Sony tackles importer in court

By Games Industry.biz Published 27 June, 2005

Wins injunction against PSP seller.

Online retailer ElectricBirdLand was today ordered to cease selling imported PSP consoles with immediate effect after Sony Computer Entertainment won an injunction in the high court.

Sony's application for the interim injunction claimed that EBL had infringed trade marks and was therefore selling PSPs illegally.

There were raised voices outside the court before the case was heard as a representative from law firm SJ Berwin, representing Sony, asked to hear the case for the defence. EBL managing director Dan Morelle - representing himself - refused to comply, and requested a meeting with Sony's board of directors to discuss the matter.

In court, Sony's lawyer observed that the launch of the PSP marks "an extremely important departure for Sony, in that it's the first handheld they've ever produced."

He argued that the importation and sale of PSPs would "very significantly impact the excitement and anticipation of the market and the way we can exploit that in the run-up to the September launch."

Morelle responded by observing that Sony became aware that EBL was selling imported PSPs on March 21, but did not take any action to contact him until May 9. Sony's representative said the company had needed time to investigate the matter and formulate a legal strategy. He also noted that most retailers contacted have since agreed to cease selling import PSPs.

Morelle went on to argue that Sony was attempting to "make an example of ElectricBirdLand," claiming that many other UK retailers are selling PSPs both online and in high street stores. He also claimed that EBL has sold UKP 11,000 worth of PSPs to Sony companies, an argument which Sony's lawyers say is not relevant to the case.

Morelle told the judge that he had previously offered to accept an interim injunction, with an undertaking not to sell any PSPs without giving three days' notice - providing Sony agreed to a cross-undertaking of damages, meaning it would be responsible for reimbursing EBL for any losses should the injunction later be found invalid.

When questioned as to why Sony did not accept what the judge described as a "fair and reasonable" offer, the firm's representative said that EBL did not present any reasonable defence against the injunction.

"It seems a shame that the undertaking wasn't accepted," the judge said, before concluding that "Sony does have a well arguable case." He then told the court that "the only practical course of action is to continue the interim injunction for a short period."

EBL now has 28 days to prepare witness statements before presenting its defence in court. The retailer must give 24 hours' notice should it decide to sell PSPs again, and Sony has accepted the cross-undertaking of damages.

Morelle then asked the judge if he is permitted to offer replacements to consumers returning faulty PSPs, claiming that ten per cent of units he sells are sent back.

Sony responded by asking the judge to rule that Morelle send any returned PSPs on to them, offering to supply his customers with replacement consoles after September 1. The judge ruled that this was acceptable.

Morelle also complained to the judge that "men in dark glasses" had been sent to deliver documents to his home and left his wife - who was due to give birth yesterday - feeling intimidated.

Sony argued that this had been necessary to ensure the documents were received on time, but the the judge said that such actions should not be necessary, and instructed Sony to use couriers for the purpose of delivering documents in the future.

The next hearing will take place on July 18.

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Comments (49) Latest comment 7 years ago

Comments threads automatically close after 30 days, but please feel free to continue chatting on the forum!

  • Gareth.de #1 7 years ago

    Sony's quickly becoming synonymous with "wankers".

  • abigsmurf #2 7 years ago

    "the judge also instructed Sony to stop their staff carrying baseball bats as it would potentially send out the wrong message...."

    That 28 day injunction is actually a bit of an own goal for Sony, while it stops the one seller, all the others are free to keep selling for that time.

    Sony are continuing to drag their name through the mud though

  • Merefield #3 7 years ago

    In court, Sony's lawyer observed that the launch of the PSP marks "an extremely important departure for Sony, in that it's the first handheld they've ever produced."

    So????

    He argued that the importation and sale of PSPs would "very significantly impact the excitement and anticipation of the market and the way we can exploit that in the run-up to the September launch."

    Exploit being the key word there folks!!!

    Men in dark glasses

    Whaaaaahahahaaaaahahaaaaahahaaaaaahahaaaa!!!!

    Cue Sony Employee (Matrix Agent Stylee) - "Mis-ster....Morelle....I...don't like...you....ve-ry...mu-ch"

    SONY EUROPE, WINNER - PUBLIC RELATIONS CATASTROPHE 2005
    Edited by 5 at 27/06/05 @ 19:35

  • Sid-Nice #4 7 years ago

    It's a pity that Sony didn't act more quickly.

