Slashdot Mirror


More on Microsoft vs. Lik Sang

Levendis47 writes "CNET's News.com is running an article on Microsoft's legal manuevers which have successfully shut down the Lik Sang ecomm store where they've been selling various game system mod chips including the OpenXBox Mod Chip. This leads me to two questions (and I'll admit my ignorance, faux or not, in order to get discussion on this topic): 1) When a customer purchases an XBox (or any game system for that matter) are you intrinsically "signing" an end-user agreement in the purchase that makes modding the device illegal? 2) Could a non-profit org setup an effort to have mod chips produced and "distributed" at the cost of production w/o legal repurcussions? (i.e. would not making a profit on XBox's hardware mods protect you from their wrath?) 3) I understand the whole DRM aspect of mod'ing for playing copied games, BUT, what about legit gray-hacks like the Mandrake Linux XBox project and such? It would seem to me that in the long haul, Microsoft would support such efforts because they could sell more devices (and potentially more software if they licensed an opensource validation library)... "

26 of 550 comments (clear)

  1. Nice... by koh · · Score: 5, Insightful

    Another proof, if any more was needed, that US laws don't apply to US citizens only...

    I wonder how much of a precendent that can make for the Kazaa case, among others...

    --
    Karma cannot be described by words alone.
    1. Re:Nice... by Morgahastu · · Score: 5, Insightful

      There was never any doubt. America laws are applicable to you if you sell/ship to america. If you have a building there, you are under their jurisdiction. There are no clear cut rules for internation e-commerce but thats the way its been working so far. You deal with americans, you deal with their laws.

    2. Re:Nice... by Anonymous Coward · · Score: 5, Insightful

      so, we are better off not dealing with them then.

    3. Re:Nice... by Ravenn · · Score: 5, Insightful

      You deal with americans, you deal with their laws.

      Except: The US laws do not apply where it could inconvenience any US company.

      Proof: The recent lawsuit against the tabacco companies, where the payout was in the millions. An Australian is going to try the same thing, but US law only allows a maximum of 30% of a US-based payout to be given to overseas claims. However, a US company (or person) can claim damaged, etc from another country that could total that county's yearly exports.

      And yet, this is considered fair. Just because the US has nuclear weapons, and other politicians are weak-willed brown-nosers.

      --
      Of all the things you can accomplish by screwing up your face and swearing into a dark room, sleep is not one of them.
  2. If an XBox were a car by MrRee · · Score: 5, Insightful

    Seems to me hardware vendors don't have a leg to stand on concerning aftermarket modifications to their hardware. People have been moding cars for years with aftermarket parts.

    Dangit, if I buy the hardware and want to modify it, I payed for it--it's mine--why shouldn't I be able to? Void the warranty, yes. But don't tell me I'm doing something legally wrong.

  3. profit made on game titles by rjforster · · Score: 5, Insightful

    Selling the hardware is normally a loss-leader with the idea being to get you to buy loads of high profit margin games, which even out the overall deal in their favour.
    As soon as you only buy the hardware (because with a mod-chip it makes a cheap general purpose computer) then the finances get all screwed.

    1. Re:profit made on game titles by bludstone · · Score: 5, Insightful

      Selling the hardware is NOT normally a loss-leader. This is a general misconception about the gaming industry. There have been 2 consoles sold at a loss; Dreamcast and X-Box. The gamecube and the ps2 both make profits for nintendo and sony respectively. Sure, its not much.. may even be cents.. but please do not continue to push this rumor.

      Just to back your argument up a bit. The basis of profit for sony, nintendo, and MS are, indeed, selling high profit margin games. But MS is the only one currently losing money on a console.... and they are losing money hand-over-fist.

      --

      no .sig
    2. Re:profit made on game titles by XaXXon · · Score: 5, Insightful

      Yet another mis-use of government to keep a bad business model alive..

      Seems like MS is still stuck in the "New Economy".. If you don't want to lose money, don't sell something for less than it costs you. Plain and simple math.

    3. Re:profit made on game titles by Scarblac · · Score: 5, Insightful

      As soon as you only buy the hardware then the finances get all screwed.

      Yes, but that's not your problem, is it? That's a "feature" of their business model. If people decide to use their property in some other way, or just decide to buy no games, then it may cost MS money - but that doesn't make it illegal! You never went into any agreement with them to let them keep making profit off you, you just bought some box cheaply.

      On the other hand, these mod chips apparently contain a modified version of the Xbox's RAM, and therefore they're quite simply illegal, if they really do.

      --
      I believe posters are recognized by their sig. So I made one.
  4. "Microsoft could sell more boxen.." by mumblestheclown · · Score: 5, Insightful
    I am always underwhelmed by arguments that " {grey activity} should be legal because it would help {microsoft/mpaa/riaa} sell more {software/movies/music}."

