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On October 30, 2012, California Attorney General Kamala D. Harris issued a press release regarding a new enforcement effort involving California’s Online Privacy Protection Act,  Cal. Bus. & Prof. Code §§ 22575-22579 (“CalOPPA”). CalOPPA requires that “an operator of a commercial Web site or online service that collects personally identifiable information through the Internet about individual consumers residing in California who use or visit its commercial Web site or online service” conspicuously post a privacy policy that complies with specified requirements. In the case of an online service, the privacy policy must be “reasonably accessible … for consumers of the online service.” An operator of a mobile application (“App”) that uses the Internet to collect personally identifiable information is an “online service.” An App’s commercial operator will be required to conspicuously post its privacy policy so that it is reasonably accessible to the consumer. The AG confirmed that, having a website with the applicable privacy policy conspicuously posted may be adequate, but only if a link to that website is “reasonably accessible” to the user within the App. The AG warned that, under California’s unfair competition law, violations of CalOPPA may result in penalties of up to $2,500 for each violation, i.e., for each copy of the unlawful App downloaded by California consumers. Click here for a copy of the California Attorney General Kamala D. Harris’ press release and a sample non-compliance letter. 

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Binary world  A weekly wrap up of interesting news about virtual worlds, virtual goods and other social media.

 

 

Cypress Hill Singer’s Grand Theft Likeness Suit Put To Rest
A California appeals court refused Wednesday to revive a former Cypress Hill backup singer’s suit claiming that his likeness was misappropriated in a Grand Theft Auto video game, ruling the game’s creative elements transformed it into more than a mere imitation of the plaintiff.

VCs invest $150m in mHealth during Q3: YTD total hits $616m
In the third quarter of 2012, mhealth companies received $150.1 million in venture capital bringing the year to date total investment in the sector to $616 million according to data collected by Mobile Health Market News.

Feel The Force: Angry Birds Star Wars Tops U.S. App Store In Record 2.5 Hours, Says Rovio
Rovio’s Angry Birds Star Wars mash-up launched yesterday — and took just 2.5 hours to reach the number one spot in the U.S. App Store. In a blog announcing the figure, the games maker noted that the speed with which its latest Angry Birds incarnation rocketed to the top of the chart beat all its previous records.

Twitter unintentionally resets some passwords trying to plug breach
Twitter reset some passwords in an attempt to protect members whose accounts may have been compromised by a hacker, but inadvertently reset a larger number of accounts than needed, the micro-blogging service said Thursday.

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Binary world  A weekly wrap up of interesting news about virtual worlds, virtual goods and other social media.

 

 

Google Wallet targeted in patent infringement suit
Google is the target of a new lawsuit alleging its Wallet contactless payment system infringes on a patent issued in late 2007.

Site Unseen: Schools, Bosses Barred from Eyeing Students’, Workers’ Social Media
This year several states have sought to block personal passwords from inquiring principals and bosses.

California Targets Mobile Apps For Missing Privacy Policies
Mobile app developers that don’t post conspicuous online and in-app privacy policies will face $2,500 fine per download.

Girl Scouts Use Social Media, Mobile Tech to Break Cookie Sales Records
The ease of connecting with customers through email, texting and social media is one of the reasons the Girl Scouts are selling more cookies than ever before. Almost $800 million worth of Thin Mints, Samoas and other coveted flavors were sold during the 2011-2012 selling season.

Virtual worlds help autistic kids develop social skills
A new study has suggested that the benefits of virtual worlds can be used to help autistic children develop social skills beyond their anticipated levels.

 

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App Conference PIC.jpgThe App Conference and Global Mobile Internet Conference (GMIC) took place October 18-19-20 at the San Jose Hilton and San Jose Convention Center. This event brought together more than 100 speakers that addressed key components of app development, marketing and revenue in 6 conference tracks over 3 days. With an emphasis on cross platform development, revenue strategies, and global growth, the shows provided key insight and networking for both developers and business professionals. Pillsbury team members Jim Gatto, Ian Schick and Jessica Slater (pictured) attended the conference.

