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Sony Argues Digital Games Can't Be Owned in Court Filing

Created at 31 Aug · 3:51 PM1 source↑ Market-relevant
IN SHORT

Sony told a federal court that consumers do not reasonably expect to own digital games they purchase, as evidenced by the ability to buy the same game multiple times. The company's argument is part of its defense against a proposed class-action lawsuit alleging deceptive practices.

Key Numbers

August 21date of Sony's court filing
11 daystime between game purchases
January 2025effective date of California disclosure law
$69.99price of Resident Evil Requiem
July 1date Sony announced halt to physical disc production
January 2028date Sony will stop producing new physical game discs

Who's Involved

Sony
argued in court that digital games are licensed, not owned
Jason Mendoza
plaintiff who purchased Resident Evil Requiem on February 14
Edward Heycock
plaintiff who purchased Resident Evil Requiem on February 25
California PlayStation customers
filed a proposed class-action lawsuit against Sony
Sony Argues Digital Games Can't Be Owned in Court Filing

↳ Why This Matters

This legal argument by Sony could set a precedent for digital ownership rights in the gaming industry, impacting how consumers perceive and interact with digital purchases across various platforms.

Key facts

  • Sony argued in a federal court filing that reasonable consumers do not believe they own digital games purchased on the PlayStation Store.
  • The company's defense is in response to a proposed class-action lawsuit filed by four California PlayStation customers.
  • The lawsuit alleges Sony's checkout process violates California's false advertising law by implying ownership when only a license is granted.
  • Sony's filing points to the ability to purchase the same digital game multiple times as evidence that ownership is not expected.
  • Sony is seeking to have the dispute resolved through private arbitration, as stipulated in its terms of service.

Sony has asserted in a federal court filing that consumers do not reasonably expect to own the digital games they purchase for their PlayStation consoles. The company's argument, made on August 21, is part of its defense against a proposed class-action lawsuit brought by four California PlayStation customers in June.

The lawsuit alleges that Sony's checkout process, using buttons like "Buy Now" and "Confirm Purchase," violates California's false advertising law, which took effect in January 2025. This law prohibits sellers from using terms that imply unrestricted ownership unless a clear disclosure states the transaction is a license.

Sony contends that its terms of service and software product license agreement, accessible through fine print, already inform customers that they "do not own the product" and that the software is "licensed to you, not sold." To further support its position, Sony cited an instance where one plaintiff, Jason Mendoza, bought "Resident Evil Requiem" on February 14, and another, Edward Heycock, purchased the same game for $69.99 just 11 days later on February 25. Sony's lawyers argued that if the first buyer truly owned the game, the second could not have bought it, making the claim of reasonable consumer belief in ownership implausible.

In addition to its arguments on ownership, Sony is requesting that the judge compel the dispute into private arbitration, citing the terms of service that users agree to, which mandate individual claims settlement through arbitration and include a class action waiver. This move aims to avoid a jury verdict and potential class action.

This legal battle comes as Sony announced on July 1 that it will cease producing physical discs for new PlayStation games starting January 2028, making digital purchases the sole method for acquiring new releases. Reports also suggest Sony Group is planning a dollar-denominated stablecoin for its digital ecosystem.

Frequently asked questions

Sony is arguing that consumers do not reasonably expect to own digital games they purchase, as they are only granted a license to use the software.

The lawsuit alleges that Sony's "buy now" and "confirm purchase" buttons are deceptive because they imply ownership when only a revocable license is granted, violating California's false advertising law.

Sony points to the fact that the same digital game was purchased by two different individuals on separate dates, suggesting that ownership is not conferred as it would prevent subsequent purchases.

Sony's primary request is for the dispute to be sent to private arbitration, as stipulated in its terms of service, which also includes a class action waiver.

What Happens Next

01The judge will rule on Sony's request for arbitration.

How It Developed

Sony filed a court document arguing consumers do not own digital games.
The filing cites a case where the same game was purchased 11 days apart as evidence against ownership claims.
A proposed class-action lawsuit alleges Sony's checkout process violates California's false advertising law.
Sony claims its terms of service and license agreements clearly state digital goods are licensed, not sold.
The company is also requesting the dispute be sent to private arbitration based on its terms of service.

Sources

T1
Sony Argues in Court That Digital Games Can't Be OwnedDecrypt

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