    The fact of the matter is that if under current law those companies are the rightsholders, it is up to them to decide whether or not to undertake some alternate distribution method. Just because under some economic analysis such grey activities may help them sell more units does not make those activities any more legal or morally acceptable.

    If you honestly a) hate RIAA and b) think that Napster et al increased music sales, then you would NOT have used napster, right?

    1. Re:"Microsoft could sell more boxen.." by CashCarSTAR · · Score: 5, Insightful

      Overall, P2P increases music sales. However, what has happened is that sales of top-40 profitmaking stuff have been replaced with sales of either indie artists or older material. (Often used). That's what the RIAA doesn't like. It's not about piracy, it's about market share.

    2. Re:"Microsoft could sell more boxen.." by ReconRich · · Score: 5, Insightful

      The fact of the matter is that if under current law those companies are the rightsholders

      Hold on there cowboy. Modding your X-box can't be illegal because you own it. It is not, by anybody's definition licensed. I bought it. It is not software. It may contain software, which is presumably licensed, but that license cannot disseize me of property rights. The Mod itself could be illegal, that is, and illegal copying of copyrighted software, and that seems to be what is happening here. If I buy a mod chip from someone, they are responsible for the legality of what they are selling, not me, so long as there is a quid pro quo. Which seems to be where Lik Sang screwed up.

      grey activities may help them sell more units does not make those activities any more legal or morally acceptable

      Your statement here makes the assumption that we all believe that sellers have the intrinsic right to dictate to buyers what they can and cannot do with the product which they have bought. This is so utterly ludicrous that I have to believe that you are astroturfing for the MPAA. I suggest you review the legal concept of quid pro quo. I'll give you a hint, its latin, and it means "this for that". And when you sell something You Give Up Ownership This is the fundamental principle of Capitalism. Get used to it.

      -- Rich

      --
      Free your mind and your Ass will follow -- George Clinton
  5. Freedom and Disclosure by nuggz · · Score: 5, Insightful

    If it is your property you should be able to do whatever you want with it.
    If as a condition of sale you agree to certain things, then you must conform to them, you are free to buy or not buy. But I should clearly and explicitly tell you BEFORE you purchase the product.
    People should be free to have almost any contract they wish, I don't think the government should restrict my freedom by saying I can't enter into a fair and equitable agreement.

    Undisclosed onerous conditions should not be be valid.

  6. Isn't the majority of this legal? by Epeeist · · Score: 4, Insightful

    > The chips typically allow a game machine to play legally and illegally copied discs, run unauthorized software, and play game discs intended for other geographic regions.

    I buy an Xbox (not that I would), it is therefore mine. I chip it, which presumably voids the warranty, but this is still legal because I own it.

    If I use it to play pirated games then I am breaking the law because the vendor has copyright on the game, not because I have done anything illegal with the console.

    If I purchased the console then it is up to me to decide what software I run on it. The OEM has no right to tell me what is and is not authorised software.

    If I use it to play games from other regions then this should be fine, because the vendor of the game is applying a restraint on trade.

    This article seems, like many others, to be offering a report that has little to do with logic or the law but has everything to do with partiality.

  7. Re:What haven't we been told? by bludstone · · Score: 5, Insightful

    either that or Lik-Sang will say "yeah, okay." and shut down shop.

    Two weeks later a Sik-Lang site is up and doing the exact same thing.

    It'll be like whack-a-mole :)

    --

    no .sig
  8. Profit, on the hardware, think not by den_erpel · · Score: 5, Insightful

    It would seem to me that in the long haul, Microsoft would support such efforts because they could sell more devices (and potentially more software if they licensed an opensource validation library)... "

    As far as I know about these things, the hardware is sold at cost or with a loss, and the manufacturers want to get profit out of the games.

    Modding it would not increase their profit, instead, as you are running software where M$ (or Nintendo or Sony) they are not paid for.

    On the other hand, Sony does support Linux on their PS/2 and develops for it. I guess that they think (rightfully) that if you buy a PS/2, you will most likely buy games for it too. Having Linux (and network on it) might just be the extra push the customer needs.

    --
    Genius doesn't work on an assembly line basis. You can't simply say, "Today I will be brilliant."
  9. Licenses by sql*kitten · · Score: 5, Insightful

    1) When a customer purchases an XBox (or any game system for that matter) are you intrinsically "signing" an end-user agreement in the purchase that makes modding the device illegal

    Well, if you aren't, then the GPL isn't binding either, since you aren't intrinsically "signing" anything when you use GPL'd code. Why is it that the EULA is wrong, but the GPL, BSD license etc are OK? After all, in the Unix community (or the traditional Unix community, at any rate) programmers and users were largely indistinguishable, so using source code is analogous to using a consumer application.

