Florida Paper Details WoW Gold Lawsuit

Florida Paper Details WoW Gold Lawsuit

April 6, 2008

South Florida's Sun-Sentinel surveys the legal landscape relating to virtual game goods in a pair of articles from today's edition.

The paper's primary report covers an attempt by World of Warcraft gamer Antonio Hernandez to ban virtual goods peddler IGE from selling WoW gold to players who lack either the time or commitment to earn it for themselves:

The case is thought to be the first of its kind — a lawsuit filed by a player seeking to ban "real money trading" within a virtual world. Hernandez wants a judge to certify the case as a class-action lawsuit, another potential first when it comes to lawsuits involving online role-playing games.

 

"The real significance of this case is, 'What are the rights of the [virtual world] community members when they go online?'" said C. Richard Newsome, Hernandez's attorney.


IGE's attorneys argue that players cannot sue because they have no ownership over WoW's virtual world. Moreover, IGE claims it no longer sells gold in World of Warcraft. 

For his part, Hernandez argues that gold farming operations damage the game's virtual economy, making it harder for players to earn enough gold to compete with those who purchase it from IGE and similar operations:

This loss of time, conservatively, amounts to hundreds of thousands of hours of subscriber time and causes the irreparable harm of driving subscribers away from World of Warcraft. The economic harm incurred by this loss of time is in the millions of dollars.


Hernandez' suit enjoys the blessing - if not the active participation - of WoW publisher Blizzard. Exec Paul Sams told the Sun-Sentinel:

We believe that shutting down gold farming and real-money transfer is in the interest of all World of Warcraft players and that a victory in this case would have a positive long-term effect on the online gaming industry as a whole.


A companion article details three additional virtual property suits.

Comments

Wait...

IGE: "You can't sue me. You don't own anything in this world"

Players: "Neither do you, that's kinda the point. You made money on something you just admitted you don't own. In the REAL world, officials would call that stealing."

IGE: "That's different"

Awesome.
good site!
Interestingly IGE's website is still selling WoW gold, despite their claims.
I wonder how this will turn out.
hmm? http://www.ige.com/wowus/gold/worldofwarcraftus_en.html

What were you saying again IGE? You claim one thing but you do something else.

Also, with all those other games that you guys illegally sell cash in, I wonder how much of a reputation you would have after Arena.Net, CCP, Blizzard, etc etc take you guys apart for illegal activity.
Argh!

"You made money SELLING something you just admitted you don't own."
Fixed.

Curse my eagerness...
I'm just gonna sit here, far away from WoW, and lawl at the whole situation. Hardcore WoW gamers sure crack me up.
He's probably overblowing the impact RMT has had on players, by a bit, but he is right about its effects. Gold farmers infuse the market with unnaturally large ammounts of gold (imagine the effect on the economy if the US Mint just printed an extra billion dollars and shoved it out of trucks in neighborhoods). Gold buyers have tons of money they didn't earn, which they then spend with reckless abandon. They pay premium prices for items at the AH. Other people selling items at the AH see things selling at insane prices, and raise their prices to match. Which the Gold buyers gladly pay. Those people, now fat off their profits, turn around and spend it on other overpriced junk. The market continues to inflate.

Not a big deal for most endgame players, but the effect trickles down, and makes "life" hard for low level players that find themselves not able to buy anything at the AH with the meager earnings they get from killing mobs on their own.

The biggest irony is, the ingame economy would have inflated on its own eventually. Gold comes from nowhere, an endless supply dropped by mobs that continuously respawn. And while there are things like repair costs, food/drink, and epic mounts to take the money back out of the system, it isn't enough to balance it out. RMT only speeds up the problem, it doesn't create it.
Are'el, I don't think so. I have been playing BS for a while, and I had no problem gathering Iron, Copper, Mithril, but when it comes to the stuff Gold Farmers use like Thorium and Fel Iron it's damn near impossible, always one of their agents is getting to my viens first.
I wonder why Blizzard themselves aren't suing, I mean I don't know much about the law in the case but if a normal player has a chance wouldn't this be a definite win for Blizzard? i'm pretty sure this breaks the end-user agreement or something.
Doesn't the best stuff in the endgame come from raid encounters and earning honor points in battlegrounds and so on? I agree with Are'el -- if there was a hard monetary cap on the WoW economy, the situation would be different, but as there's no limit to how much virtual gold gets pumped into the system, they're effectively working with perpetual inflation.

