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German group sues Valve

Federation of German Consumer Organizations claims Steam users own the games they purchase and should be able to re-sell them.

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The Federation of German Consumer Organizations (VZBV) has filed suit against Half-Life maker Valve, claiming users should be able to resell the games they own.

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As reported by PCAdvisor, VZBV project manager Carola Elbrecht said Steam users should have the means to sell their digital wares, much in the same way that gamers can sell boxed products at their discretion.

"If I pay the full price for a game, then why am I not allowed to do with it what I want," Elbrecht said.

The VZBV reportedly warned Valve about potential legal action in September, but the company did not amend its practices to comply with the group's demands. Thus, the VZBV sued Valve in the District Court of Berlin this week.

A Valve representative told GameSpot that it has yet to see a formal complaint from the VZBV.

"We are aware of the press release about the lawsuit filed by the VZBV, but we have not yet seen the actual complaint," the company said. "That said, we understand the complaint is somehow regarding the transferability of Steam accounts, despite the fact that this issue has already been ruled upon favorably to Valve in a prior case between Valve and the VZBV by the German supreme court. For now, we are continuing to extend the Steam services to gamers in Germany and around the world."

The VZBV's prior legal entanglement with Valve went all the way to the German Federal Court of Justice. A judge ruled in 2010 that Valve's prohibition of user account transfers did not violate German law.

A European court ruled last summer that content creators can't prohibit post-purchase redistribution of work, no matter what end-user license agreement says.

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Avatar image for jokerdk
jokerdk

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If you read closely Steam rules on game purchase, you dont actualy buy a game, you just borrow it. You have only access to them. Thats about it.

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INF1DEL

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@jokerdk Yeah, I just checked out the Steam Subscriber Agreement. It actually says this.

"The Software is licensed, not sold."

Apparently you don't own actually own the game. I don't think this lawsuit is going anywhere.

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Pro-Aktivity

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Edited By Pro-Aktivity

@INF1DEL @jokerdk As mentioned before consumer laws made by countries supercede whatever rules a company might put into their EULA's. So things might not necessarily be as easy as you think.

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o0squishy0o

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Edited By o0squishy0o

I do believe alot of people are getting mixed up on what "owning a game" is all about. If the lisense agreement that you agree to (by buying the game) is one of "you own the right to game and the disc itself. The game disc is now yours, so you may do whatever you wish with the disc", then fair enough you may sell the disc to someone else. However for games nowadays, the consumer is paying for the ability to play the game. Think of it as a TV lisense, or an Internet connection. You don't own the internets, you don't own the TV channels, you can't sell your TV signal to someone else, because you are subscribing to the service and nothing more.


In real lamens terms; When you buy a game its like an arcade machine. You put your money in to have the experience. Thats it. You don't own the arcade machine, you can not resell the arcade machine. You just pay for the experience it gives you.


I personally have no problem with that sort of service, but I can understand why some people would wish to resell their games to their friends, or to part exchange it.

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jark888

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@o0squishy0o Resell physical copies: seen it all the time. Resell the digital ones: never dream about it.

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MatrixGamer78

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Edited By MatrixGamer78

@jark888 @o0squishy0o the best way to resell digital copy is to burn it on disk and put it at the auction

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LAnoirFAN

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reselling games will be a huge loss for steam and gaming companies, and why they're suing steam for not letting them sell they're games, if it's like that they should sue gamestop and other shops for not buying their used pc games first!, and i think steam is currently working on a trading system, i don't know if it's true, but that will be a very good option, trading a game with friends and others will not affect steam or gaming companies.

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sephsplace

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I really dont understand this..... if they win surely the potential of obliviating digital sales industry in Germany is a bad thing? Also as previously mentioned, alot of features offered through steam/valve surely makes it more of a service (eg steam cloud, workshop etc)

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Avatar image for nkaiton
nkaiton

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@sephsplace Do you mean obliterating? I'm pretty sure obliviating isn't a word.

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DarkRaven0021

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@nkaiton @sephsplace Your correcting of his/her word usage is not really called for. I have a lot of friends on this site and Fuse that are not English speaking or not fluent but they manage to get the point across.

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Jinzo_111887

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Edited By Jinzo_111887

@sephsplace Not just Germany, but all of Europe.

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RobertAgius

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What if they implement a system allowing used games sales but they take a small cut as a compensation?

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shenhua1337

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@Pro-Aktivity has a point. Me, being no fanboy of any company, being in retail or digital distribution. I can say that it feels curious, watching this debate.

In every market businesses operate by some rules. If online distributors, instead of competing on the same terms like other businesses, want to adjust the rules to their liking. What else is it than a distortion of the free market?