Jim Gatto participated on the “Going Global” panel. The panel discussed a broad range of international issues and answered a number of questions including: How should developers think about going global and implementing an international strategy? Is there a difference in the way apps are conceived, developed and marketed in each type of market that each can learn from? When is the right time to localize a successful domestic app for international audiences? What are some of the pitfalls to avoid when trying to market an app internationally, and who should you be partnering with for distribution? What cultural, educational and financial differences affect the way in which apps are adopted? How do you successfully launch an app for worldwide audiences?

Fellow panelists included executives from GAMEVIL, BlueRun Ventures and Tapjoy, Inc.

For more information, feel free to contact any member of the Pillsbury team.

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Thumbnail image for GDC PIC.jpgOctober 9-11, Pillsbury team members attended the GDC Online Conference in Austin. Pillsbury has been participating (attending, speaking, sponsoring) GDC Online for over four years and we wouldn’t miss the final year the show will take place in Austin, Texas.

The conference brings together industry professionals and game developers for three days of sessions, discussions and networking opportunities. This year the conference boasted over 120 lectures, keynotes, panels, roundtables and tutorials. Topics focused on the development of connected and cloud gaming including social network titles, free-to-play web games, kid-friendly online titles, large-scale MMOs, and much more. This year’s conference attracted over 3300 attendees.

Pillsbury team members Ben Esplin (pictured) and Brad Blaise met with dozens of professionals and game developers. The most common topic of conversation was intellectual property (IP) protection for games. Many misperceptions cause developers to miss great opportunities to secure IP protection for their ideas. In part, this is due to a lack of a true understanding of what is protectable and/or not working with an attorney with the relevant expertise. Games are all about IP. Why make it unnecessarily easy for others to free ride on your hard work and creative genius. Check out our IP Protection for Games piece to learn more. Contact Ben, Brad or anyone of our team members should you have any additional questions.

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Binary world  A weekly wrap up of interesting news about virtual worlds, virtual goods and other social media.

 

 

Ubisoft Files Lawsuit against BEP Music over Music Game
Publisher Ubisoft has filed a $1 million lawsuit against BEP Music LLC in Superior Court claiming that it created an iOS versions of a popular Wii game, which its client refused to acknowledge as per a licensing agreement the two companies entered into in June of 2011.

Judge dismisses ex-Arizona State football player from Ed O’Bannon lawsuit vs. NCAA
A federal judge today dismissed former Arizona State football player Ishmael Thrower from the Ed O’Bannon lawsuit brought by ex-athletes against the NCAA, EA Sports and College Licensing Company over the commercial use of their images and likenesses.

Harrods targets teens with fashion push
Luxury department store Harrods is partnering with online community Stardoll as part of its strategy to target a younger audience of fashion fans.

Zynga Just Shut Down Boston Office, Laid Off 100+ Employees From The Ville And Bingo Teams In Austin
Possibly trying to hide the grim news by announcing it during Apple’s event, we’ve just independently confirmed that Zynga has shut down its Boston office and laid off 2/3s of the employees in its Austin office, including cuts to The Ville and Bingo teams. We’ve now confirmed the initial report from Justin Maxwell. We’ve also just heard Zynga may have an all-hands meeting this afternoon.

Boarding pass barcodes ‘can be read by smartphones’
A vulnerability in US domestic airline boarding pass barcodes could allow travellers to bring unauthorised items on board, says a security expert.

Utherverse nabs a patent on scalable virtual worlds that can host unlimited users
Utherverse is announcing today that it has won a patent to build a “scalable” virtual world, or one that can support an unlimited number of players in a single region of an online place. That could allow virtual worlds to achieve a critical mass for events like a convention or a concert.

Zynga Makes Its First Move Into ‘Real Money’ Games, Partners With Casino Gaming Giant Bwin.Party
I’ve a feeling we’re not in Farmville anymore. Zynga announced today its first concrete move into “real money” gaming, in other words, gambling-oriented games that let people both win and lose actual cash with each other.

 

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In a series of important rulings, the National Labor Relations Board (“NLRB”) has provided guidance regarding the extent to which private employers may regulate aspects of an employee’s social media activities consistent with the National Labor Relations Act (“NLRA”).  The NLRA protects employees’ rights to engage in “concerted activity” for the purpose of collective bargaining, or for other mutual aid or protection, and prohibits employers from interfering with, restraining, or coercing employees who are exercising rights guaranteed under the NLRA. In light of this recent guidance, in addition to recent judicial and legislative developments, it is imperative to have social media policies that clearly define what employees can and cannot do when using social media for both professional and personal purposes. But as the NLRB rulings make clear, a company’s policy must also respect certain employee rights or it may be deemed at least partially unenforceable.

