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Modded Xbox Bans Prompt EFF Warning About Terms of Service

Last month we discussed news that Microsoft had banned hundreds of thousands of Xbox users for using modified consoles. The Electronic Frontier Foundation has now pointed to this round of bans as a prime example of the power given to providers of online services through 'Terms of Service' and other usage agreements. "No matter how much we rely on them to get on with our everyday lives, access to online services — like email, social networking sites, and (wait for it) online gaming — can never be guaranteed. ... he who writes the TOS makes the rules, and when it comes to enforcing them, the service provider often behaves as though it is also the judge, jury and executioner. ... While the mass ban provides a useful illustration of their danger, these terms can be found in nearly all TOS agreements for all kinds of services. There have been virtually no legal challenges to these kinds of arbitrary termination clauses, but we imagine this will be a growth area for lawyers."

32 of 254 comments (clear)

  1. Growth area for lawyers by ServerIrv · · Score: 2, Insightful

    Any place someone feels (correctly or incorrectly) they've been treated wrongly, it is a place for lawyers to grow and make money.

    1. Re:Growth area for lawyers by Anonymous Coward · · Score: 3, Insightful

      Any place someone with money feels (correctly or incorrectly) they've been treated wrongly, it is a place for lawyers to grow and make money.

      fixed that for you.

    2. Re:Growth area for lawyers by Anonymous Coward · · Score: 3, Insightful

      Actually, that's not fixed at all. Thanks to bar associations allowing lawyers to work solely on commission, even people without money can go to court, no money down.

  2. Well.. by Renraku · · Score: 3, Insightful

    Microsoft's network, Microsoft's rules. They're 100% in the right for banning modded consoles. Basically you can play your pirated games or you can play on Live, but not both with the same console. Now what angers me is how they'll send out replacement consoles for warranty repairs that are already banned from Live, and tell the recipient that they must have a modded console and refuse them any recourse. What also angers me is how it would be easily within the law to ban for almost ANY reason, leaving the user with little to no recourse.

    I applaud Microsoft's banning of modded consoles, but condemn Terms of Service in general because they're 99.999% in the favor of the writer. I mean, the company.

    --
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    1. Re:Well.. by palegray.net · · Score: 3, Insightful

      I applaud Microsoft's banning of modded consoles, but condemn Terms of Service in general because they're 99.999% in the favor of the writer. I mean, the company.

      I don't get it. You start out with "Microsoft's network, Microsoft's rules." Note that this isn't specific to Microsoft; you could replace them with any company that operates a network and it'd be the same concept. You then say you're against TOS policies as a blanket statement... what do you actually believe? Any company has the right to set terms of service for the use of their network, and it's up to the customer to decide if those terms are reasonable. If the customer doesn't think so, s/he can choose not to give that company money. It's very simple.

    2. Re:Well.. by palegray.net · · Score: 3, Insightful

      That's pretty much my point. As long as the terms of service set forth by a company don't violate the law, the company absolutely has the right to enforce them. Those who complain about it seem to be taking a distinctly "think of the poor little guy who's getting beaten down" attitude, which I find amusing given the fact that nobody is going to die if they can't log on to some gaming network.

    3. Re:Well.. by palegray.net · · Score: 3, Informative

      Here's the deal: we live in a society that operates under rule of law. If something isn't specifically forbidden, it's permitted. In contract law, unless jurisdictional restrictions exist that nullify a given provision, it's enforced. Even at that, severability clauses will likely keep other restrictive clauses in force.

      You can ramble on about supposed morality considerations all day, but it doesn't change the fact that the law is the deciding factor, and the company that operates the network makes the rules unless otherwise constrained by the law. You aren't going to die if you can't log on to a gaming network and your civil rights aren't being violated, so I sincerely doubt any thinking person is going to care.

    4. Re:Well.. by Firehed · · Score: 2, Insightful

      And the fact that I'm not running a company doesn't change the fact that everyone who is running a company only offers one-sided, unfair, and unconscionable TOSs. And it doesn't change the fact that an individual's choice to "not give this company any money" will not change TOSs one bit unless every consumer decides to stop consuming anything and everything.

      That's simply not true, provided that you make your reasons clear to the company. Of course when you're dealing with companies as monolithic as Microsoft it's easy to feel ignored. But you get ten thousand people who cancel their Xbox Live subscriptions and indicate their reasons for doing so, MS will start to listen. I'm not talking about signing an online petition, but actually sending an email (or, gasp!, a letter) to Redmond. Obviously this applies beyond MS/XBL, and the number of people needed to make change is proportional to the total number of users. But even a tenth of a percent is going to get at least some notice.