    Morelle responded by observing that Sony became aware that EBL was selling imported PSPs on March 21, but did not take any action to contact him until May 9. Sony's representative said the company had needed time to investigate the matter and formulate a legal strategy. He also noted that most retailers contacted have since agreed to cease selling import PSPs.

    Judging by the EBL thread in this here forum, I don't think Dan sold any PSPs. As there was a hell of a lot of people waiting for one. :)

  • Teeth #5 7 years ago

    LOL at the men in dark glasses. Fucking hilarious!

  • Merefield #6 7 years ago

    Oh, and can I encourage everyone, rather than to boycot the PSP, to buy an imported Japanese PSP if you are keen to get one. Apparently even Sony doesn't have a beef with the buyers, so no Agent will visit. Annoy SCEE and enjoy a PSP early - heaven!

  • drumbaby #7 7 years ago

    Maybe those men in dark glasses had been warned that Meester Morelle would open fire once he could see the whites of their eyes.

  • ProfessorLesser #8 7 years ago

    /redoubles desire to live in Japan, where there is honour amongst thieves

  • Xerx3s #9 7 years ago

    This is what puzzels me though, $ony is the only one who keeps fucking gamers over, and they love them for it? If M$ did anything even similar to this, it would cost em their buisiness. So the big question is, why is everyone so anti m$ and not $ony. Clearly, $ony doesnt have good games or specs and obviously they have no fr*cking clue about how to handle their customers. The DS is a better portable, so that leaves us with what? Is $ony in fact an alien infiltrated corp that is out to destroy the world? Is indoctrination by showing flash frames with seductive text's on all their products that brainwash their customers their means to this wicked end? Will humanity have to send its finest into the expanse to travel in time and create all kinds of paradoxes so that this invasion can in fact be repelled by some means that noone will understand? I fear that there will in fact be a season 5 for this dreadfull series.

  • bionutz #10 7 years ago

    fuckers! not buying anything from Sony ever again!!!

  • #11 7 years ago

    What's with the dollar signs punctuating your post Xerxes? That's one of the single most annoying things to crop up in the comments section in fooking ages. Give it a rest and save your shift key some grief would ya!

  • AndyE #12 7 years ago

    "Morelle then asked the judge if he is permitted to offer replacements to consumers returning faulty PSPs, claiming that ten per cent of units he sells are sent back. Sony responded by asking the judge to rule that Morelle send any returned PSPs on to them, offering to supply his customers with replacement consoles after September 1. The judge ruled that this was acceptable."

    1. 10% faulty? Christ... Not to sound like a fanboy but I'm glad I bought a DS last week than wait any longer for PSP.

    2. Sony Employee: Sony will be happy to supply you with a replacement for your broken PSP from ElectricBirdLand, for a fee.

    Customer: How much will it cost?

    Sony Employee: £180

  • lucky_jim #13 7 years ago

    I'm no anti-Sony fanboy, as the PS2 under my TV will tell you (providing you share my anthropomorphic delusions), but this seriously stinks. If Sony could organise a European launch within a reasonable time, and if they weren't planning to rip us all off with a huge and unjustifiable mark-up, then they might have half a point.

  • Grunk #14 7 years ago

    right,

    someone out there hass to work for a law firm,

    take sony and make your name, I imagine Dan Morelle would also give you a lifetimes supply of everything too.

  • Freek #15 7 years ago

    What's better promotion?

    Taking stores and websites to court to prevent them from giving gamers what they want and getting bad press in the procces so you can "exploit" the market a bitt more.

    or

    Have people show off thier shiny new hardware, wich they bought at those stores, to friends and family: "Look at this cool new gadget from Sony".

  • #16 7 years ago

    ha ha ha, i feel completely justified once again in my belief that sony are a completely useless company, and their customers are mugs.

  • kflarsen #17 7 years ago

    Xerx3s: Relax, take your pills! That should calm you down 'till the men in white coats arrive.

  • tonynibbles #18 7 years ago

    meh.

    Horrah for independent retailers selling what they want and heres to not wanting to turn in to a world of only being able to shop at Dixons and Game.

  • symmetry #19 7 years ago

    YAWN! This is really fucking boring.

  • Sid-Nice #20 7 years ago

    I hope the midwife delivering the Morelle's baby is more reliable the EBL. :)

  • Salaman #21 7 years ago

    /sings

    Here come the man in black.