Actually, it reminds me of Zimbabwe.
I'll be honest, I never would have expected something like that to be slashdotted.
......Wrong Topic, sorry.

On Topic post.
@Freak

They may not think its worth the time or their lawyers said it was a dead end lawsuit.
This is only a problem in the first place because Blizzard has been reticent to embrace RMT for their own purposes. By pushing the market for gold into the hands of third parties, not only are they failing to embrace a potential new (and proven successful) revenue stream, they're also encouraging the belittling of a significant portion of their subscriber base, those casual players that cannot invest a competitive amount of time into the development of their character as the more hardcore users.
I hate to say it, but IGE is right.

They player can't sue, because he doesn't own it.

Blizzard does. Blizzard needs to sue, not the player. The player won't win.
Depends if he is suing for personal damages, or against the practice himself.

Ironically enough, with the legal system the way it is now, he might be better off suing Blizzard for failing to take appropriate action to stop this sort of thing, after all, the 'A' in EULA stands for agreement, which means that it is a deal between both sides of the party, if you agree not to farm Gold, then Blizzard are agreeing that you should not have to suffer for the actions of Gold Farmers, if you keep up your end of the deal, then Blizzard might well be liable for upholding theirs.
At first I thought the headline read

"Florida Paper Details WoW Golf Lawsuit"

I began thinking
"I didn't know WoW had golf in it or maybe it's over Wow's use at a golf range".

I was dissapointed when I learned what it was really about.
Honestly, I've never heard of anyone buying gold to spend it recklessly. You what what people buy gold for? BoE epics for their raiding characters, Epic Mount training, and that's generally as far as it goes. No one grabs 5000g to spend on copper ore.

The prices aren't being affects by things being bought up at high prices, what sense does that make? When you search for something on the AH, it's usually the lower prices that come up, I doubt too many people see Netherweave cloth stacks at 3g and think, "Hmm, I have 5k gold, where's the 4g stacks?". The only thing messing with prices in WoW are greedy idiots jacking up the prices of things that aren't often farmed. Which is why things like Thorium and Mithril Ore are barely around, but still cost anywhere from 15-30 gold a stack.

Plus stopping IGE from selling gold won't affect anything, their customers will move to other places then, it just means the supplier of gold will change.
Hey, if it's that bad, stop playing. I personally don't have the time to keep up with the addicts I find online in any game now. Why should I be punished for having a life? I don't play WoW because I want to keep my soul, but when it takes hundreds of hours to unlock ANYTHING in a game, it's getting a little ridiculous.

I haven't played any MMOs since Runescape was completely free, but even from that I have experience with players with too much time.

I say that if you have enough time to get all that gold for free (minus your monthly fee), more power to you. Why should we punish players with the opposite, more money than time? MMOs are the second biggest scam in the video gaming industry (next to X-Box Live, where you get to buy maps that are otherwise free on the PC), so if have the power to beat the system, and you actually want to pay real money for fake money, go for it.
I thought buying WOW gold was a quick way to get banned? An in-game transfer of 1000's or even 100's of Gold at once is sure to set off some flags.

Perhaps there is an opportunity for money laundering in WOW?
One thought pops into my head reading this, um...doesn't this guy think that if Blizzard could ban gold farmers, they would??

What I can't understand, is that if Blizzard really was interested in shutting down gold farming, why don't they just go into it themselves? If you want some gold, you'd pretty much have to be completely out of your mind to not buy it from Blizzard. All the crazy fly-by-night web sites would lose their buyers overnight.
Jesus Christ, this is absurd. MMO players need to get a damn life already.
Ha ha, how can you have a "virtual economy" when money literally materializes out of nothingness all the damn time? I sure am glad that real games don't work like that.
@kaemmerite

According to the GOP that's how the real world economy works. When you need more money you just ask China.
I'm just going to claim "frivilous lawsuit" on this one and walk away.....
Wait, if Blizzard is interested in a win.. Why can't they just do something about it as the developer. They're the only one that owns a real product here. Can't they just add a "Report Money for Gold" button? Especially if they're interested in it going away.
A question for the lawyers/political types out there:

If Antonio Hernandez wins his lawsuit against IGE and the judge rules that IGE caused "economic harm....in the millions of dollars" does this now pave a way for government regulation and taxation of virtual property since a court of law has put essentially a monetary value of WOW gold hold that companies can be held liable for such loss?
See, I see this differently then some of the players here. I was a WoW player for a while, on both PvP and on PvE, and gold farming hurts the game play on both. Now some of you will be going "Wah wah, he annoying me in teh game! Waaaah!" in parody of the slighted player, but keep in mind you are talking about a game that people pay $144 annually to play, for each account, and some people have multiple accounts (especially if your spouce plays).

