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Sony Sues Over PSP Imports

Posted by Zonk on from the multimillion-dollar-oops dept.

An anonymous reader writes "Although the official European launch isn't until September, Europeans have already been able to buy imported PSPs. Sony has sent out a batch of cease and desist letters, claiming that selling the PSP without permission violates their trademarks. The Register reports on the legal fight between Sony and online retailler ElectricBirdLand." From the article: "The Japanese manufacturer is claiming infringement of Trade Mark. But one reseller at the receiving end of the legal nastygrams, ElectricBirdLand, claims that key technologies, trademarks and software utilised in Sony's new portable gaming platform have not even been registered by Sony in the UK. For example, the PSP trademark has apparently been registered by a small Bristol-based IT and design firm, called Owtanet."

45 comments

  1. Uh-Oh by idonthack · · Score: 1

    the PSP trademark has apparently been registered by a small Bristol-based IT and design firm, called Owtanet

    Isn't it illegal to do that kind of thing?

    --
    Why is it that when you believe something it's an opinion, but when I believe something it's a manifesto?
    1. Re:Uh-Oh by Anonymous Coward · · Score: 0

      not if it stood for something legit and was around before Sony's PSP.

    2. Re:Uh-Oh by Anonymous Coward · · Score: 0

      Paint Shop Pro!


      ...pretty shitty portable?

    3. Re:Uh-Oh by MMaestro · · Score: 2, Insightful
      Peer-to-peer Shopping/Shipping Protection?
      Portable Shooting Practice?
      Precision Shot Projectile?

      Its not hard to come up with something with the initials PSP.

  2. Hmm... by bluemeep · · Score: 1
    For example, the PSP trademark has apparently been registered by a small Bristol-based IT and design firm, called Owtanet.

    I'm sorry, but that just sounds sloppy to me. I'm a wee bit on the unfamiliar side of UK business laws, but shouldn't Sony have filed for trademark rights the moment they even considered selling the system in Europe? I honestly think the guys that registered it before them are just money-grubbing scumbags, but it seems to me Sony should've taken action long ago.

    1. Re:Hmm... by sesshomaru · · Score: 4, Informative
      They aren't money grubbing scumbags, it's a different acronym, see their Website:

      PSP® E-Commerce

      In fact, this shouldn't affect Sony's trademark at all, since Sony is tradmarking a portable media player, and they have trademarked an ecommerce solution. The trademarks don't overlap.

      --
      "MIT betrayed all of its basic principles."
    2. Re:Hmm... by bluemeep · · Score: 1
      Amazingly enough I didn't bother doing in-depth research in the matter. The article made it sound as if they were just squatting on the name, so that was my assumption.

      Scumbag statement retracted, though.

  3. Why should Sony be able to dictate this? by SamNmaX · · Score: 4, Insightful
    This is silly. Why should it be illegal to import legally purchased PSPs for resale in another country? When a distributor gets exclusive rights from Sony, that should be limited only to the PSPs received by them. That is, Sony won't sell to other distributers.

    However, once they are out of Sony's hands, who are they to say who can buy and sell it? As well, how is it trademark infringement? Sony has already gotten their money. They should have no right to this kind of control.

    1. Re:Why should Sony be able to dictate this? by gl4ss · · Score: 1

      sony shouldn't be able to dicatete this, but it damn well tries(because it sees profit in setting different pricing and availability to different markets).

      but seriously though, how do they infringe on any copyright or trademark?? the devices must have been bought from sony in the first place and so any copyrights and trademarks are rightfully in use.

      --
      world was created 5 seconds before this post as it is.
    2. Re:Why should Sony be able to dictate this? by neostorm · · Score: 1

      I've always wondered this same thing about imports and regional limits in general. Can someone answer why exactly importing games and DVD's from overseas is so discouraged? It can't possibly be due to marketshare concerns, I wouldn't think that people who import media would be such a large percentage of potential domestic customers for the same product, so it must be something else, right?

    3. Re:Why should Sony be able to dictate this? by Anonymous Coward · · Score: 0

      It's so that they can set different prices in different markets.

    4. Re:Why should Sony be able to dictate this? by FictionPimp · · Score: 2, Insightful

      And that fact is why a global economy will never work, because nobody wants it. Fair trade is only fair when your the one on top.