NLRB Rulings

In their first two rulings, the NLRB found that the two at-issue social media policies contained overly broad language regarding the type of social media activity that was regulated by the employer and failed to carve out an exclusion for communications protected under the National Labor Relations Act (“NLRA”).  One policy, in relevant part, stated that employees should be aware that statements posted electronically (such as to online message boards or discussion groups) that damage the company, defame any individual or damage any person’s reputation or violate the policies outlines in company’s employee agreement, may be subject to discipline, up to and including termination of employment. Because the policies could reasonably be construed to prohibit activity protected under Section 7 of the NRLA (e.g., concerted communications) and “would reasonably tend to chill employees” in the exercise of their rights to engage in “concerted activity” as set forth in Section 7 of the NLRA., the policies were deemed unlawful.

In a separate ruling, the NLRB opined that an employee may be terminated for activity that is regulated by an employer’s lawful social media policy, including posting an entry on the employee’s Facebook page.  The at issue Facebook post was not part of any communication with another employee, and it did not have a connection to any of the employee’s terms and conditions of employment.  As such, the NLRB found that the post did not fall under the umbrella of protected activity set forth in the NLRA. 

Recommendations Regarding a Corporate Social Media Policy

The recent NLRB rulings, in addition to recent judicial and legislative developments, highlight the need for companies to utilize social media policies with clear, narrowly tailored language to demarcate the boundary between acceptable and unacceptable use of social media forums.  When constructing a social media policy, it is also important to balance numerous factors including, for example, protecting concerted employee activity under the NLRA, applying anti-violence, harassment and discrimination policies, protecting company confidential information, and avoiding undue responsibility for an employee’s own statements.    

Employers are encouraged to explicitly set forth exceptions in their social media policies for activities protected under the NLRA.  These exceptions may be included directly in a social media policy or in another employee communication in which the policy is included or incorporated by reference (e.g., an employee handbook). 

Further, prohibiting an overly broad range of activities in a social media policy may raise red flags with the NLRB.  Examples of such broad activity include “talking badly” about an employer, posting information that “damages” or “disparages” the employer, disclosing “inappropriate” information about an employer, etc.  It is currently unclear if an explicit exception for protected activity may allow for broader employer regulation of social media activity.  Even when including an explicit exception for protected activity, employers should still aim to avoid such broad language and provide examples in their policies to give context to what kinds of social media activity fall under a company social media policy.  

Employers are also encouraged to apply anti-violence, harassment, and discrimination policies to social media activity via their social media policies.  A thorough social media policy should include confidentiality and proprietary information restrictions as well.  Further, social media policies should require employees to state that their opinions are their own (and not the opinions of their employers) when disclosing their professional identity via social media participation. As mentioned above, these employee regulations may be included directly in a social media policy or in another employee communication in which the policy is included (e.g., an employee handbook).

For a more detailed discussion of the NLRB rulings and best practices, please see our client alert entitled First NLRB Decisions on Social Media Give Employers Cause to Update Policies, Practices posted October 10, 2012. For additional information on recent judicial and legislative developments, please see our client alert entitled Drawing the Line Online: Employers’ Rights to Employees’ Social Media Accounts posted October 16, 2012.

The legal requirements related to employer regulation of employee social media activity are continually changing.  For help drafting a social media policy contact a knowledgeable attorney.

 

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Binary world  A weekly wrap up of interesting news about virtual worlds, virtual goods and other social media.

 

 

Video game tax break makes Quebec an industry hub
Sixteen years after Quebec’s government made a conscious decision to make the province a hub for multimedia firms and put up the money to stoke their growth, the effort has spawned a thriving industry of about 50 companies publishing video games and 30 others making the tools that support them. Total employment in the sector tops 8,000 workers.

Zynga Claims Ex-Staff Member Took Trade Secrets to Rival
Online game developer Zynga Inc. on Friday went after a former manager in California court, accusing its onetime employee of breaching a contract by defecting to a competitor with valuable trade secrets concerning Zynga’s product line and business strategies.

