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Jason Chong

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Dec 1, 2001, 3:21:46 AM12/1/01
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From Straits Times of Singapore
1st December 2001

Cyber cafes protest over higher game copyright fees

Local game distributor wants cafes to pay for commercial usage of
software, but cafe owners say firm doesn't have a legal claim

By Reme Ahmad
IN KUALA LUMPUR

PLAYING computer games in Malaysia's 9,000 cyber cafes will cost more
now that a local software distributor is demanding higher copyright
fees on behalf of American game companies.

The distributor, AdSpace Media Sdn Bhd, says it has licensee rights
from 13 international game publishers.

As the cafes are commercial operations, AdSpace is asking them to pay
for the commercial usage of copyrighted games and to refrain from
buying home-use versions.

The commercial versions of the computer software cost at least 50 per
cent more than those bought for personal use.

The hottest game on the cyber cafe circuit is Half-Life
Counter-Strike, an anti-terrorist shooting game.

Counter-Strike is one of the main bones of contention between the
parties as AdSpace claims licensee rights over it.

The group of cyber cafe owners that oppose AdSpace are questioning its
legal right to represent the software publishers, as the company is
considered new to the game market.

They also said AdSpace gave them too short a notice to comply with its
demands. They are angry over its tactics of calling the police to raid
two cyber cafes recently.

'We are still not satisfied that they have the proof to claim
commercial copyrights,' said Mr Lee Boon Kok, chairman of the
information technology unit of the federal Malaysian Chinese
Association (MCA).

'It is felt that even if they have the copyright, a high-handed
approach is not the way to go. The cyber cafes are your potential
customers,' he told The Straits Times.

Mr Lee said his MCA unit became involved after being approached by
cafe owners.

The Malaysian Cyber Centre Chamber of Commerce, or Depsima, said its
members were already using legal software bought from the market.

Members are worried about the rising cost of operations if they have
to pay more for games.

Depsima president Zaini Noordin said chamber members also needed time
to verify the licensee claims.

But AdSpace said the cyber cafes were given 'ample time' to comply as
they had known about the impending move since July 1.

Mr Calvin Ng, AdSpace's vice-president, said a number of cyber cafes
in Perak and Terengganu had agreed to comply with the company's
requirements. 'We will continue with the police raids to enforce
this,' he told The Straits Times.

'It is just that Depsima and Mr Lee Boon Kok have been causing hoo-ha
in the industry.'

Mr Ng complained of a recent news conference held by Depsima and
attended by Mr Lee in which representatives of AdSpace were barred
from entering.

Both sides have since engaged lawyers to help settle the issue.

http://straitstimes.asia1.com.sg/


----------------------------------------------------


My personal comment. As I've some involvement in game dev industry I
would like to throw my support behind AdSpace. ;-)

It's been far too long that people pirate games and there're absolutely
no enforcement at all. These cybercafe punks are just bitching because
they've been getting freebies for too long.

Some have contacted developers to debunk AdSpace's claim of
representation but I would like to debunk these cybercafe owners in
that, game developers DO NOT DECIDE who gets appointed to represent
the products. It's their PUBLISHERS who appoint the local
enforcers/distributors and the PUBLISHERS are the ones giving the
distributors the rights. The developers do not necessarily even know
who their distributors/enforcers are in each country that supposedly
market their games so the cybercafe owner's arguments are nonsense
(what I read in some papers).

And furthermore, it is normal practice in USA to charge higher fees for
software/games used for business purposes instead of personal.

If these cybercafe owners disagree with their license, then they should
not install the games in the first place. They have no right to complain
just because they've been getting freebies for long long time. Don't
agree, don't use. Don't bitch about people's high prices and all that
lame excuse. After all it's only one-time setup fee and if you can
afford 2-3k per pc and can't afford a few hundred more per pc for the
licensed game for biz, you're a hypocrite and shouldn't be in
the business and game developers should not entertain these cheapskates
people at all.

I am fully behind Ad Space because it's been far too long someone teach
these pirates a lesson over pirating games. Games are software too.
Just because BSA does not represent them does not mean they're OK to
pirate. ;-)

Tom Sloper

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Dec 1, 2001, 5:54:46 PM12/1/01
to
Hello Jason Chong, you wrote:

[quoted from news article]:

>The distributor, AdSpace Media Sdn Bhd, says it has licensee rights
>from 13 international game publishers.
>
>As the cafes are commercial operations, AdSpace is asking them to pay
>for the commercial usage of copyrighted games and to refrain from
>buying home-use versions.
>
>The commercial versions of the computer software cost at least 50 per
>cent more than those bought for personal use.