  4. Sony should chill out by alias420 · · Score: 2, Insightful

    There are a ton of people from europe over at the PSP Hacks forums. It's not like these units are being stolen and sold, Sony is still making their money. They should chill out.

  5. Beyond stupid by Jarlsberg · · Score: 4, Insightful
    Parallell importing/grey imports are strictly for the hard core gamers. There is no chance this will hurt Sonys sales target when the PSP is eventually released in Europe. Going after the importers is just stupid, because they are getting the units out to the innovators, and they can often make or break a product.

    It's just daft of Sony to wait so long before they release it in Europe. As long as Sony is unable to satisfy the demand, someone else will supply the goods. Sony can cry foul all they want for all the good it will do them.

    1. Re:Beyond stupid by Anonymous Coward · · Score: 0

      This isn't even "parallel importing" that sony's suing over! Sony isn't shipping a product for the imports to be parallel to!

      I just think its interesting that Sony went to all this trouble to highlight how games wouldn't be region coded, and then they go and do this. It doesn't help that SCEE(urope) is always late with everything, either.

  6. What's trademark got to do with it anyway by F�an�ro · · Score: 1

    If someone is selling genuine PSPs that he legaly bought, where is the trademark infringement?

    Even if he did not buy them but stole them or something I still do not see any connection to trademark laws

    Makes no sense at all to me

    1. Re:What's trademark got to do with it anyway by Anonymous Coward · · Score: 0

      Actually, it does make sense.

      To be able to sell an imported PSP, you have to use their trademark somewhere in your advertisement. Thus, since that's commercial use (you are making money by selling it, even if you don't profit), you're infringing trademark.

      I don't agree with it, but I can just about guarantee you that's how they are looking at it.

    2. Re:What's trademark got to do with it anyway by F�an�ro · · Score: 1

      hmm. But it should not matter whether it is imported or not, so are second hand PSPs now a trademark violation too?

    3. Re:What's trademark got to do with it anyway by Anonymous Coward · · Score: 0

      If they wanted to, they could attempt to sue on those grounds. In the US, they'd likely be ruled against, in favor of first sale.

    4. Re:What's trademark got to do with it anyway by SetupWeasel · · Score: 1

      And you just committed trademark infringement. Using "PSP" to promote your post. Oh no! Now I've done it! Please Sony, don't sue me!

      Egads! I just used "Sony!"

      Crap! I did it again!

    5. Re:What's trademark got to do with it anyway by FLEB · · Score: 1

      Unless you're saying that something that isn't a PSP is a PSP, and they aren't calling themselves "authorized resellers" or the like, there shouldn't (USA, IIRC, IANAL, YMMV) be any trademark infringement claim. The trademark is there to truthfully distinguish the Sony product from imitators.

      Of course, with European/International IP law, I know nothing, so I might be (probably am) wrong.

      --
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      Entertainment wants to be paid.
      You just want to be cheap.
  7. What's mine is your? by Zarian · · Score: 2, Insightful

    I do not know what reselling laws are in other countries, but last I checked once I purchased a product, whether it be a pizza, car or Computer I am now OWNER of said product. Therefore I can do whatever the hell I want with it.

    1. Re:What's mine is your? by kannibal_klown · · Score: 3, Informative
      I do not know what reselling laws are in other countries, but last I checked once I purchased a product, whether it be a pizza, car or Computer I am now OWNER of said product. Therefore I can do whatever the hell I want with it.

      Depends. Retailers don't just go onto a webpage and order x-thousand PSP's so they can sell them at various outlets. They usually contact a distributor (perhaps Sony itself) and hash out an agreement to sell PSP's. These agreements are in the form of contracts with stipulations that must be followed.
      For example:
      • Retail chain A decides it wants to sell PSP's
      • Retail chain B contacts Sony and lets them know of their intent.
      • Sony agrees, but makes them sign a contract.
        • Contract states the quantity or pricing scale for PSP units.
        • Term 1 says Retailer A cannot sell to certain countries where PSP has not been officially released.
        • MAYBE Term 2 says Retailer cannot sell en-masse to a 3rd party retailer. That 3rd party retailer must contact an official distributor or Sony itself.
      • Retail A sells PSP's to 3rd party B in another country
      • Sony gets pissy because selling to certain countries is in breach of contract.

