Posted 11/20/09 at 10:45:44 AM by Paul Lilly

Up to 1 million Xbox modders were pretty pissed to find that they had been banned from Xbox Live following the release of Call of Duty: Modern Warfare 2, the biggest launch in entertainment history. The mass ban was intended to prevent pirated copies of the highly anticipated game from spreading, a notion Microsoft will now have to defend in a class action lawsuit filed against the company.

"Although modification of Xbox consoles is arguably against he terms of use for Xbox/Xbox Live, Microsoft 'conveniently' timed the Xbox console ban to coincide with the release of the new Call of Duty: Modern Warfar 2 game and less than two months after the release of the very popular Halo 3: ODST game," says AbingtonIP, the Texas-based law firm who filed th suit.

According to the lawsuit, the timing of Microsoft's widespread ban may have resulted in more Xbox Live subscription sales than if the bans had taken place before the release of Halo 3: ODST and CoDMW2. The lawsuit also claims that some of the bans locked out users who had modded their consoles for reasons other piracy.

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Posted 11/17/09 at 07:05:34 AM by Paul Lilly

3Com's board of directors and the company's shareholders appear to be at odds over a proposed $2.7 billion merger agreement with HP that was announced last week. Displeased with the potential merger, the shareholders have filed a class action lawsuit in hopes of preventing the deal.

The complaint names the entire company's board of directors and accuses the defendants of attempting to deceive 3Com shareholders by agreeing to a deal that undermines the true value of their investment in the company, TechCrunch reports.

Under terms of the agreement, HP would pay stockholders of 3Com $7.90 per share, but the bankruptcy lawyer who filed the case on behalf of the plaintiffs argues that 3Com's directors should have insisted on a higher price.

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Posted 11/16/09 at 07:30:32 AM by Paul Lilly

Apple didn't just win its case against Psystar, it demolished the "open computer" vendor whose Mac clones triggered a legal battle over whether or not the hackintoshes violated Mac OS X's EULA. According to Judge William Alsup, it most certainly does. In fact, the judge ruled in Apple's favor on every count brought to the court's attention, although the biggest focus was on copyright.

"Psystar's use of Mac OS X has been in excess and has violated Apple's copyrights," the judge wrote at one point in his 16-page order.

According to Groklaw, there are still issues that remain for trial, including allegations of breach of contract, induced breach of contract, trademark infringement, trademark dilution, trade dress infringement, and state unfair competition under California Business and Professions. In other words, the best case scenario for Psystar at this point is that it will be held liable for damages on Apple's copyright claims, but with its primary defense now seemingly dismantled, the company appears to be in a world of hurt. Or as Groklaw puts it, "Psystar is toast."

Get all the gory details here.

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Posted 11/10/09 at 07:08:14 AM by Paul Lilly

Perhaps looking to restore order in the court -- and a little common courtesy -- a federal judge in Georgia has banned using Twitter while in the courtroom, CBSNews.com reports.

According to U.S. District Judge Clay Land, Rule 53 of the Federal Rules of Criminal Procedure should be interpreted to ban Twitter. This is what it says:

"Except as otherwise provided by a statute or these rules, the court must not permit the taking of photographs in the courtroom during judicial proceedings or the broadcasting of judicial proceedings from the courtroom."

The ban came after a reporter for the Columbus Ledger-Enquirer asked permission to tweet the deets from a corruption trial, which was scheduled to start on Monday.

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Posted 11/06/09 at 10:45:10 AM by Paul Lilly

It's all fun and games, until that game you downloaded from the iTunes App Store turns out to be harvesting your cell phone number. That's what gaming developer Storm8 has been accused of doing.

"The wireless telephone numbers of users' phones are not used or necessary to play any of Storm8's games, yet Storm8 has written the software for all its games in such a way that it automatically accesses, collects, and transmits the wireless telephone number of each iPhone user who downloads any Storm8 game," states a lawsuit filed on behalf of Lynwood, Washington resident Michael Turner.

Storm8 first came under fire in late August when news reports pointed out that Storm8's apps appeared to be phoning home. Addressing the reports, the company said the system had a "bug" and that it has since been fixed. But Storm8's explanation isn't enough for Turner's lawyer, who says his goal is to ensure the company is no longer allowed to collect private data in the future.

"A public admission is not the same as a legal representation or legal injunction," Turner's lawyer said.

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Posted 11/04/09 at 12:45:15 PM by Paul Lilly

It seems like everywhere Intel turns it's being sued over alleged antitrust violations. The latest lawsuit comes from New York Attorney General Andrew Cuomo, who claims Intel threatened computer makers and made a series of illegal payments to coerce them into using its chips. In other words, the same accusations AMD has been harping about for a good many years now.

"Rather than compete fairly, Intel used bribery and coercion to maintain a stranglehold on the market," Cuomo said in a statement. "Intel's actions not only unfairly restricted potential competitor, but also hurt average consumers who were robbed of better products and lower prices."

Intel has faced similar lawsuits earlier in the year, and in May, the European Commission hammered Intel with a record $1.45 billion fine for antitrust violations. Intel is currently appealing the ruling.

The latest lawsuit is significant because it's the first formal antitrust action against Intel by any government agency in the U.S. in more than a decade, the New York Times reports. Intel has been under investigation by the FTC since 2008, but that hasn't led to any formal proceedings.

"These are separate investigations, but it would be very surprising for New York Sate to go off on its own without being fairly confident the FTC would pursue Intel as well," a person familiar with the state's investigation told NYT.

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Posted 10/30/09 at 12:35:46 PM by Paul Lilly

If only spammers had the dough to pay their court-appointed fines, Facebook could make a full-time living in the courtroom. The social networking site slapped Internet marketer Sanford Wallace with a lawsuit alleging he was accessing Facebook accounts without permission and posting fake messages on users' Walls. The judge didn't take kindly to Wallace's actions and awarded Facebook with a little over $711 million in damages.

Not a bad day in court for the social networking site, but Facebook doesn't stand to receive anywhere close to that amount, and it knows that.

"While we dont' expect to receive the vast majority of the award, we hope that this will act as a continued deterrent against these criminals," said Sam O'Rourke in a company blog post.

Maybe it will, maybe it wont.  Last November, Facebook won an $873 million judgment against Adam Guerbuez and Atlantis Blue Capital for a phishing scheme, but has yet (if ever) to collect on that. And therein lies the problems with these judgments.

Getting back to Wallace, the exorbitant fine may not be the only thing he has to worry about. The judge in the case referred Wallace to the U.S. Attorney's Office requesting that he be prosecuted for criminal contempt, so it's possible he could serve some jail time.

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Posted 10/28/09 at 02:40:16 PM by Paul Lilly

Sony isn't the only one in hot water with U.S. antitrust regulators. Both Toshiba and Hitachi have also fallen under the watchful eye of the U.S. Department of Justice and will have their optical device divisions investigated, The Inquirer reports.

Once again, not a whole lot of details are yet known, but just like with Sony, it's believed that the DoJ is sniffing out something afoul with each optical makers' Blu-ray line. More specifically, it's likely each company is being probed for potential price fixing allegations.

Before being knocked out of contention, HD-DVD players could be snagged for as low as $99, which coincided with a promotion to receive a small handful of free HD-DVD movies through the mail. For the most part, Blu-ray pricing has yet to come down to the same level. It should also be noted that Sony, Hitachi, and Toshiba account for about 60 percent of the optical drive market, according to some statistics.

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