This makes sense, since the commercial version will be played a lot more. I
imagine that games bought for rental might also cost more than games bought
for keeping permanently in the home. But I don't know for sure.

>Counter-Strike is one of the main bones of contention between the
>parties as AdSpace claims licensee rights over it.

It's easy enough to verify, especially if legal action is taking place.

>The group of cyber cafe owners that oppose AdSpace are questioning its
>legal right to represent the software publishers, as the company is
>considered new to the game market.

Easy enough to verify. Just go to court.

>They also said AdSpace gave them too short a notice to comply with its
>demands. They are angry over its tactics of calling the police to raid
>two cyber cafes recently.

Poor babies! I wonder how much time passed between AdSpace's "cease and
desist" request and the police raids? AND... the fact that the police saw
fit to participate in a raid adds some veracity to AdSpace's claim.

>'We are still not satisfied that they have the proof to claim
>commercial copyrights,' said Mr Lee Boon Kok, chairman of the
>information technology unit of the federal Malaysian Chinese
>Association (MCA).
>
>'It is felt that even if they have the copyright, a high-handed
>approach is not the way to go. The cyber cafes are your potential
>customers,' he told The Straits Times.

FEELINGS? Where do feelings come into play? We're talking about the law,
aren't we?

>Mr Lee said his MCA unit became involved after being approached by
>cafe owners.
>
>The Malaysian Cyber Centre Chamber of Commerce, or Depsima, said its
>members were already using legal software bought from the market.
>
>Members are worried about the rising cost of operations if they have
>to pay more for games.

It's nice that they aren't using pirated copies of the games, but it's
reasonable to expect to have to pay legally mandated costs in the course of
business.

>Depsima president Zaini Noordin said chamber members also needed time
>to verify the licensee claims.

Don't need no stinking time. Just get your lawyers to do their due
"discovery" process, and get ready to go to court. (Note: court costs are
another "cost of doing business.")

>But AdSpace said the cyber cafes were given 'ample time' to comply as
>they had known about the impending move since July 1.

Sounds like plenty of time to me. Five months!!

>Mr Calvin Ng, AdSpace's vice-president, said a number of cyber cafes
>in Perak and Terengganu had agreed to comply with the company's
>requirements. 'We will continue with the police raids to enforce
>this,' he told The Straits Times.
>
>'It is just that Depsima and Mr Lee Boon Kok have been causing hoo-ha
>in the industry.'
>
>Mr Ng complained of a recent news conference held by Depsima and
>attended by Mr Lee in which representatives of AdSpace were barred
>from entering.

OK, now it's the other side's turn: "Poor babies!" Sounds like both sides
have to grow up. If side B calls a press conference, side A does not have a
"right" to present their opposing view AT THAT CONFERENCE. They can hold
their own damn conference.

>Both sides have since engaged lawyers to help settle the issue.
>
>http://straitstimes.asia1.com.sg/

Thanks for including the URL. I appreciate seeing it "strait from the
horse's mouth" (so to speak).

>----------------------------------------------------
>
>
>My personal comment. As I've some involvement in game dev industry I
>would like to throw my support behind AdSpace. ;-)

Hear, hear. If AdSpace has the license, and if the price differential they
request is legal, then I too support AdSpace.

>It's been far too long that people pirate games and there're absolutely
>no enforcement at all. These cybercafe punks are just bitching because
>they've been getting freebies for too long.
>
>Some have contacted developers to debunk AdSpace's claim of
>representation but I would like to debunk these cybercafe owners in
>that, game developers DO NOT DECIDE who gets appointed to represent
>the products. It's their PUBLISHERS who appoint the local
>enforcers/distributors and the PUBLISHERS are the ones giving the
>distributors the rights. The developers do not necessarily even know
>who their distributors/enforcers are in each country that supposedly
>market their games so the cybercafe owner's arguments are nonsense
>(what I read in some papers).

Correct.

>And furthermore, it is normal practice in USA to charge higher fees for
>software/games used for business purposes instead of personal.

Perhaps so. IANAL.

Thanks for sharing the article, Jason! - Tom

Tom Sloper
http://www.sloperama.com/

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