Read Take-Two's GTA IV Lawsuit vs. Chicago Transit Authority

Read Take-Two's GTA IV Lawsuit vs. Chicago Transit Authority

May 12, 2008
As GamePolitics  has previously reported, Take Two Interactive sued the Chicago Transit Authority in U.S. District Court over the CTA's recent decision to pull advertisements for Grand Theft Auto IV from its vehicles and facilities.

GP has obtained a copy of the lawsuit and you can grab it here (43-page pdf). From the complaint:
Take-Two's GTA IV advertisments promote an entirely lawful, mainstream entertainment product enjoyed by millions of Americans...

Defendants [CTA and ad company Titan Outdoor] are state actors. The advertising space that CTA maintains on Chicago's mass transit system is a public forum. CTA and its agents... for years have displayed a wide variety of political and issue-oriented... messages...

The removal of the [GTA IV] advertisments... followed a report by the local Fox News affiliate questioning why CTA allowed advertising for an "M" rated video game in light of a recent wave of violent crimes in Chicago... The Governor of Illinois has previously criticized other games in the Grand Theft Auto series... Neither the recent crimes nor the Governor's personal views on video games permitted CTA or Titan to violate Take-Two's constitutional and contractual rights...

Comments

JackDon'tKnowJack:

Attorneys can be wrong. Furthermore, they're only alleging it is a public forum, not that it is. It's still up in the air.
@Mackenzie:

I'm pretty confident that CTA's Answer will read:

1. Denied.

2. Deined.

3. Denied.

4. Defendant has insufficeint knowledge with which to repsond to Plaintiff's allegations.

5. Denied.

6. Denied.

7. Denied.

Etc., etc., etc.

Ain't that usually how the game gets played?
I was wondering how Take Two was planning on going through with this, and then I saw "contractual" and it all made sense. It sounds like is should be based more on breach of contract instead of a constitutional right, if they wanna win.
Should be interesting to see where this leads, as it blends the state censorship/sponsorship issue.
CTA entered into a contract with T2 to display those banners then did not do it. Therefore T2 has the legal right to sue CTA for breach of contract for the amount of the contract as well as legal fees at the very least.
[...] wrote an interesting post today onHere’s a quick excerptAs GamePolitics  has previously reported, Take Two Interactive sued the Chicago Transit Authority in U.S. District Court over the CTA’s recent decision to pull advertisements for Grand Theft Auto IV from its vehicles and facilities. GP has obtained a copy of the lawsuit and you can grab it here (43-page pdf). From the lawsuit: Take-Two’s GTA IV advertisments promote an entirely lawful, mainstream entertainment product enjoyed by millions of Americans… Defendants [CTA and ad company Titan Outdoor] are state actors. The advertising space that CTA maintains on Chicago’s mass transit system is a public forum. CTA and its agents… for years have displayed a wide variety of political and issue-oriented… messages… The removal of the [GTA IV] advertisments… followed a report by the local Fox News affiliate questioning why CTA allowed advertising for an “M” rated video game in light of a recent wave of violent crimes in Chicago… The Governor of Illinois has previously criticized other […] [...]
all the more publicity for their game!

By the way there are tons of GTA IV bus shelter ads about town here in Lancashire, unfortunately my mobile phone doesn't have a camera in it (still got a black and white Sony CMD-J70, take that capitalism!) I will try and get the pics when I can nick my sisters digicam.

I am trying to get a Niko Bellic bus ad poster to go on my wall next to the Guild wars Nightfall map and the Grim Reaper or above my dartboard, any suggestions as to where to go to acquire such a thing?
Hey T2, when's the next JT lawsuit?
On the count of 1, 2, 3, let's hear from the chorus of voices who
sing "This case isn't about the First Amendment. It's a breach of contract case only." Looks like the $700 per hour attorneys at Debovoise & Plimpton think otherwise.
And throwing in a Equal Protection Clause claim for good measure was smooth, too. Nice move.
@JQuiilty:

True. But if you keep calling your clients' claims wrongly that for too long and you don't get to charge $700 per hour for too long, either. And D&P's been in the game longer than you and I have been on the Earth.
@JQuiilty:

And complaints intiating lawsuits, by definition, do nothing more that make allegations.
It'll be interesting to see the answer.

Wild Speculation: If Take Two wins, there may be a non-zero chance that the district court could decide solely on the contract issue, without addressing the constitutional claims. I'm not sure how frequently that happens in the federal courts, particularly in that district, but I know that it happens in my state with some regularity.

I also wouldn't be surprised at all, given the issues, if this were decided on summary judgment.