      I'm not saying this is the case here. But retailers have to jump through hoops where-as consumers just have to shell out the cash.
    2. Re:What's mine is your? by kannibal_klown · · Score: 1
      Oops, typo. Meant to say Retail Chain A.
    3. Re:What's mine is your? by tenchi90 · · Score: 1

      Except software in which you have only the rights as stated in the EULA of the software, mabee they think they file not the hardware but the software that is ON the PSP. Just a guess.

    4. Re:What's mine is your? by KDR_11k · · Score: 1

      I'm not too sure about that applying under EU law and even in the US an EULA is only enforceable because they say you can be reasonably expected to know what's in an average EULA. That doesn't hold true for non-average EULAs so those are still on very shaky ground.

      --
      Justice is the sheep getting arrested while an impartial judge declares the vote void.
    5. Re:What's mine is your? by OglinTatas · · Score: 1

      How about this then:

      Retailer Alice wants to sell PSPs, contacts sony, signs contract, yada yada yada.

      Consumer Bob buys 100 PSPs from Alice, puts them on ebay.uk, starting at full retail price, buyer pays shipping.

      Consumer Carol (and 99 of her closest friends) buy said PSPs, at various prices from full retail to retail x2.

      Bob makes out. Later, Bob begins email courtship with Carol, travels to Europe on the profits of several such ebay ventures, and he and Carol make out.

      --
      More music, fewer hits
    6. Re:What's mine is your? by sandwiches · · Score: 1

      I could understand Sony suing for breach of contract, but they're not. They're suing for trademark infringement.

      In this lawsuit, it is obvious that Sony has no other legal feet to stand on. I'm afraid that this will happen more often as more ridiculous intellectual "property" laws come into play.

      Sony: "You're doing something we don't like with our product. You're not really breaking the law, either, but since we own the patent, trademark, and copyright to the PSP we'll use that instead."

      This only goes to show how far this I"P" craze is going. It seems no one can actually own anything, nowadays. Everything is now simply being "licensed" and if you do something the "licenser" doesn't like, they'll sue you for some I"P" violation.

  8. What are you on about? by joshsnow · · Score: 1

    Did you bother to look at their website? It's at http://www.owtanet.net./ They registered PSP a long time ago.

  9. I know UK copyright law fairly well... by Landak · · Score: 2, Insightful

    And there is no way in hell that case would ever succeed. The whole 'free market' that we're lead to believe we have (though don't believe we actually have one) does kind of apply; it's identical to a shop buying products from someone else, and selling them on at profit. It's trade. It's commerce. I'm surprised the chamber(s) of commerce haven't got up in arms about this....

    --
    My UID is prime. Is yours?
    1. Re:I know UK copyright law fairly well... by Andy_R · · Score: 2, Informative

      If you knew the law well, you'd know about the Tesco v Levi case, where Levi pulled exactly the same crap to stop us from buying 501s at real-world prices and won.

      Here's the BBC's write up on the case

      --
      A pizza of radius z and thickness a has a volume of pi z z a
    2. Re:I know UK copyright law fairly well... by wallykeyster · · Score: 1
      If you knew the law well, you'd know about the Tesco v Levi case, where Levi pulled exactly the same crap to stop us from buying 501s at real-world prices and won.

      Actually, it was only a partial victory, as the court ruled that Tesco can continue importing from other EU countries without Levi's permission. Levi was able to stop imports from the US, something Tesco had stopped doing in 1998 anyway. However, I do agree that it appears this could be used to stop large-quantity PSP imports from non-EU countries.

  10. PSP Japan sales lower than previously thought? by LoverOfJoy · · Score: 1

    So PSP has done poorer in Japan than we thought because some (many) of the sales actually include European buyers? I would expect Sony to want as many sales as possible so they can point to Japan as a resounding success and create excitement in Europe and elsewhere. Instead Sony is now drawing attention to the possibility that Japan is not all that interested in their product and are now trying to pawn it off to Europe? How does Sony benefit from this lawsuit?

    1. Re:PSP Japan sales lower than previously thought? by KDR_11k · · Score: 1

      Sony is already about a million behind the DS in Japan despite launching maybe a week later and the sales are pretty close week for week. Calling Japan a resounding success would mean to ignore the one million unit lead the DS has there (where 1 million is pretty close to the total number of PSPs sold).