    Hey be reasonable. If all they get to do is deliver mail, they must sit on their ass a large part of the day. so they probably each have a PSP. Now everyone knwos you can't friggen play the PSP in the daylight, so they probably tried to make amends by putting on the sunglasses.
    ...
    Which didn't work of course.
    So they were probably scowling and looking pretty scary when they dropped off the mail.



    Serisouly... sending out goons to a pregnant lady is a bit OTT isn't it?
    Edited by 1 at 28/06/05 @ 00:58

  • chronom4n #22 7 years ago

    For $ony to do this is bang out of order. they should be grateful to the consumer that they are showing such an avid interest in their product. To me this stinks of CONTROL. $ONY wants to control the importers and here is a question... why did Fony only do this to EBL. I used to respect FONY but, when they send their goons to a guys house and use intimidating tactics on the female folk of this world, then, i say it is wholly wrong. All EBL is doing is spreading the word. At the height of the PS era, there was an article on one of the AV mags on piracy and get a load of this... the Fony employee did not even know that the back of the cd's were black! and at that time if anyone remembers chipping the ps was the thing to do. Sony themselves do not know what the hell is going on. For calling out loud, development houses are buying PSP's and sony wants to stop the importers. $ony have definitely got their heads stuck where the sun does not shine.

  • Psi #23 7 years ago

    a cunning plan from sony methinks, their whole advertising campain is based around bad press and them bashing the little man and the customer!

    I can just see the Curry's advert now, a sony man in black glasses beating linda barker around the head with a broken bottle.

    Damn I'd love to see that advert.

  • Danj #24 7 years ago

    Haha, I love the bit about the men in dark glasses. Typical Sony intimidation tactics. It's a shame they won but it does look like Mr. Morelle got at least a slight compromise there. Anyway the fight is clearly not over since this is only an interim injunction, let's wish Mr. Morelle better luck for Round 2.

  • the_angry_monkey #25 7 years ago

    He argued that the importation and sale of PSPs would "very significantly impact the excitement and anticipation of the market and the way we can exploit that in the run-up to the September launch"

    No offense Sony but if you got your act together and released earlier the import market would die a death. I doubt anoyone imports DSs any more cos the cheap UK product killed the import market.

    I also think sending round itimidating agents is very low indeed

  • Zuiyo #26 7 years ago

    In all honesty, all this for a portable console that is going to be dead in a year or so... useless.

    /wipes Game Gear clean from dust, loads "Sonic"

  • Kafeen #27 7 years ago

    The whole thing could have been easily avoided if Sony had just released it on time instead of delaying the launch by 6 months to give the US more not to buy.

    Well, I'm enjoying my imported US PSP.

  • #28 7 years ago

    i like the fact he got the 10% returns figure in, gotta admire that sony craftmanship.

  • JHuxley #29 7 years ago

    Sony have obviously been moitoring the situation for quite some time and at some point come to the conclusion that the monetary loss was beginning to outweigh the bad press that would arise from a court battle such as this. Wrong move. Not only have they made themselves appear greedy and unkind, they've hardly put a stop to the glut of PSP imports. Ridiculous.

    "This is what puzzels me though, $ony is the only one who keeps fucking gamers over, and they love them for it? If M$ did anything even similar to this, it would cost em their buisiness."

    You mean like this? ht tp://news.zdnet.co.uk/0,39020330,39119181,00.htm

  • #30 7 years ago

    Anyone know WHERE the hearing will be? England (London)?

    If it's 'open court' it could be worth taking the day off and doing some heckling :)

  • #31 7 years ago

    you know the mikerowsoft case was settled amicable and microsoft apologised for its legal department over reacting right?

    though they said they had no choice but to defend the trademark, as to not would allow any major company a precedent to exploit microsoft.

    the 2 cases are not comparable.

  • Wash #32 7 years ago

    lol, Huxley that case is not comparable. 1 its not about games.. and 2 the guy was looking for trouble and probably anticipating a big payoff.

    if you want a comparable case you have to go to Nintendo.

    http://www.ferrago. com/story/1683

  • Shinji #33 7 years ago

    the 2 cases are not comparable.

    Why not, oh great legal expert? You know that Sony's actual case against ElectricBirdland was based on the fact that he's using their trademarks, right? Exactly the same as the MS case you dismiss as being an example of Bill Gates' sweetness and light?

    Besides; I put it to you that the Sony case we've reported on here has less to do with the retailers actually selling imports, and a lot more to do with the retailers who WEREN'T...

