Piracy

ROM Site Owner Made $30,000 a Year -- Now Owes Nintendo $2.1 Million (arstechnica.com) 132

An anonymous reader quotes a report from Ars Technica: The now-unemployed owner of a shuttered ROM distribution site has been ordered to pay $2.1 million in damages to Nintendo after trying and failing to defend himself in the case. In September 2019, Nintendo filed a lawsuit against Los Angeles resident Matthew Storman over his operation of RomUniverse.com, which offered prominent downloads of "Nintendo Switch Scene Roms" and other copyrighted game files. At the time, Nintendo said that the site had been "among the most visited and notorious online hubs for pirated Nintendo video games" for "over a decade."
[...]
In providing summary judgment for Nintendo (as noted by Torrent Freak), the judge suggested that this was a clear case of infringement, one in which "there is no genuine issue of material fact that Plaintiff owns the copyrighted works and Defendant copied the works." While Nintendo sought $4.41 million in copyright damages -- or $90,000 each for 49 games -- the judge lowered the amount to $1.715 million ($35,000 per work). That amount should be sufficient to "compensate Plaintiff for its lost revenue and deter Defendant who is currently unemployed and has already shut down the website," the judge wrote. The judge also awarded an additional $400,000 for RomUniverse's use of Nintendo's trademarked box art, down from a massive $11.2 million ask. But Storman avoided a permanent injunction on "future infringement," with the judge suggesting that there was no "irreparable harm" given the monetary damages and the fact that the site had already been shuttered.
Storman invoked the "safe harbor" protections of the Digital Millennium Copyright Act (DMCA), but Nintendo got him to admit that he had uploaded Nintendo's copyrighted ROM files himself. "Another attempted Storman defense based on the 'first sale doctrine' also failed to go anywhere, since the site was distributing copies rather than Storman's personal property," adds Ars.
Businesses

Amazon Faced 75,000 Arbitration Demands. Now It Says: Fine, Sue Us (wsj.com) 37

Companies have spent more than a decade forcing employees and customers to resolve disputes outside the traditional court system, using secretive arbitration proceedings that typically don't allow plaintiffs to team up and extract big-money payments akin to a class action. Now, Amazon is bucking that trend. From a report: With no announcement, the company recently changed its terms of service to allow customers to file lawsuits. Already, it faces at least three proposed class actions, including one brought May 18 alleging the company's Alexa-powered Echo devices recorded people without permission.

The retail giant made the change after plaintiffs' lawyers flooded Amazon with more than 75,000 individual arbitration demands on behalf of Echo users. That move triggered a bill for tens of millions of dollars in filing fees, according to lawyers involved, payable by Amazon under its own policies. Amazon's decision to drop its arbitration requirement is the starkest example yet of how companies are responding to plaintiffs' lawyers pushing the arbitration system to its limits. Arbitration agreements are buried in the contracts consumers sign to do everything from buying a cellphone to using a ride-hailing app. Many employers also require arbitration for adjudicating issues like pay disputes or discrimination claims. The U.S. Supreme Court has repeatedly upheld and strengthened the rights of companies to mandate arbitration.

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