In PvE, the effect you have is a group of players monopolizing certain resources. Think of it similar to a hurricane relief effort handing out food, and someone pays a group of people to stand in line over and over to collect all the food, then opens a tent selling the food. Since food isn't as important as water, some people are saying, "Stop bellyaching, it's just capatilism at work. It's not as if they are doing it with water!"

Next, imagine our economy if a 10% of the people got machines that could create gold. Suddenly, the value of gold would go down the tube. Of course they would be illegal, and your money would be taken away if caught with it, but people would still do it. Suddenly, that car you need to get to work costs $75,000, and they don't mind charging that much because they know that people are able to get that much money, as long as they don't mind breaking the law.

Now, on PvP servers, things are worse, because they aren't just selling food after the huricane relief, they are selling uzi's. What's the matter? Can't keep your food because people keep shooting at you? No problem, buy an uzi, too? Except they now cost $120,000 for an uzi since the economy is screwed (I'm assuming uzi's don't cost this much normally).

So you are paying for this game, but even pumping money into it isn't enough, you can't keep up with everyone who is breaking the licencing agreement. You loose time that you paid for every time someone with an epic this or that walks by you and decides to gank you. You can't get the drops you need for your quests because people are bot farming the mobs you need.

And none of this even touches the illegal side of gold farming, such as the stolen accounts to get gold to sell, accounts created with stoen credit card numbers to run bot farms, etc...

"Well, if you don't like the game, stop playing!" But I DO like the game, I don't like the people CHEATING at the game that is ruinging my moneys worth. It's like people talking loudly on their cell phone in the theater, I don't hear people justifying it by saying "They paid money to be in here just like you did, if they want to spend it on their cell phone, why not? It's a free country!"

So yes, I feel that botters and gold farmers should be stripped of virtual posetions, kicked, banned, their web addresses and all itinerations of their addresses be filtered from the chats, and even up to and including IP blocks banned.
"....IGE claims it no longer sells gold in World of Warcraft. "

I would like to call BS on this statement. While doing my shattered sun dailies yesterday, I recieved five whispers from gold sellers advertising for IGE. Can't IGE be nailed for lying in court for this statement?

I have no respect for those who bot or farm gold for the purpose of selling it to other players. The whole claim of "They are only helping the casual player keep up with everyone else" is BS. They are helping the lazy people who want to be up there with the best but don't want to put in the time or effort to do so. I seriously think Blizzard should back this guy up and sue IGE for using their product to make money. Isn't gold selling against the TOS anyway?
"If Antonio Hernandez wins his lawsuit against IGE and the judge rules that IGE caused “economic harm….in the millions of dollars” does this now pave a way for government regulation and taxation of virtual property since a court of law has put essentially a monetary value of WOW gold hold that companies can be held liable for such loss? "

That's one thing I am afraid of. Should I have to pay taxes on the gold I took the time to earn just because some farmers and slackers took an easy way out? Will I be paying a 'flight' tax because I have an epic mount?

Ugh, I play the game to have fun, not worry about taxes. -_-
Besides, as I think I mentioned in the last gold-farming article, you don't want things to get to the stage that Eve Online is now at, where, if CCP found a way of blocking Macro-Miners, then there would be a game-wide shortage of fuel for Player Owned Stations and the economy would most likely collapse.
Cheaters suck monkey balls. Don't be a cheater other wise you suck monkey balls. That is all I have to say.
It is probably true that the availability of "farmed" gold inflates prices at the auction house. However, what REALLY drives the gold farming industry is the enormous expense of riding training and the purchase of a mount. THAT amount is set by Blizzard and is not affected by the availability of gold on the internet.

In fact, one could make the argument that gold farming HELPS Blizzard by making it possible for the casual player to buy a mount at level 40. 100 g is $5 or $10 from a farming site, but how many hundreds of hours of game play? And that's just too much online time for casual players, who probably make up a significant percentage of the subscribers to Blizzard. And if those casual players get frustrated because they can't afford a mount and quit, Blizzard is out their $15/month.

