The Chicago Transit Authority will reinstate the Grand Theft Auto 4 ads that it pulled from Chicago buses back in the spring, but after a short run the CTA will no longer accept ads for M-rated games.

A settlement was reached only recently after publisher Take-Two sued the CTA for breach of contract over the incident before the game was released in April, reports Chicago Breaking News as noticed by GamePolitics.

Under the settlement, Grand Theft Auto 4 ads will appear on Chicago buses for the next six weeks. Other terms of the settlement remain confidential.

After that, the CTA will no longer run ads for M-rated games under a new ordinance passed by the CTA board last week. According to Chicago Breaking News, the ordinance "cites a 'demonstrable correlation' between intensely violent video games and violent or aggressive behavior.

The Grand Theft Auto ads, both then and now, include no overtly violent, sexual or otherwise graphic materials that would normally prohibit ... Read more

Everybody involved in the making of music-rhythm phenomenon Rock Band--developer Harmonix, publisher MTV, MTV owner Viacom, and distributor Electronic Arts--has been hit with a class-action lawsuit stemming from the game's drum peripheral.

Monte Morgan of Kansas alleges that the above four companies conspired to sell defective drum kits after admitting that the drums' kick pedals were defective. Morgan's lawyers noted that the defendants' special warranty extension lasted until October 1--just before the release of Rock Band 2 featuring a new and improved kick pedal.

That timing was not a coincidence, but rather a strategy designed to coax defective Rock Band drum owners into buying a new Rock Band 2 instrument bundle, claim lawyers in court filings obtained by GameCyte.

In less conspiratorial terms, the lawyers also claim that Rock Band's current 60-day warranty isn't enough in case, for example, a parent buys a copy for their child far in advance of Christmas.

Defective instruments have been a thorn in Rock Band's side since... Read more

Publisher Activision has modified the box art for Left Field Productions' offroad racer Score International Baja 1000 following a legal complaint that the original cover art was too similar to that of the THQ-published, 2XL-developed Baja: Edge of Control.

THQ and Activision settled the issue out of court, reports Patent Arcade, with THQ having dismissed the lawsuit and Activision rolling out redesigned cover art.

Both Baja: Edge of Control (PS3, 360) and Score International Baja 1000 (PS3, PS2, Xbox 360, Wii) are now at retailers, with the new artwork expected to hit shelves shortly.

Sony will be forced to pay $18.5 million in damages to a company called Agere Systems for a patent violation on a "wireless local area network apparatus" included in Sony handheld devices including the PSP.

The ruling, discovered by PSP Fanboy, ends a lawsuit filed two years ago by Agere. The firm is now a subsidiary of a company called LSI, "a leading provider of innovative silicon, systems and software technologies that enable products which seamlessly bring people, information and digital content together."

A jury ruled that the patent infringement was willful, which likely contributed to the total amount Sony is ordered pay.

Sony, like other large-scale game companies, was also recently hit with a patent claim for the PlayStation 3's Blu-Ray capability. In 2007, the company won a dismissal in a Blu-Ray-related suit and settled with Immersion, a force-feedback developer.

Capcom has won a lawsuit over film production company MKR Group, who alleged that Capcom stole from MKR's Dawn of the Dead (1978) to make Dead Rising (360), the well-received zombie-massacre action game.

United States Magistrate Judge Richard Seeborg granted Capcom's motion seeking relief from a lawsuit after MKR threatened to sue. "The few similarities MKR has alleged are driven by the wholly unprotectable concept of humans battling zombies in a mall during a zombie outbreak," claimed Capcom in the motion.

Capcom's legal victory was not a pretty one. "Dozens of zombie movies and games" introduced in court by Capcom--intended to establish the... Read more

Brash Entertainment, the licensed game publisher which shut down last week, has been sued by two of its contracted studios for work that has gone unpaid.

According to a report by Variety, 7 Studios, based in Los Angeles, has filed suit against Brash claiming $468,000 in owed compensation for work on 9, a tie-in for an upcoming Tim Burton animated film, and an additional $113,000 for Six Flags Fun Park (Wii, DS), a mini-game collection featuring the amusement park giant's brand.

Zootfly, a Slovenian studio, has demanded $748,000 for a game tie-in for the Fox television show Prison Break.

Brash reportedly stopped paying its developers roughly two months ago after the publisher's funding dried up amidst the current credit crisis. Co-founders Thomas Tull and Nicholas Longano left the company a month ago, citing quality concerns with the company's products.