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jenovaschilld

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@shenhua1337 businesses, corporations have always tested consumer protection rules since the time of each one that has been created. And at the behest of consumers, each state and country responds to consumer's complaints in one form or another.

... Supply and demand... will screw you if I can ...

and especially if you let me.

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DemonChorro

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Edited By DemonChorro

Isn't it in the terms and conditions that you can't sue Valve about this

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shenhua1337

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Edited By shenhua1337

@DemonChorro Like already said. You can't make terms and conditions of your deal that collide with the laws set in that enviroment. The nature of this suit is to establish if Valve can legally distribute games the way it's doing, prohibiting their customers from reselling their purchase. I don't see how making such a lawsuit could be illegal.

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ColdstoneX3

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Edited By ColdstoneX3

@DemonChorro Country Law usually has more weight than a companies Terms and conditions would, so if they believe Valves terms are in violation of the law, the country will take it to court.

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tightwad34

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I thought it was against the law to sue Valve.

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shenhua1337

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@tightwad34 Different place, different law.

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jenovaschilld

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@tightwad34 It is more like our law 'first use law', 'resale law' that has been on the books since like 18.. something. More of a consumer protection law that is reacting to consumer complaints then trying to allow lawsuits against a company.

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jenovaschilld

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Edited By jenovaschilld

A am not a fan of digital games, or digital distribution- I feel if you pay full price for a game, say Borderlands 2, then you should own it, be able to download it, play it and later on receive a hard copy retail box of it by mail if so desired with s/h charges.

BUT, in regards to the story above, when you buy digital games off steam or anywhere you are also agreeing to and basically signing a contract in there terms and services - that you are giving up your legal consumer rights, an agreeing to buying a digital copy that can only be used by one person, and at the sellers discretion. Therefore those guys in germany are SOL.

I do wish that new digital games cost alot less then box retail ones. Because, basically, once you purchase that digital game, dlc, etc it has ZERO value. You cannot trade it, give it to a family member, let a friend borrow it, or sell it used. And a lot of times have no recourse in regards to better business bureau - no way to complain if it does not work with your system, crashes your system, and no way to recoup your money- because you agreed to whatever you get. Now a retail copy at a brick and mortar store is protected by laws in each state, you can also legally resell it (like a used car, book, lawnmower, etc), share it with a friend (if able), trade it, and yes even pc editions of games even with their restrictions.

But digital games are easy, do not have to wait, do not have to worry about someone sitting on a disc, supposedly will always be there. And steam and valve really do a great job of optimizing and distributing games so damn well. I myself usually only buy old games dlc for the convenience and try to buy console games directly from a store or pc games if they allow it on more then one cpu, that way I can give it to my cousins and nephews when I am done with it. Germany's supreme court had to side with steam because digital versions of games are essentially a contract that makes the game more of a service and less of a product. As bandwidth allows more of the world to be opened up to digital content it will be up to each consumer to decide if the conveniences and services, balance out the value and restrictions of a new era where digital copies will be more prevalent then retail boxes.

I will miss the good ole days of legally taking the best songs from cassettes dubbing them to a blank, and cutting the tape down and giving them to chicks at the drive in.

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Rjasper48

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@jenovaschilld You make very valid points and address all counter-points. It's a pleasure to read this comment after reading so many other foolish ones.

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Rjasper48

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Edited By Rjasper48

Even though it would be great to be able to resell our digital games, think what it does to a company financially. Valve is a company that runs on a low price: high sales model. This is extremely beneficial for both consumer and producer.

Imagine if reselling of these very discounted games were possible. Valve would not be able to price these games as low due to the second-hand trading. This would, in the long run, cut Valve's overall sales tremendously. In business, an increase in quantity means a decrease in price. This is the idea that Valve has used for years, and us PC gamers have grabbed many games for a small fraction of the price that a console user would pay.

In conclusion, Valve is a business that operates for profit, like any business. However, unlike many of the huge producers such as EA, Activision, and Ubisoft, Valve prices games to benefit all parties. The other companies have price points that benefit them and only them.

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jenovaschilld

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@Rjasper48 Agree valves steam, and others do a great job of bringing old games to the masses. The optimization of older games also is a service I think they deserve to be paid for and paid for well. Great post.

I do think the Germany consumer protection group is reacting more toward protecting their citizens then trying to hinder or put steam outta business. Germany like America have had laws on the books for hundreds of years protecting consumer's rights (unless you were Je.... well no need to get into that right now) but being able to resale something you paid for is very ingrained and helps the economy. You know for years companies have tried to prevent the reselling of their products especially ones that lose their value quickly. (one law they wanted to pass was you couldn't resale a music album if it did not have the album cover intact and readable. Then they put an adhesive string down the back that when you tried to open it would tear the back cover. They have tried to pass a law that any furniture which did not have certain labels could not be resold in used furniture stores and of course they would put those labels right on the front.)