      Hell, companies are starting to get a lot more helpful simply by having your complaints reaching a large audience. Whining on your blog (do people still blog?) isn't going to get much done these days, but Twitter seems to be the latest trend in making at least a vague attempt at improving customer satisfaction. Got me a call from customer service and a $10 refund when trying to go through normal email support was a dead-end. (Of course, I'm certainly not impressed that I have to complain in front of hundreds of people to get one to actually help me out, but it DID get me the result I wanted)

      Also, for what it's worth, the reason TOSs are so absurd is because companies have to cover their asses against every situation that's ever been tested in a court of law. 95% of that stuff is generic boilerplate that's been refined to legal perfection, and that same 95% will go unused by 99% of the companies in 99% of the situations. What their intentions are and what has to get covered in the TOS to keep the lawyers happy are pretty much unrelated.

      At the end of the day, companies want your money. If you tell them why they can't have it and/or what they can change to get it, they'll listen. But if all you do is cry in a corner about it, you'll accomplish absolutely nothing.

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    5. Re:Well.. by samurphy21 · · Score: 4, Insightful

      I agree with the first statement. However, this recent round of bans has not only booted banned users from the microsoft network, but also reduced the OFFLINE capabilities of the console. The banning corrupts the NAND on the console, removing the ability to install games, purchased or otherwise, to the hard drive. Those who bought a large hard drive in order to install games to it to speed up load times (a function supported by the console, not something you get through modding) are now unable to do so.

      I agree that kicking us off the network is WELL within their rights, but changing the capabilities of my console is not. I should be able to do what I want with my hardware, since I bought it. If I choose to mod it then, yes, I'm violating EULA and Microsoft no longer has to offer me support or access to their network, but they do not have the right to modify my hardware's offline capabilities.

    6. Re:Well.. by LordKronos · · Score: 2, Informative

      They're 100% in the right for banning modded consoles. Basically you can play your pirated games or you can play on Live, but not both with the same console.

      Well, I haven't actually seen this confirmed in a media source, but I've read that people were banned for performing an unofficial hard drive upgrade. MS charges an insane amount for a larger HD for the 360, but people have found you can buy specific model drives, image the new drive with the proper firmware, and swap it into the HD case. That way you get a bigger HD for $50 instead of $200. This has no effect on a persons ability to do anything with the console except have a bigger hard drive (no copying games or anything). The only thing that is different, which allows MS to detect this, is that the firmware has an embedded serial number, which MS can detect remotely and validate. Since the firmware was imaged from a legit 360 hard drive, your HD firmware will have the same serial number as the drive the firmware was imaged from.

      If these reports I've read are actually true (and not a case of a pirate simply CLAIMING that a HD upgrade was all they did), then I don't think that's 100% in the right at all. It affects nothing except for their ability to strongarm you out of an expensive HD upgrade. No piracy issue, and no compromising the quality of other people's online experience.

  3. Re:anything goes by palegray.net · · Score: 2, Interesting

    Rights? What "rights" do you have here aside from choosing whether or not to give a company money? Your basic human rights aren't being violated here, and I don't see anything illegal happening with respect to a company's right to set terms of service for the use of their network.

  4. Re:Well..Term limits. by palegray.net · · Score: 3, Insightful

    Okay, seriously. They own and operate their network. Let's reverse this: what gives you the right to tell them how to operate it?

  5. It is their right, but aggressive move nonetheless by Snatch422 · · Score: 4, Interesting

    I think Microsoft is being aggressive in it's strategy. Warnings, even many warnings and second chances, third chances, etc should be utilized before doing something irreversible like this (also an appeals process would be in order). It certainly is their right to ban people from their network based on a written policy but psychologically speaking they are angering a great many customers. By taking such extreme action, they are encouraging better hacks and workarounds in the future. Plenty of computer software is much more graceful and works well on a positive reinforcement encouragement system. Even Microsoft Windows and Office handle these types of situations much better. There will always be piracy but it should be discouraged and not challenged for the truly best end results. A lot less music is pirated now simply by offering it for sale in MP3 form and encouraging people to do the right thing.

  6. Ooo... now contracts must not matter to EFF by sl3xd · · Score: 3, Informative

    I don't mean to sound like I'm defending Microsoft, but...

    If you enter into any contract, you have to abide by the rules. There's NOTHING new here. Online service, game service (like Xbox Live), Phone service... even a lawn mowing service has terms to its contract.

    Guess what kids? Your actions have consequences. You should have the maturity to own up to those consequences.

    Contracts (and contract law) aren't anything remotely new. They've been thought out by many a great thinker for millennia. Calling contract law a "growth market" is about as far from the truth as it gets. Contracts are one of the oldest, most hashed-out, and most concrete aspects of law in any society. The entire point of contract law is to avoid lawsuits, specifically because there is so little wiggle room if both parties agree to the contract.

