Federal Judge: Madden Monopoly Suit May Proceed Against EA
Federal Judge: Madden Monopoly Suit May Proceed Against EA
June 8, 2009
A U.S. District Court Judge in San Francisco has ruled that monopoly claims filed against Electronic Arts by a pair of Madden buyers may continue.
EA had previously requested that Judge Vaughn Walker dismiss claims by Geoffrey Pecover and Jeffrey Lawrence. The two Madden buyers, serving as named plaintiffs in the class-action suit, alleged that by eliminating competition for NFL-licensed games EA had acted in a monopolistic fashion and unjustly enriched itself at the expense of consumers. On Friday Judge Walker issued a ruling denying EA's motion. The Judge did, however, rule that only claims in California and Washington, D.C. would go forward since that is where the two named plaintiffs in the case reside.
Significantly, in turning down EA's request to dismiss, Judge Walker wrote that "interactive video football software" is a recognizable product market for anti-trust purposes:
As the court understands these allegations, interactive football software will not sell if it does not use the names, logos and other markers of teams that actually compete in the NFL; there is, in effect, no market for interactive football software in a virtual or fictitious setting. If true —— as the court must at this point accept —— this adequately alleges that there are no substitutes for interactive football software without the markers of actual teams and players.
The suit, essentially following a line of reasoning laid out here on GamePolitics, describes how EA, faced with competition from Take-Two's excellent NFL 2K5, reduced the price of Madden from $49.99 to $29.99 in order to stay competitive with NFL 2K5, which was aggressively priced at $19.99. However, once the exclusive NFL and NFLPA deals were inked, the unlicensed NFL 2K series was discontinued and EA, facing no competition, jacked the price of Madden back up to $49.99.
DOCUMENT DUMP: Grab a copy of Judge Walker's ruling.
SEE ALSO: Spirited courtroom argument in Pecover vs. EA... Read all GamePolitics coverage of Pecover vs. EA...
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Posted 11/07/09 at 04:27pm
ZippyDSMlee: man I got alot of junk and dup files too >< god I need orginization...and no not the knee capping media mafia kind :P
ZippyDSMlee: man I got alot of junk and dup files too >< god I need orginization...and no not the knee capping media mafia kind :P
Posted 11/07/09 at 04:26pm
ZippyDSMlee: replaced :P
ZippyDSMlee: replaced :P
Posted 11/07/09 at 04:23pm
ZippyDSMlee: beemoh:hey its like 60GB porn,400GB anime 100GB games and crap I have took from all my DVDs, I hate waiting on dvds to install stuff..... oh and 40GB of my porn was in the found.000 folder...mostly corrupted.... least I got names of wut needs to be repa
ZippyDSMlee: beemoh:hey its like 60GB porn,400GB anime 100GB games and crap I have took from all my DVDs, I hate waiting on dvds to install stuff..... oh and 40GB of my porn was in the found.000 folder...mostly corrupted.... least I got names of wut needs to be repa
Posted 11/07/09 at 04:18pm
beemoh: @Zip: ...and you'd have to spend all that time re-downloading that porn?
beemoh: @Zip: ...and you'd have to spend all that time re-downloading that porn?
Posted 11/07/09 at 03:34pm
ZippyDSMlee: ggrrrrr......vista lost one of my hard drives and I had a heart attack thinking I lost 1TB of data....
ZippyDSMlee: ggrrrrr......vista lost one of my hard drives and I had a heart attack thinking I lost 1TB of data....
Posted 11/07/09 at 10:58am
JDKJ: Which could be explained by both (a) and (b).
JDKJ: Which could be explained by both (a) and (b).
Posted 11/07/09 at 10:56am
Austin_Lewis: JDKJ: You forgot C) the fact that, for some reason, every time he did something that would suggest he shouldn't be in the military, let alone an officer, higher ups ignored it or let it slide.
Austin_Lewis: JDKJ: You forgot C) the fact that, for some reason, every time he did something that would suggest he shouldn't be in the military, let alone an officer, higher ups ignored it or let it slide.
Posted 11/07/09 at 10:51am
JDKJ: Part of the problem is, I believe, that (a) the Army had a lot of time and money already invested in him and which they were unwilling to simply write-off and (b) an increasing need for the type of skills and services he provided.
JDKJ: Part of the problem is, I believe, that (a) the Army had a lot of time and money already invested in him and which they were unwilling to simply write-off and (b) an increasing need for the type of skills and services he provided.
Posted 11/07/09 at 10:48am
JDKJ: And that even if he was begging not to get cut loose, he was apparently a real good candidate for being cut loose, anyway.