    Be careful what you wish for: you might get it.

    1. Re:Licenses by Wdomburg · · Score: 5, Insightful

      >Well, if you aren't, then the GPL isn't binding
      >either, since you aren't intrinsically "signing"
      >anything when you use GPL'd code.

      As has been pointed out numerous times before, there is nothing preventing you from *using* GPL code without agreeing to the GPL.

      The license is for *distribution* not use. As you have no right to distribute copyrighted works otherwise, you are bound to seek licensing before doing so, in which case the authors provide the GPL.

      Matt

  10. So sue me. by TechnoLust · · Score: 5, Insightful

    Good point, but really it doesn't matter. You can sue me because you don't like the shirt I'm wearing, or I can sue you because I don't like your pants. It doesn't matter if there are any laws involved, if you have enough money, you can force me to stop wearing that shirt, and maybe even pay you damages for the "trauma" of seeing me wear that shirt. I really wish it didn't work that way, and there was a time when people actually worked their problems out WITHOUT calling in a lawyer, but everybody these days is greedy, and they want to sue and get $millions in damages.

    --
    "Da ist ein Technölüst in mein Unterpanten!"
    1. Re:So sue me. by TechnoLust · · Score: 5, Insightful
      Seems to me that the answer to that is as obvious as you say the imperfection of the legal system is. How can soldering some IC chips on a PCB be illegal? That doesn't hurt anyone. What it comes down to is when they are sold. In other words, is there a legal reason for someone to buy these. I think the XBox Linux project would be a very good reason to have one, and I would like to have one for that reason. I have an Xbox and several games. If I want a game, I'm going to go out an buy it. I want a modchip just because I love electronics and I like Linux, so I think it would be cool to run it on the Xbox. Microsoft will argue, however, that the main reason people want these chips is for pirating games.

      I don't think anyone should be able to tell me what I can and can't do with hardware that I purchased, but it happens everyday. My cable company told me I couldn't modify my box to get free pay-per-view. When I left them, my satellite company said I couldn't modify my card to get all the channels. (I have a friend who PAYS for all the channels, but he has a hacked card, because he wants to see the local networks, and because the cable companies are so greedy, his satellite provider couldn't offer it.) My cell phone provider tells me I can't modify my phone's ESN so that I can have TWO phones with ONE number, so I can leave one in the car and not have to pay a second monthly fee and for more minutes. So, let's don't single MS out, because they aren't the only ones doing this. That doesn't make them right, but look at the whole picture. Not only is this attacking the software giant, but also the Communications industry giants. Laws don't matter when there is that much money behind it.

      --
      "Da ist ein Technölüst in mein Unterpanten!"
    2. Re:So sue me. by Stradivarius · · Score: 5, Insightful

      The case in question is not frivalous. MS is correct. The mod chips are illegal under current law. They are circumvention devices. They contain copyrighted code. The names probably even infringe on trademark.

      That's far from certain or correct:

      A) Whether the mod chips are "circumvention devices" is certainly matter a debate. Witness a recent Sony case in Australia (whose law is similar to the U.S.'s DMCA), which found the chips not to be a "circumvention device" under the law. And thus, not illegal.

      B) There's a very good chance the chips do not contain any code that is copyrighted by MS. They don't need to. They might reverse-engineer some technical information, and use that to create their own code, but that is not the same as copying MS code, and does not infringe on any MS copyrights.

      C) The names may infringe on trademarks, but that does not make the product itself illegal. It just makes selling it under that name illegal - the company could still sell the product under a non-trademark-infringing name.

      Yes. That's how courts work. You sue or are sued. A judge decides.

      The alternative is no courts, just executive authority to arrest/imprision/confiscate. That has a history of working really well. You think corporations are too powerful now?

      Judges toss lawsuits everyday of the week. Its a routine part of the legal system.


      I think you're missing the larger, implicit point of the previous poster's comment. It's not that we shouldn't have a judicial system, it's that the current system has a significant bias towards those with wealth. I.e. someone with wealth can afford to file a suit they know is without merit, because it will cost the target of the suit legal fees. If the target doesn't have the money for a lawyer, the wealthy (corporation or individual) essentially wins by default because the target has to stop doing what they're doing, regardless of if it's actually legal. Sure, the suit will eventually get tossed, but in the meantime those bills sure add up fast. Many people can't afford that.

      The solution isn't to scrap the legal/judicial system, it's to improve it. How to do that is an interesting and complex question. It's not clear how to easily discourage this sort of legal skirmishing without discouraging legitimate claims as well.

