A Chinese regulatory authority has ordered World of Warcraft's Chinese licensing partner NetEase to cease operating Blizzard's MMORPG in the country, Reuters reports, though it is yet unclear what will happen or whether it has the authority to do so.

The General Administration of Press and Publication's order that NetEase suspend account signups and cease charging is due to the firm collecting fees and allowing registrations during an open beta which began in July, according to Times Live.

The beta ran when NetEase took over from previous licensee The9 and was awaiting approval for the relaunch from the Ministry of Culture--a separate entity which recently took over aspects of online game regulation from GAPP. Blizzard ultimately had to institute several changes--including replacing dead players' skeletons with sandbags and red blood with black--before World of Warcraft relaunched in China in September.

"The chaos is mainly due to the vague demarcation of responsibilities between GAPP and the Ministry of Culture," said Chinese analyst Liu Ning. "It is not yet certain what will happen--to be honest, it depends on who will finally win: GAPP or the culture ministry."

The Federal Trade Commission today announced the latest revisions to its "Guides Concerning the Use of Endorsements and Testimonials in Advertising," revealing that "bloggers" and other "word-of-mouth" endorsers must now disclose "connections that consumers would not expect," such as free product or cash in exchange for review.

The announcement did not provide a specific definition of "blogger," leaving it unclear what effect this will have in the arena of video game reviews, news, and professional blogging in general--a field where free review copies and paid trips are commonplace. It was likewise unspecified how writers are to properly disclose "material connections."

However, it was noted that these guidelines do not apply towards "traditional media"--described as "a newspaper, magazine, or television or radio station with independent editorial responsibility"--as the Federal Trade Commission believes the issue lies primarily with "consumer-generated" content and personal postings.

"The post of a blogger who receives cash or in-kind payment to review a product is considered an endorsement," declared the FTC. "And a paid endorsement - like any other advertisement - is deceptive if it makes false or misleading... Read more

Though the legislation passed the Senate and House of Representatives with much political support, GamePolitics reports that Utah governor Jon M. Huntsman Jr. has vetoed a controversial amendment to the state's "Truth in Advertising Act."

Drafted with the help of outspoken anti-game activist Jack Thompson, the legislation would have seen stores fined if they established, advertised and then violated a policy to keep goods with age recommendations--games, movies, etc.--out of minor's hands.

As stores would not be fined if they did not adopt such a policy, many feared that the legislation would actually cause retailers to ignore recommended age restrictions, such as the ESRB content ratings found on all game boxes in North America.

Explaining his decision, Huntsman said that the bill would have most likely been found unconstitutional and would had discouraged "age appropriate labels... Read more

Back in June, Shacknews reported on the effects of popular virtual currencies on the Chinese economy. The Chinese government has responded by taking a piece of that cottage industry for itself: the nation is instituting a 20% personal income tax on profits made from virtual currencies.

The tax, announced today by China's State Administration of Taxation, "specifically takes aim at those who buy virtual currency from gamers and surfers and sell it to others at a mark-up," according to a Wall Street Journal report noticed by Gamasutra.

Under the new law, the 20% tax will be levied on individuals--not corporations--who profit from selling virtual currencies. The policy applies to gold farmers in MMOs like World of Warcraft as well as those in China's booming market for Web-based virtual currencies, such as QQ Coins used in Tencent's popular instant messaging program QQ.

The tax has met a lukewarm reception among Chinese internet users, to the surprise of few. However, one of the detractors' arguments stands out: valuing virtual currencies for tax purposes may prove difficult, as the Chinese government has banned pegging virtual currencies to the yuan. "It's difficult to prove the original value of virtual currency," said a blogger in the Journal's report.

This Wednesday, California lawmakers will attempt to resurrect the violent video game legislation that cost the state $282,000 after it was ruled unconstitutional in 2007.

Senator Leland Yee penned the law, which mandates that retailers restrict sales of violent video games to only those over the age of 18, with games that fall under the definition of "violent" forced to sport an prominent "18" sticker on their packaging.

