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Hot Legal Issues In Video Games

By Stan Soocher
May 27, 2005

The huge economic losses the entertainment business has sustained from unauthorized downloading by consumers has prompted a closer look at growing ancillary areas for licensing entertainment content such as mobile entertainment and video and computer games. And while the video- and computer-games industry has been hit by unauthorized trading by consumers, unlike the record industry, it has also achieved significant growth over recent years.

With this and intensified business competition has come a rise in contested legal issues. To start, music retailers have been decreasing their shelf-display space for music products and instead increasing their video-games sections. What video-game manufacturers claim on product packaging, as well as the effect of shelf placement at retail stores, were at the center of a suit filed by eGames. In an unfair-competition complaint in the U.S. District Court for the Eastern District of Pennsylvania, eGames ' which claims sales of 16 million video games and more than $160 million in income ' alleged that MPS Multimedia overstated in packaging the contents of MPS video games, such as for mahjongg and solitaire.

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