Germany is not being evil, I think, in regards to the story above or trying to single out steam or any other digital distributor but reacting to consumer complaints and the protection of their citizens. But again in regards to the story above the are wrong (well not 'in' the wrong) legally because the consumer's are agreeing to what they get, both good and bad. I also read this story over at games industry international and more of the focus was on day one games. I guess to many resident evil 6 buyers having remorse.

I think a compromise would be to explain it to the consumer better and more simpler- "hey that digital game you are now buying, with the ability to get it now, optimized for you needs, stored here if you ever lose it, and better yet, you do not have get off your ass and go to a store where sunshine possible may burn you. - WELL JUST SO YOU KNOW- you are not buying ownership of a physical product, you are agreeing to a service, one that you cannot give away, resale, trade, or get a refund because it sucked. All of those games in your digital collections is not a physical item you cannot will it to relatives if you die, hand it down to your children when you get old, or trade to a neighbor for a bike. Much like a lap dance you get see it once, take it with you forever, remember it as much as you want - but no matter how much try cannot share it with others no matter how hard you try to explain. Now if you want to go buy a copy from the store by all means, you then have all the legal rights given to a physical product in regards to each state and country. But since you just checked the box agreeing to our terms and services - screw you. Now lets go play some f'ing video games."

I think wording it that way above would help alot.


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Avatar image for CieloPerso
CieloPerso

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Is there something wrong with that grey kitty?

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J_Dangerously

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VZBV successfully wins court case. German gamers rejoice.

Valve ceases all operations in Germany. German gamers QQ.

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IevildirkI

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you can trade games for other games and in game items, which is more than any other digital distributor, what about xbox live games then?

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kalimeru

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Edited By kalimeru

digital distributors only need to put a sentence with something like this:

"you are not buying this game but only a authorisation to play it. The game is and will remain the property of company XYZ"


I hope I'm wrong though

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J_Dangerously

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@kalimeru This is already stated in the End User License Agreement (EULA) we all check off on, and usually ignore without reading. Very, very few sadists will actually read an entire EULA.

In answer to your question/statement, the last paragraph of the article addresses this. Simply telling German and European gamers that they're only purchasing a license to play the game, not ownership, is now prohibited.

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jenovaschilld

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Edited By jenovaschilld

@J_Dangerously @kalimeru Agree - dangerously they are basically telling the courts they are selling a service.

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Jinzo_111887

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Edited By Jinzo_111887

@J_Dangerously @kalimeru http://www.techdirt.com/articles/20111117/03284416803/court-tells-omega-copyright-is-not-sword-rejects-attempt-to-control-grey-market-as-copyright-misuse.shtml Remotely related. I get the feeling courts are getting tired of copyrights being misused and are finally limiting them.

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KingofCabal

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Edited By KingofCabal

The Resale of Digital games could destroy the entire concept of digital distribution since digital games dont age and cannot really be considered as used. This would mean disaster for any digital distributor since gamers could simply resell effectively new games to other gamers and destroy a large part of the income of Steam and other Digital distributors.

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Jinzo_111887

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Edited By Jinzo_111887

@KingofCabal However, this might have some benefits. Online passes become a memory, no used game lockout for next gen, retail games staying around longer, a legal way to get digital games that are no longer for sale like Second Sight, etc. There are both good and bad that result from this.We can only hope for the best.

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sogu2529

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Start allowing resale, and prices will have to go up on steam... It's a total loss for both sides of the trade. Valve will lose money because less people will buy from them, and we will have to pay more to get games. It just complicates things. Gabe Newell is my hero, and Steam is already a gamer's utopia. Why the hell would we want to break the current market?

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rattboy666

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You can't have "used" digital copies of games if they are the same exact as "new". "Used" is for things that are physical/tangible and are vulnerable to wear and tear. It just doesn't make sense for digital copies. If this was possible why ever buy "new" if you get 100% of the same item for a lower price without having any sort of decrease in its actual value. You are paying for a license to play games on steam.

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PeterDuck

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@rattboy666

yeah, you are also probably paying for the bandwidth space with Valve's servers.

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jurk182

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This is going to be an important battle in a lot of countries in the coming years. I don't see consumers winning out over these greedy publishers though. They are trying to re-define the very concept of ownership. Not just Valve, mind you. Book publishers are the worst. If they had their way there would be no book stores left in the next ten years.