  • deaner #34 7 years ago

    I think Sony's defence is valid enough. If people don't get excited about an upcoming product, then sales are going to be harmed. But at some level, I feel importing increases consumer anticipation. I mean, I didn't care about the PSP until I played on an imported model.

    Then again, to argue with myself, importing needs to be kept to a subtle level - or you could end up with a situation where you launch a product in one market, and every other market imports from it. The result would be a product support and localisation nightmare. So you have to discourage importing as levels rise, by the available means. Unfortunately that means taking importers to court. It's much less damaging in terms of PR than taking action agasint the consumers.

    It's likely Sony are aware that importing will continue, albeit at a more 'backstreet' level.

  • JHuxley #35 7 years ago

    "lol, Huxley that case is not comparable. 1 its not about games.. and 2 the guy was looking for trouble and probably anticipating a big payoff. "

    So he was looking for trouble by using his own name for his own, personal website? I fail to see the logic. And just because it's not about games, it still effects the image of Microsoft as a company. They were wrong to take this matter to court just as Sony were wrong to take EBL to court, no matter how much the law is on their side.

  • Wash #36 7 years ago

    Ohh i wasnt aware his name was Mike Rowesoft, my bad.

    also writing to a company and saying for 10k, i'll give it up - shows his integrity in volumes.

  • #37 7 years ago

    it never got to court.

    they just sent him letters threatening court action.

    his name was Mike Rowe by the way.
    Edited by 1 at 28/06/05 @ 10:40

  • tiddles #38 7 years ago

    /wipes Game Gear clean from dust, loads "Sonic"

    /wipes PSP clean from fingerprint smudges, loads "Sonic" on emulator

  • #39 7 years ago

    i don't consider myself a legal expert but i have the common sense to see that sony could only pursue him via trademark as they could not stop him simply importing the psp's.

    if microsoft took anyone to court over imports then that would be comparable, as it stands, you cited a trademark case that was actually a trademark case in the microsoft example. a case that was settled amicably i might add, before it reached court i believe.

    in sony's recent case, the offer of a reasonable settlement before the court date was rejected by sony, so no, the 2 cases are not really comparable unless you conclude that sony refusing the settlement paints them as evil bastards whereas microsoft were quite reasonable.
    Edited by 1 at 28/06/05 @ 10:46

  • JHuxley #40 7 years ago

    "they just sent him letters threatening court action."

    Wow, how considerate of that giant multinational corporation to settle out of court with a few Xboxes (neatly taking the oportunity to promote their own product, I might add). Sorry arnie, it doesn't make any difference. The only thing that seperates MS and Sony in this case are the fact that Microsoft apologised - but only after they realised the disasterous implications of such an idiotic move.
    Edited by 1 at 28/06/05 @ 10:47

  • #41 7 years ago

    there's nothing to respond to there huxley.

    you're clearly wrong in your assumption that the 2 cases are similar. the only way they are similar is that they both concerned trademarks, though in sony's case that is a red herring.

  • Grunk #42 7 years ago

    does that mean he can sell the psp's under the name of 'portable gaming device' if rubbed off the psp logo on the front??

  • Xerx3s #43 7 years ago

    Mapster doesnt get it, does he. kflarsen & Semmetry seem to get the point.

  • Derblington #44 7 years ago

    "you're clearly wrong in your assumption that the 2 cases are similar. the only way they are similar is that they both concerned trademarks,..."

    ? arnie, could you point out how they differ?

  • #45 7 years ago

    i already have.

  • Derblington #46 7 years ago

    Then I must've missed it as you've agreed that both cases are over trademarks, the only difference being one has gone further than the other. I don't see how that makes them non-comparable, both companies are trying to protect their monetary interest.

  • #47 7 years ago

    yes you must have missed it.

  • JHuxley #48 7 years ago

    Arnie, I agree the two cases differ in the fact that one was settled out of court and one was filed against a business and the other an individual, but can't you see that both were trying to protect their assets? And in doing so they both generated negative publicity which reflects poorly on them as a company.

  • #49 7 years ago

    sony didn't have to pursue this case though. they could live with the relatively low amount of imports that are coming in to the UK until september. microsoft had to defend the trademark.

    i say again for the slower members, sonys case had to focus on trademark as they had no recourse to simply stop the imports. the trademark was a technicality (which is laughable as they created the import market by releasing the PSP in september in europe)

    microsofts case was entirely about trademark, they had no choice but to defend the trademark lest it becomes open season for everyone on microsoft. and it was settled out of court.

    whats with the provision that sony will replace the huge amount of faulty psp's come september though? thats just spiteful don't you think?