    --
    -- Sometimes you have to turn the lights off in order to see.
    1. Re:Ooo... now contracts must not matter to EFF by DNS-and-BIND · · Score: 5, Insightful

      In no event shall Microsoft be liable for any damages whatsoever, even in the event of fault (including negligence).
      -- Windows XP Professional license agreement

      What kind of contract is this? And the same contract allows Microsoft to change the terms of the contract at any time, without notifying me? I would never agree to such a thing. But, Windows is required in order to work. So I say out loud, "I disagree with these terms" and click the button to continue. Microsoft, having had a chance to respond and remained silent, can only be assumed to have agreed with my deal, since it clearly is continuing with the software installation. Obviously the whole thing was just a bluff to get me to agree to some ridiculously one-sided terms.

      Terms like these I would never, ever accept in any deal, business or otherwise. Including negligence! Imagine a lease or even a parking stub with such language on it. It's basically admitting that they're negligent before the deal even starts...who on Earth would do business voluntarily with a party who says up front that you can expect negligence on their part?

      --
      Shutting down free speech with violence isn't fighting fascism. It IS fascism!
    2. Re:Ooo... now contracts must not matter to EFF by bwcbwc · · Score: 3, Informative

      EFF doesn't have a problem with contracts, they're just pointing out a few facts: a) courts can void contract terms for various reasons. Witness the Early termination fees on wireless phone contracts in California. b) The EFF isn't necessarily saying the contracts aren't enforceable. They're saying no one's gone to court to see if they're enforceable. c) The EFF is saying that consumers need to pay more attention to this crap before they get raked over the coals the way the XBox modders did.

      --
      We are the 198 proof..
    3. Re:Ooo... now contracts must not matter to EFF by SharpFang · · Score: 3, Funny

      I preferred the websites that present TOS in editable textarea. Textarea implies invitation to edit = negotiation.

      I tend to edit these to my needs and save myself a copy. Of course by clicking "I Agree" I -am- sending these back to the originating server (if they don't get them, it's their negligence).
      Since they accept the edited copy, I can safely assume they agreed to changes.

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  7. Re:It is their right, but aggressive move nonethel by cbensinger · · Score: 2, Insightful

    I have no problems with what they did; but I question their logic. Those consoles that are banned from Live for being "modded" can still obviously play pirated games. What they *can't* do is go on live and among other things purchase things. So while they will undoubtedly sell some more consoles (Craigslist and eBay are full of banned consoles) and probably some more games - I don't really see this as doing much to stop piracy - I only see it stopping any legit spending from those consoles.

    Seems to me that there must've been a better way to handle this; but that's just me.

  8. Re:Well..Term limits. by palegray.net · · Score: 3, Insightful

    That doesn't pass for justification. You paid them money in exchange for access to their network according to their terms of service. If you want the right to dictate how they operate their company, you'll need to be a shareholder (minimal influence unless you've got a hell of a lot of shares), on the board of directors, or a C-level employee.

  9. Re:Well..Term limits. by palegray.net · · Score: 2, Insightful

    Nothing gives me the right to tell you what to do with that gun. If you choose to do something illegal with it the courts will deal with you.

    That's a terrible strawman, by the way. It doesn't even make sense as a counter-argument, and almost agrees with my point.

  10. Re:Well..Term limits. by mwvdlee · · Score: 5, Insightful

    Exactly.
    And it's not like you don't have the choice to just connect your XBox 360 to another service provider, right?
    Right?

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  11. Re:It is their right, but aggressive move nonethel by cbensinger · · Score: 2, Informative

    Yeah, and they also can't install games to the hard drive, nor move accounts back and forth from a banned system to a non-banned system from what I understand. So yes there is a loss of functionality as well.

  12. Just saw something interesting with Borderlands... by Anonymous Coward · · Score: 3, Interesting

    When I installed it, it popped up an EULA that stated that the company reserved the right to modify the agreement from time to time (changes to be posted to their website) and that my continued use of the software 30 days after these changes constitutes my acceptance of said changes.

    I should mention, this is a retail boxed version of a game that doesn't require any online service to run.

    Then there's Windows 7. Bought the upgrade to put a legit copy on a new system. But apparently, and this was stated nowhere online at the time of purchase (including Microsoft's site, and I checked thoroughly), this upgrade is only properly licensed if I put it on the computer that had the OEM version of XP on it. Impossible, as its motherboard died, and even the OEM XP had no mention on its packaging or on the website that it would only be valid on the first system it was installed on (as indicated by the motherboard in said computer, even if the motherboard needs replacement).