According to the law, any game that contains "serious injury to human beings in a manner that is especially heinous, atrocious, or cruel" would fall under its jurisdiction.

"This is the same technology the armed forces use to help soldiers kill the enemy," Yee explained to the San Jose Mercury News. "All we're saying is, 'Don't sell it to kids.'"

In his 2007 ruling, Judge Ronald Whyte declared that the law's definition of violence was too broad, noting that it could apply to some classic literature, and questioned the tenuous link between violent video games and violent behavior. Following Whyte's decision, California governor Arnold Schwarzenegger vowed... Read more

Sidhe Interactive, makers of the platform-ish racer GripShift (360, PS3, PSP), have received a grant from the government of New Zealand for an unspecified amount.

Gamasutra reports that Sidhe will use the money from TechNZ--an investment program from New Zealand's Foundation for Research, Science and Technology--to develop a multiplatform framework for use in future games.

"We're acutely aware of the requirements of cross-platform development and the need to create reusable technology to lower development costs, reduce risk and improve quality," said Tyrone McAuley, a co-founder of Sidhe.

This isn't the first TechNZ grant that Sidhe has received. The company used a 2004 award to develop a PSP game, presumably the PSP version of GripShift which came out in 2005.

The American Library Association today announced that hundred of libraries across the United States will celebrate the first-ever National Gaming Day on November 15, 2008.

The initiative will celebrate "the popularity and educational value of video and board games" through a national video game tournament. On the board game side of things, libraries will band together in an attempt to create a new record for the largest amount of people simultaneously playing the board game Pictureka.

Those interested in National Gaming Day are urged to contact their local library branches, some of which may actually carry games, for details on local festivities and celebrations of gaming.

The Entertainment Software Association today praised Congress and President Bush for signing the Prioritizing Resources and Organization for Intellectual Property Act of 2008 (PRO-IP) into United States law.

The ESA is particularly thrilled that PRO-IP will "enhance the ability of U.S. law enforcement to address serious intellectual crimes," such as piracy, by creating a new position in the presidential cabinet for an intellectual property enforcement coordinator.

"Piracy is an enormously profitable undertaking for criminal organizations. Disabling those organizations requires a coordinated and cross-border approach to enforcement, which this legislation clearly promotes," stated ESA CEO Michael Gallagher.

"Effective enforcement of IP laws helps protect this engine of economic growth," he added. "More legitimate game sales mean more game-related jobs up and down the value chain."

But while PRO-IP has been praised by the ESA, the Recording Industry Association of America (RIAA) and U.S. Chamber of Commerce, not everyone is happy with it, including the American Library Association, Public Knowledge and Electronic Frontier Foundation.

"It would've been nice to have something to benefit the public and artists instead of big media companies," Public Knowledge communications director Art Brodsky told CNET, as noticed by Gamasutra.

Update: Dead Space is not yet banned in Germany, as the game is still under review at ratings board USK, according to Eurogamer.de. (Link is in German.)

Original Story: EA Redwood Shores' sci-fi survival horror title Dead Space, which was recently pushed up twice for finishing early, has hit a snag: the game has been outright banned from sale in Japan, Germany, and China, reports Destructoid relaying the Dead Space site.

According to the report, publisher EA has not yet announced whether or not it will re-work the game for release in those countries. On our shores, the game is still set for its new early launch date of October 14 on Xbox 360 and PlayStation 3. A PC version will arrive on October 20.

Germany is no stranger to video game censorship, as the country often receives versions of games with violent content toned down. China is also moving in a similar direction, but Japan--a country that produces violent games like Capcom's Resident Evil and Dead Rising--may come as a surprise to industry watchers.

As part of its ongoing attempts to protect youth from video games, the Thailand government has officially banned five video games from sale within the country and established a set of guidelines to help prevent access to "dangerous games."

