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Class Action Lawsuit Over Xbox Live Bans

Tom Ivan's picture

By Tom Ivan

November 23, 2009

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[UPDATE: Microsoft respons to possibe lawsuit]

Boutique law firm Abington IP says it could launch a class action lawsuit against Microsoft over the platform holder’s recent wave of Xbox Live bans.

“Microsoft has chosen to use one of the most indiscriminate weapons in its arsenal in an effort to combat piracy… Use of this weapon has resulted in a great deal of collateral damage,” the firm says on its site, as spotted by Inc Gamers. “Many people were affected who had nothing to do with piracy. Furthermore, Xbox console functions that have nothing to do with piracy were also affected or disabled.”

Boutique has posted a form on its website for consumers interested in partaking in the suit. The firm also suggests that Microsoft delayed making Xbox Live bans until new subscriptions had been purchased on the back of major game releases Halo 3: ODST and Call Of Duty: Modern Warfare 2.

“If you are an Xbox Live subscriber, had your modified Xbox console banned from Xbox Live, were not refunded a prorated sum for the time left on your subscription or have experienced other problems as a result of being banned, and would like to participate in a class action against Microsoft, please submit your information below,” reads the site.

Microsoft said last week that it had banned “a small percentage of Xbox Live users found to be in possession of modified Xbox 360 consoles. Estimates put the number of users banned at up to one million, representing five per cent of XBL subscribers, although that figure was shot down by Marc Whitten, the general manager of the online service.

“It’s a cat and mouse game. These were people that were pirating software,” he told VentureBeat. “We try to keep sanctity of life from a safety and anti-cheating perspective and we protect our partners. We didn’t release the number. I cannot explain to you why people would think it was a million people. It wasn’t a million people. Check the veracity of that claim. It was one news source. I think we do a really good job understanding what people are doing on the system. That applies to intellectual property (piracy) and how we treat the community in terms of harassment. We are committed to making it better and better.”

In a statement issued to the Financial Post, a Microsoft spokesperson said of the possible lawsuit. "Piracy is illegal and modifying an Xbox 360 is a violation of the Xbox Live Terms of Use. Microsoft is well within its legal rights to ban these users from Xbox Live."

quietIdentity's picture

For once I totally agree with MS's stance on this.

If you want to play online, it's pretty clear you shouldn't try with a modded console. I'm grabbing a modded console to play games over LAN with mates when they come over (So I don't need to purchase the game twice), sure, some would still say this is wrong. But personally I don't give a shit. However if you want to use MS's personal network to play games online you should most definitely need to be using a legitimate copy of your games. I hope Microsoft destroy these lawsuits. I see how it's perceived to be cheeky to do this right at the launch of these popular online games but it's a good way of kicking them in the nuts.

Ben_Lathwell's picture

actually, if you buy a copy of a game, and then download a copy from a torrent site or copy the disc, it is somewhat of a grey area as you have paid for the rights for personal usage

Alex Walker's picture

I'm pretty sure that under UK law at least, you'd still be in the wrong.

quietIdentity's picture

I totally agree with MS's stance on this (surprisingly). I don't care about people modding their consoles/piracy but if you want to use their online service then get a legitimate console and games or get screwed. People who think they're just entitled to this stuff crack me up.

Sure I've got an extra modded console now, but simply to play games on LAN with friends when they come over.

Doing it at the launch of MW2 was definitely a good way of kicking them in the nuts, kudos MS.

VivaLaJam's picture

Lol at people trying to sue Microsoft when they were in the wrong

If you read the T&C when you buy a 360 it does say not to mod

Rob_Jackson's picture

I totally agree with the law suit. The bone of contention here is not that pirates should be let off. The problem is that MS timed almost to perfection the date to unleash this. Forza 3 and MW2 were about to be released and a LOT of pirates snapped up a 12 month sub to xbox live, which MS then decided to keep the proceeds from. In other words, MS are profiting from piracy and game developers are left out of pocket. Expect this one to grow legs and run.

Twyford's picture

Firstly people have been getting banned from Xbox Live for a long time, so it's not as if this was the first time it had happened. There were warnings on most gaming related sites that MS were going to be tough on this. If people are foolish enough to subscribe to Xbox Live and then play a pirated game that is not Microsofts fault and MS can have no idea at the point of subscription that the person will play pirated games at a future date. As that person is then breaching the T&C's of Live MS are well within their rights to keep the money.

If the game developers feel hard done by then perhaps they should fire up law suits against each and every plaintiff in this case who has identified themself as having been banned for playing a pirated game!

The very best that will have with this case is that it'll get stalled in court for a very long time. These people won't be hoping for a big win against MS, they will be hoping that MS will just want it to go away and will settle out of court, but the MS lawyers have never come across as the type to do that.

Ben_Lathwell's picture

The fact is the people who got banned played the game, the same game as MS, and lost. MS have the right to ban whoever they want whenever they want providing the user breaks the terms of the contract agreed to by signing up to LIVE.

Also i would love to see this law firm go up against MS's lawyers (i.e the best in the world) trying to defend users of pirated software (i.e thieves). But then again what do lawyers care they get paid either way

NickgamertagO1's picture

I'm sure somewhere in the Terms of Service it says if you modify your console you're not entitled to a refund if you're caught (in a more legal sounding way of course). Maybe not I don't know, but if you're modding your 360 to play pirated games (I know a few who do that) you're taking that risk. If you get caught you should face the consequences. I'm sure the money you saved buying new games for 10 bucks will more than make up for you losing out on the remainder of your subscription.

I do find it hilarious that the bans happend right before one of the biggest gaming launches that just happened to have one of the biggest online followings. Good on MS for that one lol. I have no sympathy for cheaters.

Ben_Lathwell's picture

That just about sums up the justice systems in most western countries. Criminals have more rights than victims (and yes by definition MS are the victims here).

These people should have their hands chopped off

hasan's picture

The problem here is that there are too many lawyers not enough cases to go around, so they exploit every opportunity.

The problem with American justice you can sue anyone for anything and you'll properly win something...

Ben_Lathwell's picture

the same goes for U.K justice

Check this
http://www.youtube.com/watch?v=XoVUs3v5sSk&feature=related
who the hell would use this guy as a lawyer

also spoof version

http://www.youtube.com/watch?v=d6s994jOFuY&feature=related