  11. Microsoft aren't trying to make money... Yet by Dolph · · Score: 5, Insightful

    Regarding point 3 (that Microsoft would encourage development of systems such as Mandrake for the XBox, etc.), I don't think this would be that case.

    At the moment, Microsoft aren't trying to make money (and they're clearly not doing so anyway). Rather they're trying to wrest control of the market from Sony (and, to a lesser extent, Nitendo and other console-makers). Basically they're trying the gain a monopoly in the market (ala PCs).

    Once they have this control, _then_ they can begin to make money. They're sitting on enough cash to run as a loss-leader if they want, lose money at the outset, and then increase prices once people are tied in.

    The development of alternative systems for the XBox may increase the purchase of the consoles short-term, but long-term it opens up the device to others, destroying the whole idea of monopolizing (i.e. they can't increase the price of games development on the system, of all of the software houses can just roll out a version of the game for Mandrake on the XBox to exactly the same end-users).

    I think Microsoft will be no more keen to encourage 3rd party O/S development on the XBox than they are to encourage it in the PC market (and they're in a much better position to control it in the case of the XBox, as they control the hardware directly).

    --
    --
    Beauty is in the eye of the beholder... Oh, no. It's just an eyelash.
  12. And the reverse frequently applies too. by Woodie · · Score: 4, Insightful

    Amazingly enough in the business world, foreign laws are often applied to US businesses. Wow - it's called reciprocity. Amazing.

  13. Re:License & Copyright by iceT · · Score: 5, Insightful

    Even if such an agreement was included, it is questionable if this holds any legal value.

    I bought an XBOX, and since the agreement wasn't on the outside of the box, Buying it is not an implicit agreement of any kind.

    It's not like DirecTV where, when you buy the equipment, they open it right there, take down your information, the box serial number, and make you sign an agreement about establishing service...

    Also, Several of the chips that Lik-Sang sold didn't include any BIOS software... So it literally was just a collection of parts, and a method of connecting those 'parts' to an XBOX... I'd think if they included instructions on how to hook it to your toaster, there's not much basis for a lawsuit.

    --
    -- You can't idiot-proof anything, because they're always coming out with better idiots.
  14. Why XBox by Ektanoor · · Score: 5, Insightful

    Well I don't own an X-Box and don't plan to do it. Anyway, I understand why people want Linux on XBox. The problem has tow sides:

    1. It's a challenge. And Linux community is a world of challengers. The challenge may be making some noses to all-mighty M$. But the mainstream is probably following the old true challenge of getting one more piece of hardware and putting it to test. The versality and universality of Linux was made of these "Will Linux run on Sparc, PPC, Palmtop, S/390...? Even Sony's PlayStation couldn't run from this mood. And let's remember that some people referred to XBox + Linux in the way - "Sony PS-2 was first now it's time for XBox". And they probably are not hunting games, like some lamers speak here. Their objective is more the traditional "hack the thing".

    2. XBox goes much cheaper than the traditional computer. Some have already noted this... And if you wanna use it as a cheap server, why not?

    So these are probably tow vectors that move the crowd. What will happen if M$ cuts the trend. Well it will just loose customers, nothing else. Because if they are not for games then XBox will be nothing for them. And they may loose a large piece of the market. I don't think that Linux hackers can repeat Lego Mindstorms phenomena but there are parallels that force me to remind this story. A few years ago Lego launched is small and cute robot, planning to sell some 10000 units. However, the thing was not so popular among chidren as among hackers (I even have one). At first they didn't like this and tried to charge with all this copyright boolaboo. However when they saw sales jumping over 100000 (10x the expectations), they even started to make publicity to some of these guys.

  15. So are we renting the X-boxes? by ruiner13 · · Score: 4, Insightful
    If we can't use the hardware like we want, wouldn't that imply that it's a rental or lease agreement? If I buy my house, I'm allowed to remove the security system if I don't like it. Sure it's there to protect me, but if I don't want it, I have that choice right? Now if i was renting a house, or leasing it, I could see not being able to modify it. The same goes for cars. I can remove the CPU chip from it and replace it with a "modded" one if I own the car, but they'd be pissy if I was leasing it.

    So, following on that idea, when M$ releases the X-box-2 (or whatever clever name their ad guys come up with) comes out, they'll let me trade in for the new model, right? Or if I accidentally, say, bash it with a sledgehammer, would they sue me? It's "their hardware", or so they imply by not letting us mod it.

    I dunno, I think they are crossing a lot of lines here that they shouldn't. I feel that once I buy something outright, I should be able to do whatever the heck I want with it. Tell bill gates that he can't remodel his house, or replace parts in his car and see how he feels.

    --

    today is spelling optional day.