Addressing legal issues with the latest technological developments and social media trends.
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Following the DOJ decision reversing its position on the scope of the Wire Act, some states have moved forward with legislation to permit certain forms of intrastate gambling. New Jersey, along with Nevada, have been among the first movers. A recent lawsuit challenges a NJ law that permits wagering at casinos and racetracks on the results of certain collegiate and professional sports or athletic events (the “Sports Gambling Law“).

The complaint was filed on behalf of the NCAA, NBA, NFL, NHL and MLB, alleging that the Sports Gambling Law is illegal under the Professional and Amateur Sports Protection Act, which prohibits certain sports betting, subject to certain exceptions which the Plaintiff alleges do not apply.

This lawsuit is not surprising. Governor Christie anticipated it and acknowledge its likelihood on a May 24, 2012 news conference. We will follow the case and post updates as events unfold.

 

 

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Binary world  A weekly wrap up of interesting news about virtual worlds, virtual goods and other social media.

 

 

 

PokerStars Pays $731M, Acquires Full Tilt In DOJ Settlement
PokerStars will pay a total of $731 million and absorb fellow online gaming site Full Tilt Poker in order to settle the government’s wide-ranging fraud allegations against the poker site, the company said on Tuesday.

FSU focuses on social media, university updates its policies
Florida State administrators want to make sure their student-athletes understand the importance of protecting their brand and the university’s image each time they click into a social-networking page.

UK to Start Legally Enforcing Video Game Ratings
Europe’s PEGI rating system this week became the single system for video game ratings in the United Kingdom. The change means customers shopping for video games in the UK will no longer see the government’s BBFC ratings on titles. Instead, all games will carry a PEGI (Pan-European Game Information) rating designed to help consumers make informed decisions about which games they’re buying.

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Binary world A weekly wrap up of interesting news about virtual worlds, virtual goods and other social media.

 

 

Twitter Drops LinkedIn Partnership

LinkedIn announced via a blog post on Friday that Twitter would no longer be partnering with the business-networking site to sync updates from one site to the other. This ends a partnership that began in 2009. LinkedIn users can still create updates on the site and click a button to share to Twitter as well, but the reverse is no longer possible.

Two Major Gaming Deals Just Went Down

Two pretty major announcements hit the gaming press Friday. And they have the potential to pretty much completely change the gaming industry. First off, Vivendi is selling off its majority stake in Activision Blizzard. It’s unlikely they’re going to find anybody to just buy the whole thing: AB is valued at $13 billion, and there’s a very, very short list of companies who could afford it and who would be interested.

What Sony’s $380M purchase of Gaikai means for future gaming hardware

Sony Computer Entertainment has been known for its iconic PlayStation hardware, including the PS3 console the PlayStation Portable, now called Vita. But does its future lie in proprietary hardware, or in a delivery platform that brings PlayStation games to any connected device? That’s one possible implication of a $380 million acquisition of Gaikai, a Silicon Valley provider of gaming delivered through the cloud.

Health-care apps for smartphones pit FDA against tech industry

Three tries. More than two years. And roughly $150,000. That’s what it took for MIM Software to get the Food and Drug Administration’s clearance for a smartphone application that physicians can use to view MRIs and other medical images.

Xbox Class Sues Microsoft For Blocking Online Access

A California Xbox video game system owner filed a class action in Washington federal court on Friday accusingMicrosoft Corp. of breaching contracts with consumers by blocking access to its Xbox Live online service without issuing refunds for their subscriptions, purchases and credits.

Usher Wants a Virtual You to Dance at His Concert

Pop star Usher is looking for new backup dancers — virtual ones — for his upcoming London concert, which will be live-streamed June 11 from Hammersmith Apollo. Starting Friday, fans can create digital avatars of themselves to win the chance of becoming a choreographed dance square during Usher’s performance of “Scream.” American Express teases the interactive element in the above video, shared first with Mashable.

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MC900250090.jpgA federal court recently found copyright infringement based on a developers copying of aspects of the popular Tetris game, even though the code itself was not copied. This ruling confirms that IP can be used to effectively prevent certain cloning practices that are prevalent with online games. While this case focused on copyright infringement, a passing note by the court highlights how patents can be instrumental to a comprehensive IP strategy as well.

