbook on developing a video game. Included in each chapter are the relevant forms, agreements, and contracts for that phase of production, as well as tons of helpful tips on negotiation and decoding legalese. Written by experienced lawyers who work closely with software and video game developer clients, this is the inside guide to the process of taking an idea and creating a product, from beginning to end. You'll learn the in's and out's of the legal aspects of video game production including:
  • Patents, Copyright and Trademarks
  • Business and Finance Issues
  • Risk and Insurance
  • Intellectual Property Agreements
  • The Children's Online Privacy Protection Act
  • Publishing Your Game
  • Licensing and Open Source Material
  • EULAs and Terms of Use
It's a practical, prescriptive book perfect for entertainment and intellectual property lawyers; video game developers; art, design, trade, and law schools; or just burgeoning artists with an idea.

About the author/editor: Ross A. Dannenberg is a shareholder in the Washington, DC office of Banner & Witcoff Ltd., and handles a wide-range of intellectual property issues, with experience in Internet, e-commerce, telecommunications, computer software and video game-related issues. With a background in computer science, Mr. Dannenberg has prepared and prosecuted hundreds of patent applications in a variety of technical fields, including mobile and traditional telecommunications, computer software, video games, and Internet and business method inventions. He has substantial experience with intellectual property protection of video games, including patent and copyright protection, copyright clearance and licensing, and has experience with entertainment, copyright, trademark and domain name related matters.

Mr. Dannenberg is an adjunct professor of copyright law at George Mason University School of Law. Mr. Dannenberg is also the Editor-in-Chief of the Patent Arcade website, a legal blog discussing intellectual property protection of video games.

Please click here for information on ordering The American Bar Association's Legal Guide to Video Game Development.

While not a video game case per se, this will likely affect patents claiming video games because the Federal Circuit (a US appeals court for patent matters, among other things) strikes down a computer readable medium claim (aka, Beauregard claim) as non-eligible subject matter for a patent. They don't strike down ALL Beauregard claims, but they do draw a line in the sand where you simply put a computer-readable medium preamble on an otherwise non-technological method. Relevant text appears below. Claim 3 was a method claim that the court first addressed and found unpatentable under section 101. Claim 2 was the beauregard claim:

Regardless of what statutory category (“process, machine, manufacture, or composition of matter,” 35 U.S.C. § 101) a claim’s language is crafted to literally invoke, we look to the underlying invention for patent-eligibility purposes. Here, it is clear that the invention underlying both claims 2 and 3 is a method for detecting credit card fraud, not a manufacture for storing computer-readable information. This case is thus similar to In re Abele, 684 F.2d 902 (CCPA 1982). In Abele, claim 5 of the patent at issue recited “[a] method of displaying data” comprising the steps of “calculating the difference” between two numbers and “displaying the value.” Id. at 908. The court concluded that claim 5 was not directed to patent eligible subject matter because it claimed an abstract idea. Id. However, claim 7 was argued to be different because it recited an “[a]pparatus for displaying data” comprising “means for calculating the differences” between two numbers and “means for displaying the value.” Id. at 909 (emphases added). Though claim 7 literally invoked an “[a]pparatus,” the court treated it as a method claim for the purpose of its § 101 analysis. Due to its “broad” and “functionally-defined” nature, the court found that treating claim 7 as an apparatus claim would “exalt form over substance since the claim is really to the method or series of functions itself.” Id. (citation omitted). Accordingly, the court placed “the burden . . . on the applicant to demonstrate that the claims [were] truly drawn to [a] specific apparatus distinct from other apparatus[es] capable of performing the identical functions.” Id. (citation omitted).
In the present case, CyberSource has not met its burden to demonstrate that claim 2 is “truly drawn to a specific” computer readable medium, rather than to the underlying method of credit card fraud detection. To be sure, after Abele, we have held that, as a general matter, programming a general purpose computer to perform an algorithm “creates a new machine, because a general purpose computer in effect becomes a special purpose computer once it is programmed to perform particular functions pursuant to instructions from program software.” In re Alappat, 33 F.3d 1526, 1545 (Fed. Cir. 1994). But we have never suggested that simply reciting the use of a computer to execute an algorithm that can be performed entirely in the human mind falls within the Alappat rule. Thus, despite its Beauregard claim format, under Abele, we treat claim 2 as a process claim for patent-eligibility purposes.