Thoughts?
Mackenzie:

Absolutely fit for summary judgment. On all counts. In T2's favor.
SOoo, any bets on how long till JT claims to be working for Chigago on this?
@The Chicago Transit Authority:

Do yourself a favor and put the GTAIV ads back up. Then, see if T2 will accept a pro-rated refund for the time that the ads were down. And then hope and pray that they're satisfied with that resolution and are willing to dismiss their claims against you. 'Cause they got you by the short hairs.
''The removal of the [GTA IV] advertisments… followed a report by the local Fox News affiliate questioning why CTA allowed advertising for an “M” rated video game in light of a recent wave of violent crimes in Chicago… The Governor of Illinois has previously criticized other games in the Grand Theft Auto series… Neither the recent crimes nor the Governor’s personal views on video games permitted CTA or Titan to violate Take-Two’s constitutional and contractual rights…

''


lol im glad some1 is finally taking notice of all the crap, not just the advertisements, but the fact they try and (without ANY evidence) imply crime rates are up because of it!!

Its ustterly disgusting fox get away with it.
@ JackDon'tKnowJack

The way I see it, most responses will be denials based on insufficient information. There will be some admissions, and a few flat-out denials. But where the defendants make the denials is where things get interesting. For example, I think the issue of whether the CTA is providing a public forum (as a legal term) might be an issue, though I'm not sure it will have a huge impact on the end result. This will be one of those flat-out denials.

I also think that a lot of the basic facts won't really be at issue, like the contract. There may be a little scuffle about the allegations that CTA and their agents never communicated with Take Two about removing the ads, but it seems like that'll be pretty easy to resolve.

Overall, I'm reserving most of my predictions until I see the answers. (GP: thanks for making the filings available, and please keep it up!) What would really be fun is if the court decides the case on the pleadings--possible given that most basic facts are probably going to be uncontested. That would at least be a relatively quick resolution--a matter of months depending on how backed up the court's docket is.
@Mackenzie:

It is cool that GP fishes out these filings abnd makes them available, aint it? I certainly appreciate it, too. What with not being able to afford PACER and all.

I can't see a need for protacted tussling on this one. I see that Motion for Summary Judgment getting filed a lot sooner in the process than later. And, if not already obvious, I hope the CTA and Titan get dinged. They fully deserve that.
@McKenzie:

If I was CTA, as to allegations of law cloaked in obstensive factual allegations (e.g., CTA has opened their buses and facilities as a "public forum"), my answer's a flat denial. There's no begging the legal questions with me.
By the way, would the non-law types (if there are any still listening) find it helpful to have a brief, 4-5-paragraph summary of the civil litigation process? I haven't found anything suitably brief online, but I'd be happy to post one on my own site and link to it.
Open and shut breach of contract. The only way CTA could get out of this is if they can prove the advertising broke a law on the Chicago books. For some reason I find it hard to believe that will be the case.
@ JackDon'tKnowJack

I agree, and further, they may have a good claim that it's not a public forum. I don't know much about this area, but I did read the 3d Circuit (?) case (can't recall the name at the moment) against a different transit authority. The court addressed that issue and decided the Transit Authority did not provide a public forum. The plaintiff won anyway. I don't know enough about the CTA in this case or the applicable law to have an opinion about how persuasive it will be to the 2d Circuit. Either way, it'll be interesting.
@Mackenzie:

I was a little confused as to why D&P even raised the "public forum" issue (which, I think, only raises itself when the the issue is one of whether the restriction is a reasonable "time, place, and manner" restriction) as opposed to casting the First Amendment aspect of their case as one of pure "commercial speech," authorities in support of which abound:

"Advertising is indeed protected by the First Amendment of the U.S. Constitution. Advertising or "Commercial speech" enjoys somewhat less First Amendment protection from governmental encroachment than other types of speech. The Federal Trade Commission, for example, may regulate speech that is found to be "deceptive."

Under the landmark U.S. Supreme Court decision, Central Hudson Gas & Electric Corp. v. Public Service Commission of New York, No. 79-565, Supreme Court of the United States, 447 U.S. 557; 100 S. Ct. 2343; 1980 U.S. LEXIS 48; 65 L. Ed. 2d 341; 6 Media L. Rep. 1497; 34 P.U.R.4th 178, June 20, 1980, a state must justify restrictions on truthful, nonmisleading commercial speech by demonstrating that its actions "directly advance" a substantial state interest and are no more extensive than necessary to serve that interest. This is the so-called Central Hudson Test.

Commercial speech now clearly has prominent place in the rights protected by the First Amendment. A 1993 Supreme Court opinion summarized the general principles underlying the protection of commercial speech:

'The commercial market place, like other spheres of our social and cultural life, provides a forum where ideas and information flourish. Some of the ideas and information are vital, some of slight worth. But the general rule is that the speaker and the audience, not the government, assess the value of the information presented. Thus, even a communication that does no more than propose a commercial transaction is entitled to the coverage of the First Amendment.' (Edenfield v. Fane, 123 L. Ed. 2d 543, 113 S. Ct. 1792, 1798 (1993).)