In this case, Tetris sued Xio Interactive Inc. over its game Mino. Mino is a falling block game which incorporates game-play rules similar to Tetris, as well as utilizing a similar playing area and geometric block combinations. In its opinion, the court stated that game developers are free to use others’ ideas, but not the expression of those ideas. The court noted that the idea-expression dichotomy in the video game world is “simple to state- copyright will not protect an idea, only its expression – but difficult to apply, especially in the context of computer programs.”

The court summarized the law by stating generally that game mechanics and rules are not entitled to copyright protection, but courts have found expressive elements copyrightable, including game labels, design of game boards, playing cards and graphical works. Significantly however, the court noted that game mechanics and other functional game features can be patented.

The court determined that Xio did more than just incorporate Tetris‘ underlying rules in Mino. In looking at the similarity of the look and feel of the two games, the court stated that “[t]here is such similarity between the visual expression of Tetris and Mino that it is akin to literal copying” regardless of the fact that Xio did not actually copy the underlying Tetris code.

If you are a game developer and want to maximize your ability to shut down clones, it is critical to have a comprehensive IP strategy that incorporates both patents and copyrights. If you rely just on copyright, a more skillful game cloner can change the expressive elements enough to avoid copyright infringement. But if you patent core mechanics of your novel game, you can prevent others from copying that functionality regardless of how different they make the expressive elements.

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Binary world  A weekly wrap up of interesting news about virtual worlds, virtual goods and other social media.

 

 

 

Mobile Game Fight Goes Global

A turf war is breaking out in the videogame industry and, for once, it has nothing to do with Nintendo, Microsoft and Sony. This fight is taking place on smartphones with names like Gree Inc. and DeNA Co. –a pair of Japanese firms little known in the rest of the world despite being the two most profitable companies in mobile games–taking on Zynga Inc. and potentially Apple Inc. and Google Inc.

Electronic Arts to focus on freemium gaming

Electronic Arts will shift its business away from premium mobile game sales to focus on the freemium model, calling free-to-play titles “the norm” moving forward. “We started to see that freemium was coming in, and it took us a long time to move over,” Electronic Arts Senior Vice President and Group General Manager Nick Earl said in an interview with All Things D. “In all candor, we are behind.”

A Little ‘Like’ Can Mean Big Trouble

Workers of America, be careful what you “like” and post on Facebook. A U.S. district court in Virginia recently found that a sheriff’s office employee “liking” a Facebook page was “insufficient speech to merit constitutional protection.” Several former employees claim they were let go after the sheriff found out about their support for a political rival through a Facebook “like,” among other actions.

YouTube IP Decision Gives 9th Circ. Pause On Veoh Ruling

The Ninth Circuit, which is considering rehearing its finding that Veoh Networks Inc. is shielded from Universal Music Group Inc.’s copyright claims, asked the parties Thursday whether it should adopt the standards set by the Second Circuit in its recent YouTube ruling.

As ‘Gamification’ Trend Grows, Badgeville Banks $25M.

More businesses are embracing the idea of using game techniques-such as awarding status, access and rewards-to influence behavior both inside and outside their enterprises. Betting that this “gamification” trend will continue, investors have poured $25 million into Badgeville at a pre-money valuation well north of $100 million.

Online Activities to be Recorded by UK ISPs, Draft Reveals

If you were scared that your online activity was being tracked and possibly analyzed, let us inform you that you were very much accurate in your suppositions. No, this is not one of those conspiracy theories you hear on the news so often. The United Kingdom online monitoring law just got published showcasing some disturbing facts. The paper is 123 pages long and is actually a draft of the Communications Data Bill.

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MH900422734.JPGThe New Jersey attorney general sued 24 x 7 Digital LLC, a Los Angeles-based developer of applications for mobile devices, for child online privacy violations. The suit alleges that 24 x 7’s kids educational apps collect personal information from children younger than 13 and transmit that information to a third-party without parental notice or consent.

The information includes kid created profiles containing their first and last names and a picture. The app allegedly transmits that information and the unique device identification number associated with the mobile device the child is using. This information is provided to a third party analytics company. A copy of the complaint in (Chiesa v. 24 x 7 Digital LLC, D.N.J., Case No. filed 6/6/12) can be found here: NJ_060612.pdf.