      --
      Justice is the sheep getting arrested while an impartial judge declares the vote void.
  11. Ok. Exactly how well is the PSP going? by AzraelKans · · Score: 0, Flamebait

    This is the second article Ive read THIS month about pulling what could be called a bad business decision over the PSP, without counting it was basically a "no show" during the e3.

    Im begining to notice less developers commiting to developing for it. Ive noticed that they are not getting bought in stores. This is all adds up to one thing.. How many psps have been sold? there are like I dont know 15 games in the works for it. and the best of them are dated for next year (not xmas) and knowing E3 I think only FF and GTA have a solid release date.

    Is sony aware of their actual situation in the market? I mean what is going on?

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  12. This is just stupid... by Man+In+Black · · Score: 3, Insightful

    Here's an idea Sony: Instead of wasting money on pointless lawsuits that are going to piss off the people who are willing to go the the extra time and expense to get your product, how about putting that money towards speeding up the official European launch? If your product was actually available there, then people wouldn't be forced to do this.

    --
    -"One machine can do the work of fifty ordinary men. No machine can do the work of one extraordinary man." -EH
    1. Re:This is just stupid... by hubang · · Score: 1

      Yeah! Quit whinning Sony. Your *customers* (the guys that fund your takeovers of American movie companies) want to buy a product you're already selling.

      And add a hard drive to it too! I don't want to buy those stupid memory sticks you keep pushing!

  13. I don't get it... by MagicDude · · Score: 1

    Can someone explain to me why Sony has such a huge problem with this? The stores are moving the merchandise. Is some guy at Sony HQ going "Damn them all. Don't they know we want the DS to get MORE market penetration in Europe before we launch the PSP there?"

    1. Re:I don't get it... by SetupWeasel · · Score: 1

      it is probably because they are planning on selling the PSP for more than it is being imported for.

      That is the only thing I can think of.

      Damned corporate Communists. They only preach the free market when it benefits them.

    2. Re:I don't get it... by wheany · · Score: 1

      The official price hasn't been revealed, but the PSP it from Lik-Sang + customs + VAT was less than what the rumored price was. And I already have my PSP now.

  14. What's the big deal? by alvinrod · · Score: 1
    Who really cares in the first place? Only a small minority of people will actually be willing to import a PSP. Even more true if the imported PSPs have a different Region code, and they won't be compatible with the games and whatnot released later. Some of these people might end up with 2 PSPs then.

    Sending a few over there would probably work in Sony's favor.

    Kid 1: "Wow! Is that a PSP?"

    Kid 2: "Sure is."

    Kid 1: "When can I get one? They look so awesome."

    Kid 2: "I imported mine, but they'll officially be launched soon."

    To a certain extent, I think this would drive up the consumer interest in PSPs.

    Why do companies do such stupid things?

    On a side note, I wonder what would happen if someone was mass selling them on ebay to Europeans...

    1. Re:What's the big deal? by The+Evil+Couch · · Score: 1
      ...I wonder what would happen if someone was mass selling them on ebay to Europeans...

      it means you could skip the third step and go straight to profit.

      --
      The World's Worst Webcomic!
    2. Re:What's the big deal? by EnglishTim · · Score: 1

      Well, you'd have thought that, but it seems that the import market for the PSP is actually quite large. HMV (A large music/dvd/games retailer in the UK) has actually started selling accessories for the PSP already, even though the PSP won't be launched over here until September. This suggests to me that there's actually quite a lot of imported PSPs floating around.

      Certainly I imagine that a good proportion of early adoption types will have bought a PSP before it has been officially released - it'll be 179.99 pounds over here, and you can get an import one for that price. What's more, if you get a US PSP you'll be able to order region 1 UMDs for it before they get released over here and for about half the price. It just makes sense.

  15. Except for the fact that Sony LOSES money... by MMaestro · · Score: 2, Insightful
    for each PSP unit sold. The general rule of thumb in the video game industry (with Nintendo being an exception and Sega totally failing at this) is to sell the system at a loss (see: Xbox and the gaping hole of lost money) and make it all back and more with the software SOLD. (see: PS1 and PS2's insanely huge and lucrative libraries.)

    Hacks, homebrewed games and utilities make NO profit for any company unless the system is sold at a profit. There is no 'well its a victory in marketing' because Sega tried the same thing and was crushed utterly by Sony with the Dreamcast.

  16. Dear Sony by Anonymous Coward · · Score: 0

    Fuck off and respect the free market.

    Regards,

    AC