    You really are treated worse than a pirate when you pay for your software. You can't even properly lend or swap games with friends anymore, even on consoles like the Xbox 360 because of DLC.

  13. Re:Well..Term limits. by palegray.net · · Score: 2, Funny

    In deference to your request, I shall call you Sally instead.

  14. Re:Just saw something interesting with Borderlands by Khyber · · Score: 2

    "You can't even properly lend or swap games with friends anymore"

    "Yep. This is why I pirate MS products, buy Apple products"

    Logic fail.

    --
    Still waiting on Serviscope_minor to wake up to fucking reality and realize that Jessica Price isn't going to fuck him.
  15. Buy a second box by Baby+Duck · · Score: 3, Interesting

    If you really, really, really care THAT DAMN MUCH about modding your XBox, you'd buy 2 -- one for online play on XBL, the other for souped-up media center purposes. Can't afford a second XBox? Then maybe modding and/or XBL isn't for you.

    A modded XBox increases the probability the end user has a cheat enabled to give you an unfair advantage in an online competitive game. I applaud any service that wants to preserve purity in a competitive arena. It's just like every major competitive sport having regulations over the specifications of all equipment used in all games.

    --

    "Love heals scars love left." -- Henry Rollins

  16. Re:get a Gaming PC by cbhacking · · Score: 2, Insightful

    Anecdotal, of course, but I've seen a lot gaming PCs where one part or another has failed (in one case, the power supply went, taking with it the mobo, CPU, and video card - any one of which cost a good chunk as much as an Xbox 360).

    In fact, as somebody who got his first gaming console after the release of the Xbox's Jasper chipset (I gamed on PC long before that), neither I nor anybody I know has had a RROD with the new chipset (and only one person in that time with an older one). Don't get me wrong, the first versions undeniably had problems and it's fair to blame MS for them back then, but to suggest (as your post does) that RROD is still substantially more likely than a gaming PC part failure is simply bullshit. Blame a company for its past errors, but don't pretend not to see when they learn from those mistakes.

    --
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  17. It's a net loss by NitroWolf · · Score: 5, Interesting

    My console was banned for being modded. The thing is, it was modded because the DVD drive died and I replaced it... the only way I could do this "legitimately" was to buy a whole new console, since MS claimed it was no longer under warranty. I wasn't about to spend $250 or whatever it was at the time (this was a couple years ago) to buy a whole new console when I could buy a new drive online for less than $60.

    So I had a modded console... I played exactly 2 games that entire time, Rock Band and Rock Band 2. The original of Rock Band worked perfectly and when Rock Band 2 came out, I purchased it... well the original had trouble playing in the console, so I used a burned copy, which ironically played fine. During that time, I purchased nearly 100 songs for RB and RB2 and maintained a Live Gold subscription. My gamer profile confirms that I haven't played any other games than RB and RB2 since I replaced the drive.

    So my console is banned. I will cancel my Live Gold account ($50+ a year or something) and I will no longer be able to purchase songs for RB2 or future RB games that come out. So by banning me, they've lost a continual revenue stream that has exceeded the purchase price of a console. Sure, they already have my money for the RB2 songs I bought, but they aren't able to get more, even if I wanted to pay them money.

    What kind of stupid idea is this? Unilaterally cut off your customers who pay you money regularly and prevent them from being able to pay you any more money. Wow. What a brilliant business move.

     

  18. What good would a warning do? by abigsmurf · · Score: 4, Insightful

    "we have dectected you have a modded consoles, if you do not travel back in time to prevent yourself from modding your console, you will be banned."

  19. It is a private network by DaveV1.0 · · Score: 2

    XBoxLive is Microsoft's private network. Only Microsoft has a right to use it. For everyone else, the use is XBoxLive is a privilege.

    Microsoft owns it. Microsoft runs it. Microsoft sets the rules. Microsoft says the service is for unmodified XBox systems and if you have a modified XBox, you can't use the service.

    XBoxLive is a service and Microsoft does not have to provide the service to anyone it doesn't want to provide it to as long as it isn't discriminatory under the law.

    The EFF needs to shut the fuck up until it dig it's collective head out of it's collective ass.

    --
    There is no "-1 offended" or "-1 you don't agree with me" mod options for a reason.
  20. Re:on owning a banned console by bryansj · · Score: 2, Informative

    You can restore your banned console to its pre-banned state if you are handy with a soldering iron and have an old printer cable. Your console is still banned, but your NAND will be at its prior state so you can transfer saves, install to HDD, and use MCE. Just go to xboxscene.com and read about it.

  21. Re:Well..Term limits. by RMingin · · Score: 2, Informative

    The partition has an obfuscated copy of the drive's serial number. Data on drive doesn't match drive itself = you can be banned.

    --
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