As the frequency of mobile app enforcements increases, it is critical to ensure that you have conducted a proper legal audit of compliance issues with your app to avoid being the next headline. It is important to ensure that you consider how you use and share data with third parties, among other things.

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Binary world  A weekly wrap up of interesting news about virtual worlds, virtual goods and other social media.

 

 

Social network LinkedIn reports stolen passwords

Business social network LinkedIn said Wednesday that some of its users’ passwords have been stolen and leaked onto the Internet. LinkedIn Corp. did not say how many of the more than six million passwords that were distributed online corresponded to LinkedIn accounts. In a blog post Wednesday, the company said it was continuing to investigate.

Ubisoft Wants ‘Assassin’s Creed’ Copyright Claims Offed

Ubisoft Entertainment SA asked a California federal court on Wednesday to kill an author’s allegations that the video game maker’s popular “Assassin’s Creed” infringes a copyrighted novel, saying the writer’s claims cover generic aspects of the stories that can’t be protected.

Android Ruling A Sweeping Win For Open Source Software

A California judge’s ruling Thursday that certain Oracle Corp. Java software cannot be copyrighted is an important vindication for accused infringer Google Inc. and open source software in general, but whether the decision will have broad ramifications for software copyrights remains to be seen, attorneys say.

City introduces private social network for neighborhoods

San Mateo is making Nextdoor, www.nextdoor.com, available to all San Mateo neighborhoods.  Nextdoor, the first private social network for neighborhoods, is designed to foster neighbor-to-neighbor and citywide communication. Starting now, San Mateo residents can use Nextdoor to create private websites for their neighborhoods where they can get to know their neighbors, ask questions and exchange local advice and recommendations. Topics of discussion on Nextdoor are as varied as local events, school activities, plumber and babysitter recommendations, disaster preparedness, recent crime activity, upcoming garage sales or even lost pets.

Smartphones, tablets threatening handheld video games

Smartphones and tablet computers are expanding the market for handheld video games and challenging traditional devices, forcing game developers to adapt to a rapidly changing landscape. Executives at the Electronic Entertainment Expo (E3) held this week in Los Angeles said the industry — long focused on generating blockbuster titles for PlayStation, Wii or Xbox 360 — are taking a new look at portable platforms.

World’s Largest Multi-Stakeholder Virtual Care Community Launched by the Premier Healthcare Alliance

The Premier healthcare alliance’s PremierConnect(TM) technology platform will be at the fingertips of more than 100,000 clinicians, supply chain leaders, hospital executives and other healthcare providers nationwide, allowing them to interact as one in communities of common interest.

Mary Meeker’s Latest Stunning Presentation About the State of the Web

No one in the entire world is as good at summarizing the state of the technology business through slideshow presentations as Kleiner Perkins partner Mary Meeker. She’s about to do it again at the All Things D conference.

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A weekly wrap up of interesting news about virtual worlds, virtual goods and other social media.

 

App Makers’ Privacy Policies Leave Users In The Dark: Panel

Several software developers and privacy advocates at a Federal Trade Commission workshop Wednesday shot down the notion that traditional privacy policies are enough to adequately inform mobile application users of how their information is being collected, stored and used.

Social Media Policies At GM, Target, DISH Network Deemed Unlawful By Labor Official

In an effort to control employees’ activities on Facebook and Twitter, some U.S. companies have instituted social media policies that run afoul of labor law and infringe on workers’ rights, according to a memo issued Wednesday by the general counsel of the National Labor Relations Board.

Social Gaming and Gambling Converging

Maybe the most social of popular casual games is breeding a new competitor in the social gaming space as bwin.party sets its sights on this growing part of the market. The company is more known for poker, a game played with friends around dining room tables around the world, but it has set aside $50 million to develop a new game studio called Win that will develop social games.

The video games you play with your mind

The gaming controller of the future won’t have joysticks or buttons; it’ll wrap around your head. A number of companies like San Jose-based NeuroSky are developing affordable, consumer-ready controllers that takes cues from the electrical signals in a wearer’s brain to dictate onscreen action. Here, a concise guide to the new smart technology.