Its debut games, Alvin and the Chipmunks and Jumper, tanked both in ratings and at retail. When it was founded, co-founder Bert Ellis famously described licensed games as "the safest, most lucrative way to sell a video game."

Variety points out that Brash had "around a dozen projects" in the works at the time of its collapse, signaling that more lawsuits may be on the horizon.

Nintendo, which has been hit with a plethora of patent lawsuits in the last few years, has been served another: a "small Ohio technology company" called Motiva has filed a patent infringement suit against Nintendo for its motion-sensing Wii Remote.

"Motiva is not a patent troll," said Chris Banys from Lanier Law Firm in response to gamers calling out Motiva for filing intentionally vague patents then suing companies that use technologies resembling those patents. Motiva "worked hard" to secure its patent, claimed Banys in an interview given to Edge.

"Big companies don't like to be sued. They also don't like to pay small inventors when a small inventor actually has invented something," the firm representative asserted.

Banys continued to characterize Motiva as the rugged underdog. "Big companies would rather go out there without doing the right thing. They'd rather not buy the license, make a lot of money, and leave the person that actually invented the thing out in the cold."

"Nintendo I'm sure will have good lawyers who have interesting stories... Read more

Electronic Arts is the recipient of two additional lawsuits related to SecuROM DRM technology, this time in relation to Spore Creature Creator and The Sims 2 expansion pack Bon Voyage.

Richard Eldridge of Pennsylvania is suing the publisher over the undisclosed installation of SecuROM software on his computer after installing the demo version of Spore Creature Creator, reports GamePolitics. According to Eldridge's suit:

The inclusion of undisclosed, secretly installed DRM protection measures with a program that was freely distributed constitutes a major violation of computer owners' absolute right to control what does and what does not get loaded onto their computers, and how their computers shall be used...

Meanwhile, "avid Sims player" Dianna Cortez of Missouri cites EA for "immoral, unethical, oppressive [and] unscrupulous" conduct after including SecuROM in The Sims 2: Bon Voyage, which allegedly caused a host of problems on Cortez's computer.

The suits follow the trail blazed by Melissa Thomas, who in September sparked a $5 million class action suit against EA for its use of SecuROM in Spore.

GamePolitics noted that the same law firm that represents Thomas is also representing the new plaintiffs, Eldridge and Cortez.

Publisher THQ has sued fellow publisher Actvision, claiming the box art for Activision's Score International Baja 1000 is too similar to that of THQ's Baja: Edge of Control.

"Activision's impending use of packaging art [for its game] ... is likely to confuse, cause mistake or deceive the public into believing that the Activision Game originates or is sponsored or approved by THQ, when in fact it is not," claims the lawsuit, as reported by Edge Online after Patent Arcade broke the story.

THQ is asking the court to delay the release of Activision's Baja game until the artwork is changed, otherwise it believes it will suffer "as yet unknown" damages, which would cause THQ to "be entitled to Activision's profits from the sale of the Activision Game."

According to the suit, which also seeks attorney's fees, THQ contacted Activision regarding the similarities in the beginning of October, but Activision refused to change the packaging. Baja: Edge of Control (PS3, 360) arrived in September, while Score International hits retailers this week in PS2, PS3, Xbox 360, and Wii editions.

Robert Alexander, a former board member of publisher Take-Two, has sued the company for $50 million, alleging that Take-Two reneged on an oral contract with Alexander.

It's a complicated story dating back to the 1990s, but GamePolitics sums it up well:

In his suit Alexander claims that he has been in the game biz since he was 16. He says that he built up a distribution company called Jack of All Games which he sold it to Take-Two in 1998. After closing that deal he spent some time as a member of the T2 Board of Directors, leaving in 1999.

In 2003 Alexander formed a new distribution company, Game Ballers, and began negotiating with Ryan Brant and other execs to partner with T2 and Jack of All Games. Although Alexander began working... Read more

In light of the class action lawsuit that accused hardware makers Nvidia and ATI of fixing prices to keep video card prices artificially high, Nvidia proposed a $1.7M settlement.

The settlement, which is pending court approval and would resolve all claims against Nvidia, would see that $1.7 million sum split amongst those that bought hardware directly from ATI or Nvidia websites between December 4, 2002 and November 7, 2007.

