Sony Strikes Again

need for speed

After recent successes against an Arab computer dealer,Kabushiki Kaisha Sony Computer Entertainment Inc, the manufacturers of Sony Play Stations are continuing to fight copyright infringement in the form of retailers of computer equipment selling rip off DVDs. Using the services of Gershuni Slymovezh, the partnership that includes former Deputy Patent Commissioner Noah Slymovezh, Sony has sued Einat Anu Rokahn (S.A.R. Electronics).

Sony sent a private investigator to S.A.R. Electronics, who bought four games for Playstation 2 selected from a wall display of disks. The four games cost a total of 50 Shekels, and the investigator was issued with tax invoice number 0898 which listed four Sony 2 games burned onto disks.

For those interested, the disks in question were:

  • Need for Speed Most Wanted
  • World Super Police
  • Stuntman
  • Sagan Om De TVA Tomen

(I can make a wild guess what the first four games are about, and suspect that the name of the fourth game is corrupted. This probably indicates that I am not a gamer).

In addition to accusing the store of contributory copyright infringement (with maximum statutory damages without proof) of 100,000 Shekels, Sony accused the store of infringing their trademarks, and Unjust Enrichment. Despite claiming years of infringement with tens if not hundreds of sales of fake disks, Sony capped their claim at 150,000 Shekels.

The store owner claimed that there was one shelf with maybe 15-20 disks and further claimed he was innocent of all knowledge that the disks weren’t genuine.

The Haifa District Court ruled that computer programs are protected by copyright and that Sony owns the copyright. Although knowledge of the copyright is required, the burden of proof need only establish a legal construct of knowledge and not actual knowledge. The argument that the owner of a commercial retailer does not know what he is selling is unreasonable. The combination of the defendant being a seller of computers and electronics that sells disks at a greatly reduced price and the source of the disks being unclear is indicative that they did not originate from a licensed dealer; the fact that the disks were programmable disks written with the program rather than punched disks, when it was clear that the vendor had seen the disks prior to their sale, leads to the inescapable conclusion that the defendant either knew or at least should have known that the disks were not originals. Consequently, the vendor is guilty of indirect copyright infringement of the copyrights in the Sony Playstation software.

After taking into account the various legal and subjective considerations, Judge Orit Weinstein of the Haifa District Court ruled that the defendant knew or at least should have known that the DVDs with Playstation games thereon were not originals and that their sale was copyright infringement. Consequently, the defendants have to compensate Sony 16,000 Shekels in statutory damages, plus 1000 Shekels in legal expenses and 4000 Shekels in lawyers’ fees.  Furthermore, an injunction was issued against Einat Anu Rokahn (S.A.R. Electronics) to refrain from selling fraudulent CDs.

Civil Case Number 14-11-23739-28 Kabushiki Kaisha Sony Computer Entertainment Inc vs. Enat Abu Rokan, S.A.R. Electronics) Haifa District Court, Orit Weinstein, 26 April 2015

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