So, if Blizzard really wanted to cut into the gold farming market, they would make mounts much cheaper. If the total cost of the mount were, say, 20 g, then even casual fans could save up for one. They would be much less likely to turn to farmers, because they wouldn't need to, and then the prices at the AH would deflate.

Don't sue the farmers; petition Blizzard to lower the prices of mounts.
Who cares if people sell or buy gold, it does nothing to the economy in game. Blizzard has changed their model for making gold in game. Players really don't need to buy gold anymore. Hell i have over 20k gold in game and nothing to spend it on. In the original game gold was hard to get but not anymore, look at the prices on IGE 5000 g for 200 bucks. 2 years ago 5000g would have been over a thousand real dollars. Blizzard is basically taking away gold as a commodity since its so easy to get now.
Most of you people are completely clueless. This is all based around the economics of time. In the real world as well as the virtual world, money = time. IGN isn't selling gold, they're selling you the time they spent collecting the gold. and Blizzard isn't going to do anything, cause they're earning lots of money from these guys farming.
Well.. Blizzard should be suing those bitches, not some random consumer. That's lame. Why doesn't Blizzard care about the economic damage from these gold resellers?? I don't see any of them getting sued, even though they ought to be...
They don't care because it feeds their players. The hardcore raiders with any sort of progression buy gold. Bottom line.
This is absolutely stupid that there is even a lawsuit about this. It sounds like this kid is trying to take his whining in game to a whole new level by trying to have something like this go through. Everybody that reads this knows that if someone offered you $50 for 1000g in game you would do it for sure. IGE and the countless other websites out there like them selling in game gold have just capitalized on selling a product which no one really owns but Blizzard. Personally I feel that if someone is dumb enough to pay you for gold and items, then let them its a waste of their money for something which is available to them in game anyways. So the economy in the game goes up so what?!?! The vendor prices dont go up, and you arent paying ridicious amounts of Gold to get the items that you need. Go out and quest, or PvP if you want the best gear, and let people pay what they want on the AH.

If anyone has the right to bring up a lawsuit it is Blizzard and no one else. They have the say on what goes on in the WoW. While they are always trying to make changes and make WoW better, will it honestly help all that much if you take Gold and Item re-sellers off the market? So AH prices go down, and you have to farm more to get your mounts and skills. To me that isnt really much of an impact of the overall gameplay. The Final words. BIG DEAL!
Just an FYI for those who weren't tuned into the earlier lawsuit blizzard filed against another gold farming company. It wasn't because they were selling their gold, it was because they were spamming tells and in trade chat and in general chat and in say and in whispers and... ect ect. They won their suit against Peons4Hire by the way.

Here's the link (I dunno if I can post links in here GP):

www.wowinsider.com/2008/02/01/blizzard-puts-peons4hire-out-of-work/
I play this game on a regular basis. Making gold is so easy that I've never even thought about buying it. I laugh at people that do. If you stop being lazy and play the game you make money. Enough even to buy the high end items at "end game status". Between the professions you have to chose from or just gathering materials. Most players are lazy and just want to chat or fight against other people. (Which will make you NO money) People just need to go do the "work" of the game or if your that lazy or just want to be a high end player from the begining go buy your gold or characters for that matter. Anyway who cares if people do buy it? It has never affected my experience with these "gold farmers" that run around.
IGE is right.

They player can’t sue, because he doesn’t own it.
Joe Blow Says:
April 7th, 2008 at 4:34 pm

Most of you people are completely clueless. This is all based around the economics of time. In the real world as well as the virtual world, money = time. IGN isn’t selling gold, they’re selling you the time they spent collecting the gold. and Blizzard isn’t going to do anything, cause they’re earning lots of money from these guys farming.
__________________________________________________________

Unfortunately, this is exactly how they've been getting away with this stuff in all mmo's for so long - they claim they are charging you for the TIME spent collecting the gold, not the gold itself. Two things put the lie to this: The in-game advertisements stating in no uncertain terms you can buy gold, not "pay us to earn gold for you," and the fact that some people earn gold faster than others - so it should be sold in increments of time, not increments of gold if this claim is true.
Re: Florida Paper Details WoW Gold Lawsuit

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