The government claims that gaming is "a problem which is obsessive and has an (adverse) effect on the behavior of children and teens," going by a translation of an official press release by CNET Asia writer Jesada Chandraprasert.

The five banned games are as follows:

• Hitman
• 300
• Killer 7
• Hitman: Blood Money
• 50 Cent Bulletproof

The above represents almost half of a Thailand-issued list of dangerous and banned video games. As GamePolitics notes, Thailand's list curiously mirrors an earlier list of influential violent games that was penned by Detroit prosecutor Kym Worthy.

While Grand Theft Auto IV is not technically banned in Thailand, the government has essentially banned the game by halting its sale and distribution... Read more

Over 4 million of China's youth are addicted to what the state deems "unhealthy" online games, claims a Chinese lawmaker.

The 4 million represent ten percent of Chinese internet users under 18, according to the AFP. The term "unhealthy games" could refer to any number online games including Blizzard's World of Warcraft, which boasts millions of subscribers in China. The same games were called "spiritual opium" by another Chinese lawmaker earlier this year.

In the announcement, the Chinese government calls for hard-coded time limits in games and stricter content monitoring in games. Previously, the government has tried a number of methods to curb internet addiction, including cybercafe age and time limits.

Game makers should be prosecuted for the criminal activities of players that are inspired by game content and actions, according to a Thailand government official.

The response stems from the recent murder of a Thai cab driver, with the 18-year old murder suspect telling police he was attempting to recreate a scene from Rockstar's Grand Theft Auto IV. The game has since been pulled from store shelves in Thailand.

"When a player copycats a crime he or she sees in the game, the game maker should be prosecuted," Somchai Jaroen-amnuaysuk, deputy director of Thailand's Welfare Promotion, Protection and Empowerment of Vulnerable Groups Office, told AsiaOne, as relayed by GamePolitics.

"Prosecutions will automatically force game makers to act more... Read more

Residents of Centerville, Ohio can now borrow PlayStation 2, PlayStation 3, Xbox 360 and Wii games from their two community libraries, free of charge.

Initial offerings include Kung Fu Panda, Madden NFL 08, Iron Man, Guitar Hero, Sonic Heroes and Final Fantasy titles, according to the Dayton Daily News. The institution will focus on family games and games for players over the age of 10.

Library members can keep the title for up to a week, with one extension available.

The impetus behind the program came from patron requests and the growing video game industry. Centerville marks the fourth library in Ohio to begin offering games, with directory Cindi Klinck stating that it "strives to be on the leading edge of library service."

The US International Trade Commission said that it will launch a patent infringement investigation into technologies related to the Blu-ray format, GameSpot reports.

The Commission noted that the investigation will be focused on "certain short-wavelength light emitting diodes, laser diodes, and products containing same." It named several companies in the investigation including Sony, which created the Blu-ray format, as well as Samsung, Sharp, Toshiba, Nokia and several others.

Blu-ray was crowned the winner of the "format wars" following hardware manufacturer Toshiba's announcement last month that it would cease production of HD DVD players and recorders. Currently, Sony's PlayStation 3 is the only game console that supports the Blu-ray format.

The investigation was sparked by a complaint filed on February 20 by Gertrude Neumark Rothschild, who claimed that laser diodes imported for use in Blu-ray and other high-definition disc players infringe on one of her patents. Rothschild requested that the Trade Commission issue cease and desist orders to all the companies named in the investigation.

Silicon Knights received $500,000 in funding from the Canadian government to develop a prototype game, reports Yahoo.

The funding comes by way of the Ontario Media Development Corporation, an agency of the Ontario Ministry of Culture that works to stimulate economic development opportunities for the province's cultural media industries. The ODMC also announced its intention to invest in fellow Ontario-based developer Digital Extremes, which produced the first Xbox entry in Epic's Unreal Championship series.