At one time, purely commercial advertisements were considered to be outside the First Amendment's protection. (See Valentine v. Chrestensen, 316 U.S. 52, 54, 86 L. Ed. 1262, 62 S. Ct. 920 (1942). That case, which was overruled, said the Constitution imposes no restraint on the government as to the regulation of "purely commercial advertising".

While the U.S. Supreme Court has often acknowledged this constitutional protection, the Supreme Court's decisions have recognized the "'common sense' distinction between speech proposing a commercial transaction, which occurs in an area traditionally subject to government regulation, and other varieties of speech." (Ohralik v. Ohio State Bar Ass'n, 436 U.S. 447, 455-56, 56 L. Ed. 2d 444, 98 S. Ct. 1912 (1978) (citing Virginia Pharmacy Bd. v. Citizens Consumer Council, 425 U.S. 748, 771 n.24, 48 L. Ed. 2d 346, 96 S. Ct. 1817 (1976)).

These distinctions have led the Court to conclude that "the Constitution . . . affords a lesser protection to commercial speech than to other constitutionally guaranteed expression." U.S. v. Edge Broadcasting Co., 125 L. Ed. 2d 345, 61 U.S.L.W. 4759, 4761 (1993) (citing Board of Trustees v. Fox, 492 U.S. 469, 477, 106 L. Ed. 2d 388, 109 S. Ct. 3028 (1989), Central Hudson Gas & Electric Corp. v. Public Service Com., 447 U.S. 557, 563, 65 L. Ed. 2d 341, 100 S. Ct. 2343 (1980), and Ohralik, 436 U.S. at 456)).

In Central Hudson, the Supreme Court set out the important four-part test for assessing government restrictions on commercial speech:

'[First] . . . [the commercial speech] at least must concern lawful activity and not be misleading. Next, we ask whether the asserted governmental interest is substantial. If both inquiries yield positive answers, we must determine whether the regulation directly advances the governmental interest asserted, and whether it is not more extensive than is necessary to serve that interest.'

This four-part analysis endured to this day as the constitutional benchmark in commercial speech cases.

In 44 Liquormart, Inc. v. Rhode Island, 517 U.S. 484, the U.S. Supreme Court held that 'the Twenty-first Amendment does not qualify the constitutional prohibition against laws abridging the freedom of speech embodied in the First Amendment. The Twenty-first Amendment, therefore, cannot save Rhode Island's ban on liquor price advertising.'"

Source: www(dot)lawpublish(dot)com/amend1.html
@Mackenzie:

I tried to post a response which I fear got in the spam filter (not sure why it would). If the mods don't let it out the net eventually, I'll try again. The short of it is that I'm confused that D&P would even cast the issue as one of "public forum" and not more clearly sound the issue in "commercial speech." But, hey, it's their client, not mine.
@ MaskedPixelante
Actually they could also go for breach of their first amendment rights since CTA is a state-actor. The government doesnt have the right to deny ad space where it's permitted for others based only on the content of the ads.
@ JackDon'tKnowJack

That's an interesting point. My guess would be that Take Two is going for theories that offer the best legal platform for its case. Also, it may consider commercial speech a non-issue. Commercial speech is somewhat less protected than other speech, so I don't think it helps Take Two, from a rhetorical/persuasive standpoint, to characterize its speech as commercial this early in the case.

Legally, the distinction is only important where the speech is protected as general expression, but not protected as commercial speech. As you point out, however, the speech here probably doesn't fall into that category--it's protected no matter how it's characterized. So I'm not sure it would even be that relevant in this case. If it is, Take Two may have decided to let CTA and Titan be the ones to raise it.

As for the reason for the public forum allegation, I think Take Two is just trying to lay the best foundation it can. I think it may be able to win its First Amendment case without the forum being public, but a public forum makes it a lot easier.

What do you think?
@Mackenzie:

And, of course, CTA's not getting past the Central Hudson test because even if there's room to find that the first, second, and third prongs of that test are met (which is entirely debatable), there's no way the complete banning of the ads can be the least restrictive means of directly furthering whetever substantial interest may be found.
@Mackenzie:

Probably has something to do with the fact that a complaint -- as you're obviously aware -- doesn't have to spell out your legal theories of the case but, rather, must merely raise factual allegations sufficient to withstand a Rule 12(b)(6) Motion (failure to state a claim) and T2 is therefore free to clothe their facts with legal support at a later date (like in their MFSJ). But that may be all the more reason to avoid pre-sageing your legal theories with legal terms like "public forum."

Anyhow, D&P's a well-respected litigation shop. I'd imagine they know full well what they're doing. I hope so. This one's so clearly open and shut that to not win it hands down would be embarrassing.
@ JackDon'tKnowJack

Agreed. And I'll be shocked if this case doesn't settle relatively soon. As much as T2 wants to make a point, I doubt that they'd spend top dollar to follow this thing through to summary judgment just on principle. Of course, they've obviously doing well at the moment, so who knows? And maybe the city will want to fight--the waters muddy when politics get involved.