Of the $1.7 million, Nvidia has offered to pay $850,000 of the figure. It is assumed that ATI would pay the remaining sum, thought the company has yet to confirm this. After that payment, Nvidia will not need to provide any other compensation, such as legal fees.

Nvidia also announced that it has settled a related price fixing case filed by individuals who bought Nvidia hardware from non-direct vendors. Under the agreement, those individuals will receive a total of $112,500 in exchange for dropping all charges.

However, that $112,500 will only go out to those who filed suit on their own, as the court denied a request classify the indirect purchase case as a class-action lawsuit, which would have encompassed anyone who purchased hardware from a non-direct vendor during the allotted time frame.

The controversy surrounding EA Maxis' PC evolution simulator Spore and its DRM continues to escalate, with studio owner and publisher Electronic Arts now facing a class action lawsuit due to the title's use of SecuROM copy protection software.

Whereas most of the controversy thus far has stemmed from the limited number of installs available to legitimate owners, the claims of plaintiff Melissa Thomas lay with the undisclosed installation of the SecuROM software that enables the above practice.

Filed on September 22, the suit argues that Thomas and "all others similarly situated" would not have bought the game had EA disclosed the title's installation of SecuROM. It claims that SecuROM prevents unspecified user actions and programs from operating, with the software only removable if "the consumer completely wipes their hard drive through reformatting or replacement of the drive."

The "aggregate claims of plaintiff and the proposed class members" are said to exceed the sum of $5 million, according to legal documents obtained by Courthouse News Service, with the suit specifically seeking "actual damages, individual restitution, equitable relief, civil penalties, cost and expenses of litigation, including attorneys' fees, and all further relief available" from Electronic Arts.

Relevant quotes from the document follow... Read more

Updated: GamePolitics is now reporting that the lawsuits are not related to file sharing, according to the attorney representing Activision.

Original story: Game publisher Activision, the house of Guitar Hero (X360, PS3, PS2, Wii, DS) and Call of Duty (X360, PS3, PC, Wii), is suing individuals for pirating Activision games, garnering large cash settlements and agreements to stay silent.

Edge reported today that Activision has sued New York man James R. Strickland in federal court for copyright infringement, specifically mentioning the Xbox version of Treyarch's Call of Duty 3.

In response, GamePolitics uncovered "that Activision has engaged in a pattern of such federal suits, in most cases garnering big settlements from individuals who are not represented by attorneys and who, as part of their settlements, agree not to discuss the case."

The report continues, "Activision's court filings do not specify the manner in which their copyrights were violated, or how they came to learn of the violations."

Activision's legal tactic may sound familiar to the one used by the Recording Industry Association of America (RIAA) against filesharers. GamePolitics found a solid connection to those suits: "Activision's lead attorney on the cases, Karin Pagnanelli, has worked on numerous file sharing cases on behalf of clients in the music business."

GamePolitics' sampling of settlements, reproduced below, follows... Read more

Game maker Sony Computer Entertainment and one-time employee David Jaffe have been named in a lawsuit that accuses both Sony and Jaffe of blatantly stealing the work of two others and using that information in the God of War video game series.

Plantiffs Jonathon Bissoon-Dath and Jennifer Barrette-Herzog say that they sent a screenplay entitled Olympiad and an original illustrated map to Sony Pictures Entertainment in 2002. Three years later, a Sony-produced game entitled God of War was on store shelves, which they claim to share many similarities with their work.

"God of War is a derivative work based on and incorporating protected material unlawfully copied by defendants from plantiffs' original works," reads the filing, which was acquired by GamePolitics. "The similarities between plantiffs' works and God of War include similarities of plot, relationships among major characters, themes, setting, mood, pace and dialogue that are unique and pervasive."

Accused similarities include:

• "The original story of how a champion saves Athens from destruction by the invading Spartan army that has been sent by Areas...Athens is backed by Zeus and Athena."
• "The God of War image of the Bottomless Chasm in front of Pandora's Temple were clearly derived [from Barrette-Herzog's original map]."
• "The Champion's family is hacked to pieces...In both stories the Champion feels partially responsible even though he is really not to blame... Read more

Microsoft has faced a great deal of criticism over the widely reported instability of its Xbox 360 console. Now, it's fighting back by firing an employee who contributed to an expose' uncovering the system's predilection for the "Red Ring of Death"--an error code on the Xbox 360's LED-lighted power button signaling that the console is inoperable.