Beyonce’s Deadline Claim Attacked in Video Game Suit
Pop singer Beyonce can’t disavow a multimillion-dollar video game development contract because she kept negotiating long past the cutoff deadline she cited as her reason for pulling out of the deal, the developer’s attorney told a New York state appeals court Wednesday.

NJ Moves Ahead With Sports Betting Law Despite Legal Battle
Forging ahead with legalized sports betting despite a lawsuit brought by professional sports leagues and the NCAA, New Jersey said Monday that it would begin accepting applications from racetracks and Atlantic City casinos to offer such gambling.

Zynga revs up mobile ads with Honda campaign
The “It Starts With You” advertising promo will offer in-game rewards to Words With Friends and Scramble With Friends players.

Investors Steering Dollars Away From Social Games Ever Since Zynga’s IPO
Zynga’s public offering 10 months ago marks the peak for social gaming investments, with venture capital moving sharply away from the sector ever since.

Fashion Industry Puts On Its Game Face
As fashion houses are presented with the ever-challenging goal of achieving and maintaining brand recognition, many are now attempting to engage consumers in both the real and virtual worlds. Gaming represents one nontraditional avenue that has undergone recent growth, as brands find value in connecting with existing and potential consumers through interactive online means.

 

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Binary world  A weekly wrap up of interesting news about virtual worlds, virtual goods and other social media.

 

Will Asian online game publishers Nexon and NCSoft buy blockbuster publisher Valve?
Nexon and NCsoft, two major Asian online game companies, are reportedly in talks with U.S. gamemaker Valve to buy the company for more than $893 million, according to a major Korean publication.

Social Gaming to Reflect Real Money Gambling
A Newzoo trend report published in February 2012 that investigated casual social games certainly threw up some interesting results. Of the most significant figures to those trying to turn a profit through social games was the percentage of casual game players that were payers – in other words, users who were prepared to part with their hard-earned cash.

Zugara’s virtual dressing rooms take the X factor out of online shopping
Zugara was granted a patent today for its augmented reality technology that creates virtual dressing rooms for online consumers. The Webcam Social Shopper seeks to alleviate the element of the unknown from online shopping by enabling consumers to virtually try on clothes.

Smartphone apps become ‘surrogate therapists’
In the age when there’s an app for everything, it’s no surprise that there are a lot of smartphone tools out there claiming to help people cope. From informational resources to interactive mental wellness programs, there’s plenty out there to choose from.

Facebook gift-giving moves from virtual to actual goodies
It’s only September, but Facebook is already getting into the gift-giving spirit with a new feature that lets you send physical items such as cupcakes, gift cards, stuffed animals, and magazine subscriptions to your Facebook friends. The new feature, dubbed Facebook Gifts, recently started rolling out to profiles and is available only in the U.S. for now.

 

 

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Binary world A weekly wrap up of interesting news about virtual worlds, virtual goods and other social media.

 

 

 

Child’s Play: Food Makers Hook Kids on Mobile Games
U.S. food companies are reaching children by embedding their products in simple and enticing games for touch-screen phones and tablets. The new medium is far cheaper than Saturday morning TV commercials and could prove as effective.

Facebook updating its mobile apps every 1-2 months from now on
In an engineering blog post, Facebooker Christian Legnitto, who’s responsible for pushing out mobile code for the company, says that Facebookers working on mobile have been taking the same doubled-down approach to release cycles that the rest of Facebook’s engineers use for the website code pushes.

NASA, Angry Birds and the Question of Gamification
The addicting power of games, and their proliferation into each of our pockets, has created a new opportunity for organizations with a message. Each year, companies pay millions for product placements in videogames. Now, the public sector is finding creative ways to get in on the act too. 

Online push transforms Japan gaming
This year Gree, which was founded by Asia’s youngest self-made billionaire, Yoshikazu Tanaka, 35, is continuing its march on video games veterans such as Sony and Sega. But now its target is not their floor space but their core demographic of hardcore game players.

Social Media Week Chicago to Present 90 Free Events
Social Media Week Chicago 2012 will host a lineup of 90 free events across 40 venues throughout the city that explore the social, cultural and economic impact of social media from Sept. 24 — 28. The event is organized by Zocalo Group and the Chicago Tribune.

3 more companies approved for online poker
Nevada gambling regulators have approved licenses for three companies to run Internet poker sites in the state.