The prototype game is said to be an action-based psychological thriller, tentatively scheduled for completion in 2010 for all next-gen systems, but no further details were mentioned. The prototype may be the next game in the Too Human... Read more

France has granted accomplished game designer Peter Molyneux membership in the government's distinguished Chevalier de l’Ordre des Arts et des Lettres (Knighthood in the Order of Arts and Letters), recognizing him as a significant contributor in the field of art and literature. Molyneux is the founder of the now-defunct Bullfrog Productions as well as Lionhead Studios, acquired by Microsoft last year. Amongst his long list of design credits are Populous, Syndicate, Black & White, Fable, and the upcoming Fable 2 (preview).

"I am particularly glad to salute today a veritable visionary, who shows for every creation of his own how video games have their place in this stateroom," commented France's minister of culture, Renaud Donnedieu de Vabres.

In spite of the prestigious award, Molyneux remained modest. "I would also like to say that I see this as a credit for everyone at Lionhead Studios, all our games are a team effort," he said. "I am just the figurehead. It is fantastic to see video games honoured in this way."

Molyneux represents the latest in a growing number of game designers to be recognized by France's Order of Arts and Letters. Last year, Mario and Zelda creator Shigeru Miyamoto, Rayman and Beyond Good & Evil creator Michel Ancel, and Alone in the Dark creator Frederick Raynal were honored with the same distinction.

The outspoken Jason Della Rocca, director of the International Game Developers Association, has an article up entitled "Salvation vs. Condemnation: The Two Faces of Government." He discusses the internal battle governments face when dealing with a young yet explosively profitable industry; with one hand, they welcome with support the economic benefits it can bring, and with the other they seek to limit and contain it. Della Rocca points to various contradictions stemming from governments across the world, such as the statements by British Prime Minister Tony Blair and Culture Minister Kim Howells which respectively praise the UK's games industry and launch a moral attack on games as a whole.

As an example closer to home, the state of Louisiana is fighting the same ideological battle. Just as Louisiana governor Kathleen Blanco approved the state's Digital Media Act to support game and new media production in the state via tax breaks and other incentives, Louisiana State Senator David Cain (R-Dry Creek) announced that he plans to introduce anti-game legislation in the 2006 session.

The article does not go particularly in-depth, and occasionally veers a little too much into righteous attitudes. It's a nice quick read, however, giving a broad perspective on the attitudes of governments worldwide on this developing medium.

Though "watching with attention and concern", the French government has no plans to intervene in the fate of French publisher Ubisoft according to a Reuters story. This in response to the recent acquisition of 20% of Ubisoft shares by Electronic Arts, with a full takeover expected at some point. It's also been said that French media group Vivendi Universal was looking to help out Ubisoft somehow, but the company has denied it's been talking with Ubisoft.

Looks like the ever wise FCC is mulling over some possible changes to the DSL markets which could affect quite a few people here. What it basically amounts to is possibly no longer requiring phone companies to license out their lines to competitors. You can read about it here and some more here. Thanks Do_Or_Die

"We are faced with the grim reality that the government likely will not, and probably cannot, cover much of the hefty price tag associated with building out one or more broadband networks that can eventually serve all Americans," Powell said yesterday. "Thus, our greatest challenge in promoting broadband is deciding how best to stimulate enormous private sector investment." Consumer groups and independent Internet access providers argue that this policy will leave the country with a tiny number of broadband providers that would wield tremendous power over the availability of Internet service and content. Localities typically are served by only one cable company and one telephone carrier. The nation has only two major satellite providers, and they are seeking to merge.

This story on ZDNet examines the possibilites and justification of a government regulations being implemented for broadband internet connections. Mostly because of the ISP shutdowns shafting people. The Rhythms guys and their DSL lines and most recently Excite@Home.

"We think of network access as a utility like the telephone or power, and in fact network access is just as important to our livelihood and household operation as those other utilities," said Ribble, who works for chipmaker Intel. The outage, he said, "virtually ground our work lives to a stop."

It's pretty lengthy and interesting discussing availability, government response, and all kinds of other stuff. Plus this news item has the added bonus of pushing my goofup on that Alice story down a little ways on the page.