Social media: Bill would limit employers’ and schools’ access to your Facebook, Twitter account information

The House Energy and Technology Committee on Tuesday took testimony on legislation that would create the Social Network Account Privacy Act. The bill as introduced generally would prohibit employers and schools from requesting that employees and students provide access information related to their social media accounts.

Google Augmented Reality Glasses To Go On Sale Next Year

According to specialists, after the Google Project Glass will hit the market, the manufacturers will start building a wide range of gadgets based on the new technology, from smartphones to tablets featuring transparent displays.

 

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A weekly wrap up of interesting news about virtual worlds, virtual goods and other social media.

 

 

PlayStudios launches myVegas social casino games with MGM

Social casino game startups are the cliché of 2012. Everybody is either starting a new company in this hot market — on the bet that the U.S. will allow online gambling sites again — or spending a lot of money acquiring casino game startups. But PlayStudios believes it is different because it is a blend of Silicon Valley and Las Vegas. The company was founded by Andrew Pascal, a longtime Silicon Valley entrepreneur and former casino empire executive.

American Express launches FarmVille rewards card

American Express has created a card that rewards FarmVille users with virtual cash for their real-world purchases. Users of the hit social media game can begin signing up for the FarmVille card starting Tuesday. The card is part of American Express’ prepaid Serve platform.

[Report] Marketing Goes Local

PwC, together with the Location Based Marketing Association (LBMA), has developed this white paper to educate the industry on location-based marketing and to provide a general overview for retailers, brands and their agents, mobile network operators, and service providers on the application of these services to drive customer engagement and brand awareness.

Gamification market to reach $2.8 billion in 2016

Gamification, the process of applying game mechanics to activities that aren’t games, is rapidly becoming a big business, according to a new report by Wanda Meloni of M2 Research. She projects the market to reach $242 million in 2012 (more than double the 2011 total), and to climb to $2.8 billion in 2016.

Could Virtual Nanotransactions Solve the Mobile Payments Problem?

Very few people in the mobile industry will disagree that mobile payments are today’s biggest challenge for developers. In the Apple universe, there is a strong solution to the problem: Apple simply requires users to register their credit cards before they can use any services. But this approach only works for a very small segment of high end users in the developed world.

 

 

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A weekly wrap up of interesting news about virtual worlds, virtual goods and other social media.

Magid National Study Finds Social Networking Gaming Growth is Slowing

The research, conducted as part of the Magid Media Futures 2012 study, found social network gaming user growth has slowed in the United States. About two in five (38%) social network users, up slightly from 36% in ’11, say they regularly play games on social networks. Social network gaming has decreased among its primary demographic, females age 12-44, with less than 43% of users age 12-17 (down from 54% in 2011) and about 36% of users 25-44 (down from 40% in 2011) reporting playing on a weekly basis.

Internet Gaming On The Horizon For NJ, Lawmaker Says

Internet gaming could be a reality in New Jersey before the end of the year, eventually providing Atlantic City’s casinos with a much-needed influx of revenue, a state senator sponsoring such legislation told a roomful of attorneys Wednesday.

Overexposed? Thanks to SceneTap, San Francisco bars are now profiling you

SceneTap is a maker of cameras that pick up on facial characteristics to determine a person’s approximate age and gender. The company works with venues to install these cameras and track customers. It also makes web and mobile applications that allow random observers to find out, in real-time, the male-to-female ratio, crowd size, and average age of a bar’s patrons. And no one goes unnoticed. “We represent EVERYONE in the venue,” SceneTap proudly proclaims on its website.

Judge: An IP-Address Doesn’t Identify a Person (or BitTorrent Pirate)

A landmark ruling in one of the many mass-BitTorrent lawsuits in the US has delivered a severe blow to a thus far lucrative business. Among other things, New York Judge Gary Brown explains in great detail why an IP-address is not sufficient evidence to identify copyright infringers. According to the Judge this lack of specific evidence means that many alleged BitTorrent pirates have been wrongfully accused by copyright holders.

For Start-Up, Virtual Casinos

Andrew Pascal was one of Steve Wynn‘s trusted lieutenants when the Las Vegas magnate was rebuilding his gambling empire a decade ago. Now the former president of the Wynn Las Vegas and Encore casinos is the chief executive of a Silicon Valley gaming start-up aimed at running virtual casinos.