Robert Delaware, a temporary worker for a game testing firm contracted to Microsoft, was fired by his supervising manager at Microsoft for talking without permission to VentureBeat, who broke the story on the system's problems.

Delaware was one of several who spoke to article author Dean Takahashi, but he was the only one not to do so on the condition of anonymity. "He fully knew the risk he was taking, based on multiple conversations I had with him about using his name," claimed Takahashi in a follow-up story today. At present, all references to Robert Delaware have been removed from the original VentureBeat story.... Read more

Sony is being taken to court over technology purportedly covered in a patent owned by Orinda Intellectual Properties USA, Edge has uncovered.

Orinda claims that patent 5,438,560 has been infringed, covers recording and reproducing optical discs such as CDs, DVDs, and Blu-ray Discs. The company has filed for an injunction stopping the production and sale of all Blu-ray players including PlayStation 3 systems. Orinda is also asking for "a reasonable royalty" from those Blu-ray players it wants to remove from sale.

Major console manufacturers are sued by supposed patent holders with some frequency, and Sony is no exception. In 2007, for example, Sony settled with force-feedback maker Immersion but had a lawsuit over the Blu-ray Disc format dismissed.

Nintendo and 54 developers and publishers have filed suit in the Tokyo District Court to block the marketing, sales and importation of DS flash cart devices, which allow users to easily load pirated DS software onto flash media for play in Nintendo's handheld.

The devices—such as the R4 Revolution for DS and CycloDS Evolution, among others—are similar in form to standard Nintendo DS cartridges, while featuring a small slot for MicroSD cards which can be loaded with pirated DS games, homebrew software, utilities and other data.

In a statement reproduced by Kotaku, Nintendo said that the devices are "causing severe damage to our company and software makers, and this is something that we cannot possibly overlook."

The company added that the devices cause harm to the growth of the game industry as a whole, and that steps must be taken regarding the legality of flash cartridges. Other companies participating in the suit include Capcom, Square Enix, SNK, and Sega.

Though the suit carries legal weight only in Japan, it seems likely that Nintendo may eventually pursue a similar action in North America—such devices have... Read more

MTV has chimed in on Japanese publisher Konami's recent lawsuit, which alleged that MTV subsidiary Harmonix's multi-instrument music title Rock Band (PS2, PS3, 360, Wii) violates Konami patents from 1999.

"Konami's actions are extremely surprising," an MTV spokesperson told to MTV News "Successful products such as 'Rock Band' can often become targets for baseless litigation. We have substantial defenses to this claim and intend to vigorously defend it."

In the lawsuit filed yesterday, Konami accused Rock Band of infringing on its patents for a "musical-rhythm matching game" and attempted to block sales of the game. The accompanying documentation included drawings of players using a guitar-shaped controller--a likely reference to Konami's series of Guitar Freaks games.

Prior to the debut of Rock Band last fall, Harmonix was responsible for the creation of the Guitar Hero series and worked with Konami on the Karaoke Revolution series. Konami is currently planning to release a Rock Band-esque title, Rock Revolution, on (PS3, 360, Wii, DS) this fall.

DrumMania and Guitar Freaks publisher Konami today filed suit against Harmonix parent company Viacom over patent violations related to Harmonix's rhythm title Rock Band.

Konami claims that the company's patent for a "musical-rhythm matching game," filed in the United States circa 1999, predates and supersedes Harmonix's 2007 patent filing for a "game controller simulating a musical instrument."

According to Bloomberg, Konami seeks cash compensation and an order to block the use of Harmonix's inventions. Viacom is waiting to receive the complaint before responding to the allegations.

Konami released the Japanese rhythm arcade games DrumMania and Guitar Freaks in 1999, with Guitar Freaks being initially ported to the United States later that year. The company is now planning to release its own Rock Band-style game titled Rock Revolution.

Following Nintendo's $21M patent lawsuit payout, an Illinois man has filed suit against the company alleging its Nintendo DS handheld violates a patent filed in 2003, according to a GamePolitics report.

Plaintiff John R. Martin's patent application describes "an electronic game device system [which] is switchable between an amusement mode and a gaming or gambling mode." The application also included an illustration of the device (pictured left).

While Martin does not directly refer to the Nintendo DS, the device also includes an "improved method of operating a touch screen on a CRT or ICD computer screen uses finger release as input registering," which describes input functionality similar to the handheld's touch screen. Martin's patent was filed in August of 2003.

Nintendo issued a response denying the allegations, stating that it had ... Read more