JDKJ: And that even if he was begging not to get cut loose, he was apparently a real good candidate for being cut loose, anyway.
Posted 11/07/09 at 10:11am
JDKJ: @chada: And while Kennedy once noted that there's usually more than enough blame for everyone to get a slice, the possibility that the Army was unwilling to cut loose someone who was asking to get cut loose could be a factor.
JDKJ: @chada: And while Kennedy once noted that there's usually more than enough blame for everyone to get a slice, the possibility that the Army was unwilling to cut loose someone who was asking to get cut loose could be a factor.
Posted 11/07/09 at 10:07am
ZippyDSMlee: *noms on his feet*..nomnomnomnom*droooll* ...wuuutttttt uuu looking at?
ZippyDSMlee: *noms on his feet*..nomnomnomnom*droooll* ...wuuutttttt uuu looking at?
Posted 11/07/09 at 10:05am
JDKJ: I'm no psychologist, but I'm told that crazy people have a tendency to do crazy things.
JDKJ: I'm no psychologist, but I'm told that crazy people have a tendency to do crazy things.
Posted 11/07/09 at 10:03am
chadachada321: Whoops, was out of the convo for awhile. I do wonder what type of ammo he used etc, but the real issue is WHY he did it, not HOW
chadachada321: Whoops, was out of the convo for awhile. I do wonder what type of ammo he used etc, but the real issue is WHY he did it, not HOW
Posted 11/07/09 at 09:56am
JDKJ: But if it turns out that they actually did, they'll have Hell to pay.
JDKJ: But if it turns out that they actually did, they'll have Hell to pay.
Posted 11/07/09 at 09:45am
JDKJ: And I'd tend to rule out the possibilty of FN Herstal supplying restricted ammunition to someone merely because they're ordering it from a military base.
JDKJ: And I'd tend to rule out the possibilty of FN Herstal supplying restricted ammunition to someone merely because they're ordering it from a military base.
Posted 11/07/09 at 09:37am
JDKJ: I know you don't leave your gated community and get around much in dark alleys, so you may be surprised to learn that there's this thing called "the black market" where, if you've got enough money, ain't too much of anything which can't be bought.
JDKJ: I know you don't leave your gated community and get around much in dark alleys, so you may be surprised to learn that there's this thing called "the black market" where, if you've got enough money, ain't too much of anything which can't be bought.
Posted 11/07/09 at 09:36am
Austin_Lewis: Or, maybe he or someone else at the base ordered the SS190 from FN Herstal.
Austin_Lewis: Or, maybe he or someone else at the base ordered the SS190 from FN Herstal.
Posted 11/07/09 at 09:32am
Austin_Lewis: the hands of private owners. They run about 300 dollars minimum for a box of 50, and boxes of AP 5.7 are extremely scarce, mainly residing in the hands of Class III stores or individuals who for one reason or another got a demo box of it.
Austin_Lewis: the hands of private owners. They run about 300 dollars minimum for a box of 50, and boxes of AP 5.7 are extremely scarce, mainly residing in the hands of Class III stores or individuals who for one reason or another got a demo box of it.
Posted 11/07/09 at 09:30am
Austin_Lewis: There are other firearms that fire the 5.7. However, I too would like to know where he got the ammo and what kind was used. Maybe Hasan, planning not to live through this, went out and bought one the boxes of SS190 that are floating around in
Austin_Lewis: There are other firearms that fire the 5.7. However, I too would like to know where he got the ammo and what kind was used. Maybe Hasan, planning not to live through this, went out and bought one the boxes of SS190 that are floating around in
Posted 11/07/09 at 08:44am
JDKJ: And it isn't yet clear what type of ammunition Hasan used. It's strange that he purchased a gun but didn't purchase ammunition for it at the same place and time. Especially because the calibre required is peculiar to the actual gun.
JDKJ: And it isn't yet clear what type of ammunition Hasan used. It's strange that he purchased a gun but didn't purchase ammunition for it at the same place and time. Especially because the calibre required is peculiar to the actual gun.
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Comments
$50 is still cheap for a current gen game though.
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It's not necessarily about the prices, it's about consumers wanting choice, and right now, there is little choice. Sure a footbal lgame without official palyers and teams can be made, and it hasb een ,but it sold horribly for not having the liscense, as that's what people want. People used to have a choice, but now don't, and EA is reaping the benefits.
And EA deserves it for their stunt in tying ot acquire Take Two to get at 2k sports. Would have only been a matter of time before they went after Sega to get their sports devision.
