A straightforward case of copyright infringement and contractual breachesThe court referred to a long-list of public Reddit screenshots. From Williams describing himself as a ‘pirate’ that refused to ‘give Nintendo $50 for a game’ to more direct posts that crowdsourced pirated games (e.g. ‘donated’ videogames or Nintendo eShop Gift cards used to purchase video games for pirated copies), the court found that Nintendo had properly pleaded claims relating to infringement of at least one exclusive right granted to copyright holders. This was also supported by posts that detailed Williams’ offer of technical advice and encouragement to users regarding the online shops, downloading and installing circumvention software, and playing pirated copies. The court also agreed with Nintendo that Williams’ posts that explained that the related Github account was ‘DCMA-d’ requiring mirroring to a ‘Russian only fans scraper’ amounted to wilful copyright infringement.
Regarding the claim for contributory copyright infringement, the court found that this was properly pleaded. The claims outlined that Williams’ promotion of the online shops offering pirated games and circumvention software, encouragement to ‘donate’, and assistance in distributing the pirated games occurred despite his knowledge that these activities infringed copyright law. By extension, the court found that the same activity infringed the prohibition against circumvention and trafficking in circumvention devices under the DMCA.
As Williams had entered into an end-user licensing agreement (EULA) with Nintendo based on the console, the above activity also breached the clauses that prohibits distribution of unauthorised copies and the circumvention of any of the protections of the Nintendo Switch console. Nintendo argued that this caused them to lose profits from Williams and from the online shop users and damaged Nintendo’s intellectual property. Again, these finding supported the claim that despite Williams’ knowledge of these clauses, he encouraged and induced other Nintendo Switch users to use circumvent software to access pirate shops and the pirated games to play them. This resulted in a claim for tortious interference with a contractual relationship or business expectancy. As a result, Nintendo alleged that it suffered loss and decreased profits from those accounts terminated for breach of their EULAs.
The big question – how much is reasonable?
First the court explained that a default judgment requires considering the amount of money at stake in relation to the seriousness of the defendant's conduct (
Eitel). The recovery sought must be proportional to the harm caused by the defendant’s conduct (
PepsiCo). Nintendo argued that $4.5 million is reasonable because it reflects the $150,000 maximum statutory damage amount for a willful copyright violation for each of the 30 games listed. Although Williams’ refusal to participate in the lawsuit impeded discovery, Nintendo alleged that ‘it is indisputable that such an amount would be large’ as Williams helped distribute ‘thousands, if not hundreds of thousands, of unauthorised copies’. In what they termed ‘a gesture of reasonableness’, Nintendo explained that they only sought damages related to the 30 games listed, did not seek statutory damages under the DMCA and did not pursue attorney’s fees.
As the claims were properly pleaded, the court found that a default judgment was warranted. This left the question of statutory damages for willful copyright infringement. The court outlined that a court must consider the infringer’s profits and the expenses they saved because of infringement, the plaintiff’s lost revenues, the strong public interest in ensuring the integrity of copyright laws, and whether the infringer acted willfully. The court agreed with Nintendo, that given the discussion above, $4.5 million was appropriate.
Lastly the court granted a permanent injunction which required Williams to immediately disable access to all online shops that he operated that offered the pirated videogames and any associated online platform accounts used to distribute illegal copies of games or circumvention devices. As above, reasonableness is a factor and it was significant that Williams refused to cease conduct upon notification by Nintendo and was aware of at least one online shop being infringing given his posts about being ‘DMCA-d’. Williams’ refusal to participate in the lawsuit and attempts to remove evidence tipped the balance in favour of Nintendo especially given the ongoing hardship related to the covert and widespread nature of the infringement. This also challenged the goal of the Copyright Act to promote creativity for the public good as it would disincentivise creators to develop new works.
Comment
Although Williams referred to ‘game dumping’ in one of his Reddit posts – where users decrypt and extract files from videogames for preservation purposes – Williams’ conduct was far more egregious. It also seemed to have broken
a long-standing rule within Reddit communities that ‘you should never, ever, ever try to make money through piracy’. Putting the questionable moral compass of Williams aside, this case confirms as much by granting eye-watering statutory damages that the average person would be unable to pay in their lifetime.
While Williams’ conduct was clearly infringing, the wider modding community operates within a fuzzier legal space. As the way we access and play games increasingly changes, how copyright and contract law set this relationship is significant. Only this year the Internationale Computerspielesammlung, that
housed ‘the world's largest publicly accessible video game archive’, is being ‘wound down’ after the German government declined future funding bids. It comes at a time where Sony has
decided to ‘cease physical game disc production’ from January 2028; likely with severe ramifications for ownership, accessibility and culture.
As one reporter
noted, Williams received his repaired Nintendo Switch two days before the cease and desist letter arrived. Perhaps he should have stuck to playing it and not boasting about his pirated games empire on Reddit.
Paraphrasing SouljaBoy, ‘What is Nintendo going to do, sue me?: Yes, of course they will.