The court went on to analyze claim 2 as a process and held it unpatentable under 101. Among other useful info, the court stated:
  • The mere manipulation or reorganization of data, however, does not satisfy the transformation prong.
  • As we stated in Bilski, to impart patent eligibility to an otherwise unpatentable process under the theory that the process is linked to a machine, the use of the machine “must impose meaningful limits on the claim’s scope.” In other words, the machine “must play a significant part in permitting the claimed method to be performed.”
  • Abele made clear that the basic character of a process claim drawn to an abstract idea is not changed by claiming only its performance by computers, or by claiming the process embodied in program instructions on a computer readable medium. Thus, merely claiming a software implementation of a purely mental process that could otherwise be performed without the use of a computer does not satisfy the machine prong of the machine-or-transformation test.
The court went on to contrast this case to SiRF Tech. and Research Corp. Tech. v. Microsoft, where in each case the claims at issue could not have been performed wholly within a human mind, and were upheld as patent eligible under 101. There is much to learn here.

Here is the full opinion: http://www.cafc.uscourts.gov/images/stories/opinions-orders/09-1358.pdf. I'm sure many people will be commenting on this case.

In a previous post we reported on the internet buzz surrounding the issuance to Facebook of U.S. Patent No. 7,669,123, entitled “Dynamically Providing a News Feed About a User of a Social Network.” Many users were outraged that the patent system would allow businesses to register such patents. You can read our analysis here.

Facebook has certainly continued to legally enforce its patents, and last November it filed suit against Phoenix Media, a Boston-based alternative newspaper publisher, for infringing one of its database search patents. The patent-in-suit is U.S. Patent Number 6,199,157, which covers a system for configuring an item such as a machine that can have a multitude of optional components. Facebook claimed that Phoenix Media infringed the patent by operating websites that allowed users to search for information by filtering data according to multiple criteria.

Last Friday, July 29th, 2011, Phoenix Media asked a Massachusetts federal court for summary judgment in the case, arguing that the '157 patent is invalid. According to Phoenix, the technology claimed by the patent was widely in use when the patent application was filed in 1998. According to Phoenix's motion, "...at least in the area of database searching (the field at issue in this case), such methods are anything but novel. The prior art shows they were known and in use long before the application." Phoenix cites several articles that described similar systems before the application for the Facebook patent was filed, including one from 1996 discussing features of then-popular search engines AltaVista and Lycos Inc.

Since this isn't strictly a video game patent case, we won't follow it further, but if you'd like to learn more, visit Law360.
Lodsys LLC. V. Combay Inc. et al.

United States District Court, Eastern District of Texas

Case No. 11-cv-00272, Filed May 31, 2011

Previously, we reported on the ongoing battle between Apple and Lodsys over licensing to app developers. Lodsys claims that its agreement with Apple did not give third-party developers free rein to use the patented technology while Apple insists that the license does cover its app developers. Now, Lodsys has added its most prominent (app developer) defendants yet to the complaint: Rovio Mobile Ltd. (the maker of “Angry Birds”); Electronic Arts, Square Enix, Atari, and Take-Two Interactive.

The lawsuit accuses the mobile app developers of violating two patents that cover a technology which allows users to make in-game purchases through the application. They are U.S. Patent Numbers 7,620,565, titled “Customer-Based Product Design Module,” and 7,222,078, titled "Methods and Systems for Gathering Information from Units of a Commodity across a Network". The '565 patent was issued in November 2009, and the '078 patent was issued in May 2007.

The original lawsuit followed some back and forth between Lodsys and Apple over licensing permissions. There had been private negotiations on the matter, but Lodsys took the issue to court following a letter from Apple apparently asking Lodsys to ease off app developers for the iPhone. It is worth noting that the present suit includes not only developers for the iPhone, but also app developers for Android. "Angry Birds," and another game cited in the complaint, "Labyrinth", both run on the iPhone as well as Android platforms. There has been no word yet from Google on the matter. Lodsys is seeking injunctions, treble damages, and attorney’s fees as relief. For more coverage of this case, see Law 360.
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