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Marvel Sues NCSoft

by Maarten Goldstein, Nov 12, 2004 6:37am PST
Related Topics – MMO, Cryptic Studios, NCSoft, Games: PC

This USA Today story reports that comic book company Marvel Enterprises is suing NCSoft and Cryptic Studios, saying their MMORPG City of Heroes violates Marvel copyrights. The company particularly isn't too pleased with the ability to create Hulk and Wolverine- like characters in the game.

Marvel claims the firms' are responsible because the game is played on servers operated by the companies, raising the question of whether a company is responsible for their customers' actions on its computer server. Marvel also claims the companies have disrupted its "existing and future" business prospects for licensing its characters in video games similar to City of Heroes.


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52 Threads | 247 Comments
  • #206
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    By: syllogistic x
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    From the standpoinr of secondary copyright infringement, it looks like there are 2 principal issues to be resolved in this case.

    First, does the user creation of virtual characters resembling Marvel superheoroes constitute direct infringement? NCSoft can make a reasonable argument for fair use, but Marvel can also argue that this would harm their ability to exploit their copyrights in derivative markets such as computer games. The outcome of this inquiry will depend heavily on the facts, but if this is determined to be fair use, the issue of secondary liability is moot.

    Second, To what extent does the Sony-Betamax case apply? There, the Supreme Court ruled that product providers cannot be liable for the direct copyright infringements of their users, as long as the product is capable of "substantial noninfringing uses." I think there is little doubt that the product here meets that standard. However, Sony may not fully shield NCSoft because they are providing both a product and service. If this suit was filed in the 9th Circuit (where Napster and Grokster were tried), NCSoft's operation of central servers for the game may be the critical issue with respect to contributory liability. The question of centralized control was ultimately what the P2P cases turned on.

    Nov 12, 2004 12:34pm PST
  • #168
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    By: bored This person is cool! x
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    Yes and we all know Marvel doesn't copy other publishers characters. Note to Marvel just go print up another Xmen or Spiderman series.

    The last line of the news posting says it all here
    "Marvel also claims the companies have disrupted its "existing and future" business prospects for licensing its characters in video games similar to City of Heroes."

    Thats what it comes down to, they want to license their likenesses since thats all they have left, their books have been horrible the past 12 + years and only survive on licensing. They are pissed someone beat them to it where they couldn't slap their brand onto the game. Memo it's the players that make up their characters to look like Marvel toons, they aren't stock archtype setups. I made my first toon to look like Grifter from the old Wildcats woopie do.

    Anyways just go look at their financials from the past 10 years or so and they only generate revenue off of their branding, not creating anything new. They tried to become their own distributor, to stores, a few years ago and that failed horribly. Unlike DC or smaller indy publishers they haven't had a new idea in years.
    Nov 12, 2004 10:47am PST
  • #151
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    By: Yabrodan x
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    If Marvel wins won't CoH have to pretty much shutdown I mean they give you a bunch of generic super hero parts and you make a hero but you could probably create ripoffs of tons of characters and going through and blocking all the combinations would probably be impossible with the amount of superheros out their. Sucks I guess Marvel had to do it or their characters become public domain but it is a shame. Comic and Video game industry should coporate more both seem to be a constant media scape goats for the woes of the world, Can't we all just get along.
    Nov 12, 2004 10:18am PST
  • #107
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    By: amankhan This person is cool! x
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    Bit of trivia for anyone who's reading up on comic book lawsuits & what-not.

    Marvel owns the rights to the names "Hulk Hogan", "Hulkamania", "Hulkster", and all other Hulk-related names that the wrester uses.

    http://www.newsarama.com/forums/showthread.php?s=&threadid=16417

    Things get even more interesting with this bit:

    "So – there’s been no more Hulk Hogan since June of 2003, and even by Marvel’s standards, that’s before the contract with the WWE ends – so what’s the problem? The library. The WWE is in the planning stages of a massive exploitation of its library of wrestling events, which will include a video-on-demand service featuring, among numerous others, matches between Hulk Hogan and other wrestlers. Marvel has informed the WWE that it can no longer use the agreed upon names after the expiration of the 1985 contract, the term of which, according to Marvel, expired on July 6th of this year. "

    And its still going on now:

    "Both Marvel and the WWE will take part in a case management conference on September 17th in regards to the WWE vs. Marvel issue. Marvel’s suit against Bollea continues, with all discovery due to the Court by October 31st, 2004."
    Nov 12, 2004 8:08am PST