When I buy something I like to think I own it. If I read a good book or play a good game, it should be my right to loan it to my friends so they can share in it, or I should be able to sell it if I want to. It's mine. I paid for it. It belongs to me. I am not a luddite when it comes to technology and I do see a lot of advantages to digital distribution, but sometimes I think the world is embracing it too quickly, and not giving very much thought over the consequences. So I support this group in their endeavours to preserve people's rights to own their own property.


It's bad enough consumers don't even get a discount in most cases when buying a digital version of a piece of media.

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jenovaschilld

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@jurk182 Great post, well written. I do think if theirs and our consumer's protection group would just have digital distribution vendors explain to consumer's better that they are not buying a physical product but simply a service, one that is not only not physical, but a version that they agree to by giving up any legal right of ownership at the discretion of the seller. It would clear things up, at least maybe it would allow consumers a better understanding of what they are and are not getting for their money. Then if they still decide to buy digital over a retail box, well you cannot change the 'you get what you paid for'.

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Total_mischief

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@jurk182 You buy a license. What you own is a license that allows you to use the company's products under certain terms. When it comes to digital copies, said license is attached to a computer(s) or user account. If you want to share that product, buy a physical copy or share your account info with your friend. If you don't want to deal with this, don't buy digital media. They are going to lose that battle, plain and simple, because it's stupid and comes from ignorance.

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Jinzo_111887

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@Total_mischief @jurk182 EU court already ruled used digital legal. I know it's not cool for Steam, but they have to comply with the laws. However, it is possible for some good stuff to come from this. Retail might last longer, and online passes might be rendered pointless. The used game block technology rumored to be in next gen consoles could also be illegal by this ruling.

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Jinzo_111887

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@RedLegZeff @Jinzo_111887 @Total_mischief @jurk182 I wouldn't be sure about multiplayer. If they take that away from them, they might boycott, or even hack those games. Anyway, I've done some reading on the DMCA and found out America has a loophole in the circumvention clause. If a measure to block used games makes them obsolete, circumvention of that DRM would be legal. Irony, when you think about it.

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RedLegZeff

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Edited By RedLegZeff

@Jinzo_111887 @Total_mischief @jurk182 Steam and most digital distributers don't really have a way to transfer keys aside from giving the game away for free to everyone. That EU ruling could lose the EU all digital games as a result. But yeah this could help retail, but they might not ever be able to use dlc or multiplayer in europe.

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tagyhag

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I'd love to be able to resell it. Even if it meant reselling back to Valve for just 10% (Better than nothing.)

What people don't understand is that it actually can work. Look at Green Man Gaming.

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RedLegZeff

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@tagyhag That might be the one thing that could work. Selling it back to valve for say half to a third of the lowest sale price to date or something. That could get valve in trouble with publishers though as they could sell the used key as new. Or they just eat the money. It's kind of a mess no matter what really. If used is identical in every way to new there's a chaotic mess.

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draco934

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in other news, Germans still love David Hasselhoff

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richten71

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Sorry, but VZBV will lose this one. In Case C-128/11, UsedSoft GmbH v Oracle International Corp., states that the copyright holder (don't know where Gamespot got "content creator" because that term is never stated in the judgement and their is a difference) gives up his right on his hold on a computer program once a sale has been made. It also states that the new rightholder has the right to resell those rights to a different person on condition that he makes that computer program inoperable on his own computer. Also states that the new license holder may download that computer program from the copyright owner's website. Here's how Steam will get out of this. Steam is not the copyright owner of these games or, in Gamespot's words, the content creator. If a person wants to sell his games, then the new owner would have to download it from the developer/publisher's website. Steam does not have to provide this service, especially when they are not benefiting from it. Because a whole new infrastructure would have to be developed to monitor the transferring of license, what Steam may end up doing is providing this service for a percentage of the sale (maybe like 15%). Will people be outraged? Of course they would, but their choice is to download from Steam with it's more reliable servers for a fee, or download it from the developers/publisher's website, which many don't have that option other than EA's Origin. Another concern is what's to stop me from making a backup of my hard drive, selling my game and having the company deactivate the license on my computer, restore my hard drive and play that game in offline mode. I just got a free game.

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Tery15

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@richten71
Valve does no have to provide service to transfer games between accounts but Valve cannot ban account for resells his own licence (all games with account). The new-owner have a right to use the licence if the older owner sold access to this account.

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jenovaschilld

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@richten71 Exactly you are buying a service, a service where valve owns the distribution rights, not a actual physical product. That is why I try to buy physical copies of console games or pc games that allow it to be on more then one.

As for your last part, you can sure do that, but how many have the tech skills or able to scrap away the cheetos dust off them long enough to bother taking the time. There is always around something, but the cost and effort is usually taken into account.

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