  • Derblington #50 7 years ago

    I don't think it's spiteful, at least they're going to do it. It would piss me off if mine had gone wrong but they're sticking to the argument that they've used all along; that the best version console will be the one localised for your region.

  • JHuxley #51 7 years ago

    "sony didn't have to pursue this case though. they could live with the relatively low amount of imports that are coming in to the UK until september. microsoft had to defend the trademark. "

    Do you know how many PSPs have been imported into this country since its release in Japan? I don't think even Sony know this for certain. Whatever the exact number, it's unlikely to be 'relatively low'. Sure Sony only have themselves to blame in this regard, but I doubt they would have taken court action had the importing not been so rife.

    "microsofts case was entirely about trademark, they had no choice but to defend the trademark lest it becomes open season for everyone on microsoft."

    Err...come again? So is that why they publically apologised and let Mike Row continue to operate his website? They admitted it was a mistake, which you seem unable to do.

  • #52 7 years ago

    they took over the website.

    SEATTLE, Washington (AP) -- A Canadian teenager whose Web site address bothered a certain giant software company will find a new home on the Web, Microsoft Corp. said Friday.

    Mike Rowe, a 17-year-old resident of Victoria, British Columbia, has agreed to pick a new name for his Web site, currently called www.mikerowesoft.com , said Microsoft spokesman Jim Desler.

    Mike's father, Kim Rowe, confirmed that his son had struck an agreement with Microsoft. Rowe said his son could not be interviewed Friday because he had to study for final exams.

    Mike also is working feverishly to put together a new Web site, his father said.

    Desler said Microsoft would cover Mike's costs of changing to a new Web site and redirecting traffic from the old site. Microsoft also had agreed to help the teen get Microsoft certification training and other gifts, including an Xbox game console, he said, and has invited Mike to a technology festival in March at the corporation's headquarters in suburban Redmond.

    "We wanted to do this in a way that's going to foster his interest in technology," Desler said.

    In a posting on his Web site earlier this month, the teen said he received a 25-page letter from Microsoft informing him he was committing copyright infringement, and threatening legal action.

    Desler said Friday that Microsoft believes it's important to take steps to prevent widespread infringement of its name. But he conceded Microsoft's original approach was "admittedly maybe impersonal."

  • #53 7 years ago

    'Rowe has offered to return any money donated to his defense fund. "As Microsoft has kindly offered to pay my out-of-pocket expenses, these donations will no longer be necessary. As I have said from the beginning, I was not into this to make money," he added.'

    kinda rich coming from a kid who asked for $10,000 to cover 'costs'.

  • abigsmurf #54 7 years ago

    considering a half decent lawyer will charge around £150 an hour just to talk to you, let alone the charges for filing paperwork, doing research, court appearences etc. $10,000 doesn't stretch too far, especially as businesses like to stretch out cases to bankrupt the defendant so they drop their case

  • #55 7 years ago

    no, no. he wanted that from microsoft to cover the cost of him setting his website up.

    a patently ridiculous figure i'm sure you'll agree.

  • Monsta #56 7 years ago

    does this mean that it will be alright for companies to sell imported PSP and games once September 1st has passed.

    The only reason Sony gave was that they were building up to a big launch so surely after the launch theres no problem

  • tiddles #57 7 years ago

    Is this any different from Nintendo stopping UK indie retailers selling NTSC games?

  • Zuiyo #58 7 years ago

    /wipes Game Gear clean from dust, loads "Sonic"

    /wipes PSP clean from fingerprint smudges, loads "Sonic" on emulator

    /reads news about compulsory firmware upgrades for PSP games which makes emulators unusable
    /laughs out very loud at Tiddles

  • Razz #59 7 years ago

    /dons Jurassic Park hat

    "Hackers will find a way"
    Edited by 1 at 28/06/05 @ 14:59

  • captain-future #60 7 years ago

    jeeeee-ssssusss: I hope the psp seller win this in court!

  • dj-danger #61 7 years ago

    according to Dan at his blog it was a small victory?! So much for Mr Reeve's statement that inporters were small beer, I wonder how much Sony have spent on this already?

  • tiddles #62 7 years ago

    /laughs out very loud at Tiddles

    drat!

  • Universal_Hamster #63 7 years ago

    EEEK. I ordered my PSP from these guys last saturday! Apparently its still coming though. Gave me quite a fright.