Fun discussion. I'm glad I decided not to lurk on this one.
@Mackenzie:

When you've got $500 million gross sittin' in your pocket, you can do pretty much whatever you wanna do.
Where is your god now John Bruce? WHERE?













:p
@Mackenzie:

Here's a real good reason to go with the "public forum" argument rather than commercial speech: it dovetails so much more neatly and nicely into their EPC argument and the facts of their case (I'd imagine CTA has let worst-offending advertisers into the forum; the GTAIV ads, I'd imagine, are pretty tepid and tame in comparison to some of the other stuff out there).
Well T2 will win on contract based issues, on equal protection and on freedom of speech. I am not sure about the others, though the judges will likely shy away from stating their decision is based on equal protection or freedom of speech since they usually don't like setting precedents which don't have overwhelming public support... and judge is an elected position...
@JackDon'tKnowJack:

I'm not sure that I understand how the forum's status as "public" or not impacts the equal protection claim.

My understanding is that in order for a forum to be "public" (and thus any restrictions are subject to strict scrutiny), the government must evince an intent to open the forum and dedicate it to expressive activities. Common public fora include city-owned theatres that the public can use to put on a show. I used to live by a park that had a band shell with a stage, that sort of thing. There is at least one federal appellate decision out there that held that advertising on a transit system was not a public forum (though I can't remember the name--it's not an issue I've been professionally involved in), though it may be distinguishable on the facts. So I can see the impact on the substantive First Amend. claim: strict scrutiny versus something less rigorous.

The way I understand the equal protection claim, though, doesn't seem to have anything to do with whether it's a public forum. Again, I haven't explored these claims in depth, but my understanding is that T2 doesn't have to show that CTA permits ads for movies that are "worse" than GTA or its ads (though that may have great persuasive value at trial). Instead, it just has to show that CTA permits substantially similar ads for other media, while refusing this one. Doesn't seem too difficult. But isn't this the same analysis no matter what type of forum we have here? How does the nature of the forum fit into this framework, or am I missing something?

@Shady8x

The judge in this case needn't worry about being elected. This case is in federal district court, and federal judges are appointed for life.
I may be wrong but if the forum is public, then the government is allowed to impose reasonable time, place, and manner restrictions on speakers in the forum. Classic example: the town square is a public forum but the city fathers are free to open it at dawn and close it dusk (time), forbid speakers from standing in pedestrian walkways (place) and forbid the use of electronic ampflication above 80 decibels (manner). All these restrictions reasonably relate to maintaing the town square for the use and enjoyment of all the town's citizens and, hence, are "reasonable time, place, and manner restriction." I don't think the city father's are held to the more difficult to meet "strict scrutiny" standard. But don't quote me on that.

The interplay between the forum's time, place, and maner restrictions and the EPC is that, even if the TPM restrictions are constitutional, they must be applied with equal force to all similarly situated persons who use the forum. The city fathers can't forbid me from using my megaphone dialed up to "10" while the nut-case beside me does the exact same thing. To do so is in violation the EPC.

T2 can therefore make a "two bites at the apple" argument. Even if CTA can somehow justify the GTAIV ad-baning as a valid TPM restriction (most likely based on some kinda "proctecting children from harm" argument, I'm sure T2 can find some other advertiser(s) on the system whose ads are much more likely than their's to cause the very same harm CTA argues that their's would cause. Nice way of hedging your bets, I think.

I could be dead-ass wrong. All this is off the top of my head without a lick of real legal research. But I think it flies.
And you're right, the ads don't have to be "worse," just "similar." But "worse" usually trumps "similar" and therefore makes the argument that more convincing.
Although, now that I think about it, the "protecting children" argument is a loser because that's content-based and a TMP restriction can't be at all content based. Bad analogy.
But, if CTA could do it with a straight face, they should argue that the ban was driven by TMP considerations and not the content of the ads. Get out of strict scrutiny and into TMP somehow. Maybe lead in the ink?
I just think it's funny that Take Two is pissy over someone pulling their ads, yet they scour YouTube for any gameplay videos people make promoting GTAIV (and get their accounts disabled, no less).

So they're NOT ok with not getting their paid advertising down, but they won't accept free ad space? This company is so screwed up.
@PiB

They do that? What a bunch of assholes!
Can someone translate the lawyerspeak into english? Thanks.
@ PiB
Umm, I thought that their problem was with youtube videos of SPOILERS...

Fare as I can tell they weren't the crazy stunt ones like people did for previous GTAs....
The only real constitutional challenge I could see is the idea that they're not mandated to do what they've done. The Chicago Transit Authority isn't a moral authority, after all.

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