Yeah, its about choice and quality of game. EA makes crap games when they know they dont have to try. Hell, just look at Sims 3, taking out important basic features of Sims 2 just to turn around and sell them back to people later in expansion packs, just because they know people will pay. Part of it is smart business, but another part is just raping consumers because you know you wont try hard enough to produce anything of value worth buying other than those old features coming back.
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Mhm, as I said below, no competition means no incentive to offer up a better product.
Whenever it's something bad about a game it's always EA. Whenever it something good about the game it's always Maxis.
As opposed to EA who would prefer everyone to forget it's a Maxis game at all.
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I LIKE the fence. I get 2 groups to laugh at then.
I'm pretty sure they acknoledged Bioware as Bioware at E3, and didn't go like "EA is making Mass Effect 2!"
That's a matter of opinion...
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Papa Midnight
http://www.thesupersoldiers.com
This explains why competition almost always works in favor of the consumer.
When there is competition, companies try to undercut one another and the consumer can go for a better price if they so choose.
Without competition, the company can charge whatever they want, and if you want to enjoy the product you gotta pay the price they ask.
Not to mention that without the competition from 2K sports EA has absolutely no reason whatsoever to offer up a better Madden every year. They could change one or two faces or one or two teams i nexistign game data, re-release it, andn o one has a choice but to get it if they wnat an official footbal lgame.
I may as well make an Australian Rules Football game that only uses the clubs emblem. Not their city names.
Cats, Dogs, Crows, Magpies, Blues, Eagles, Kangaroos and so on. Using fake players with fake names. As long as the game plays well like International Superstar Soccer 64 did for world football games it will be ok.
I would rather be doing that instead of being stuck in legal fees because I wanted to use real players and real legendary names to sell a Football game.
I don't know about Australian Rules football, but an American football game like you propose (fake players, no city names, just the club emblems) would still fall foul of EAs monopoly. Specifically, the club emblems are registered trademarks, and can't be used to sell a product without the owners' permission (which is, for the time being, granted to EA exclusively with regard to games).
Holy poop!!!
As an avid fan of 2K5 back in the day and tired of the sthick that was Madden year in and year out (not to mention a fan of competition), I am exicted for the prospects of this suit.
Perhaps 2K sports will live again, or someone else will come forward to challenge and overthrow that which has put video game football in stagnation.
A much as I think that there should be more than one title, I think that corporations also have the right to have exclusive partnerships. I mean, if Fox, ABC, NBC, ESPN, or CBS decides to sign a contract with the NFL to exclusively show the Super Bowl for the next 5-7 years, I don't think that Fox, ABC, NBC, ESPN, or CBS should have the right to sue whoever has the exclusive rights just because they want to show it.
Exclusivity can be a good thing and it can be a bad thing. I think that the Madden and NFL exclusitivity is a bad thing but I don't like the precendent that this lawsuit could set.
http://www.deathvanquished.com
The problem with your analogy is that it is fallicious. The super bowl is a single event. If one of those stations were the only ones allowed to cover every single game of the NFL season, then your analogy would be proper.
My point was that companies should be able to get into exclusive deals. They may be bad for the consumer but it is well within their right. The release of Madden is a one time even but if I must change my analogy then it is well within the NFL's right to put all of its content on the NFL Network. Yes, it would be bad for the consumer and all of the flak with the NFL Network is that not every affiliate has access to it and most cable companies argue if it should be a basic or premium channel. The NFL would pretty much destroy themselves if they did it, but it is well in their right as a company to do so.
http://www.deathvanquished.com
"They may be bad for the consumer but it is well within their right"
No they aren't. This is why they are being (somewhat successfully) sued left right and centre. If they are within their rights, then why are there monopoly and anti-trust laws?
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I LIKE the fence. I get 2 groups to laugh at then.
As a matter of pure antitrust law, there's nothing wrong with exclusive contracting. Copyright holders license their products on an exclusive basis all the time. Exclusivity ceates market benefits for the licensee for which they've usually paid a whopping premium to the licensor. And that's all well and good. What the antitrust laws are intended to combat, in part, is monopoly market share (i.e., the ability to control supply and therefore set prices). Holding exclusive rights may help the monopolizer gain monopolistic market share but the mere fact of exclusivity isn't illegal - in fact, it's protected by copyright and other intellectual property law. It's the ability to circumvent the market forces of supply and demand in setting prices which shafts the consumer and is therefore illegal.
Well i wish thses two good luck, we do need some more competiction in sport games.
http://www.magicinkgaming.com/