Posts Tagged ‘lawsuit’

33rd America’s Cup: Thanks God it’s Over

So the 33rd America’s Cup is finally run, congratulations to Oracle who crushed the Swiss team Alinghi.

Ironically, despite writing about the shameful display of court action (that would continue for a long while) a couple of years ago, I almost missed that the race has taken place last week.

I wasn’t alone.

The America’s Cup used to be one of the most popular sailing contests the layman knew of, and being Swiss, I had been caught up in the enthusiasm of the 2003 win that helped capture the people’s imagination here.

When the next edition was held in Summer 2007 and Alinghi successfully defended their title, the mood in the country was the one you’ll see in any place when your favourite sports team is in a final and has solid chances to win the contest, no matter the sport itself.

At my workplace, for instance, we had an overhead projector showing all races live, and most of my co-workers (the vast majority of them who wouldn’t otherwise give a damn about sailing, and for good reason – for those among us who aren’t sailing aficionados, watching a regatta on TV is often barely more exciting than watching grass grow) would regularly mill around between their desk and the recreation area to watch the races, or at least part of it.

The contrast couldn’t have been more stark with what happened last week. Before even the first race saw our “champion” Alinghi severely spanked by its challenger, you’d be hard-pressed to find people giving a damn. The talk of last week, in terms of sports, was about the Olympic games and in what disciplines “we” would have chances to bring home a medal (incidentally, at the time of this writing, Switzerland didn’t just win the first gold medal of the games, we secured our third gold a few moments ago, marking this the most probably only time we’ll be #1 on the medal table. Woot. Ahem. Where was I? Oh yes).

Only the one colleague I know for participating in local sailing competitions himself admitted having watched both races. Everyone else was ‘meh’.

And the reality, plain and simple, is that the figureheads of both teams, billionaires Larry Ellison and Ernesto Bertarelli, have pretty much ruined everything that could even remotely be thought of as “sportsmanship” for this 33rd contest.

Spending more than 30 months fighting it out in courtrooms, both teams have first and foremost demonstrated that winning at all costs was way more important than the sport itself. Both teams have fought teeth and nails, with all means at their disposal, to try and win by default, disqualifying their opponents or running the clock so that they would not be able to compete. Setting totally unfair rulings favouring the defender, having these tossed out by the court in favour of an even more outrageously unfair counter-rule that would itself be overruled, most of the 33rd America’s cup was actually fought in the dirtiest arena in the world, a court of law, by the most dishonourably unsporting contenders, two armies of lawyers intent on only one thing, to crush the others, no matter the consequences.

At the end, two impressive looking boats were produced, in a size and format more removed from every day sailing than F1 is removed from a normal family car. The first two races had to be cancelled, one because there wasn’t enough wind to move those juggernauts, the second one because the waves were too high for these beasts.

What won on the water, in the end, isn’t even clearly to be attributed to the skill of skippers and crew, but first and foremost the prowess and the flair of the engineers who made a far superior technical decision.

Of course, what heavily contributed to the loss of Alinghi, beyond the inferior technical design, was also the unbelievable hubris of the very man the country had admired for making the two previous victories happen, Ernesto Bertarelli, who tried to helm the boat himself and mostly demonstrated that he lacked any skill on the water, just like he had shown, together with his opponent, that he knew no shame and no move so vile that he wouldn’t have his team try to win before the race could take place.

The disgust I’m expressing here isn’t just mine alone. For instance, the 32nd edition in 2007 attracted over 200M € worth of sponsorships. The 2010 disgrace just about 11M, and no matter how you slice it, the financial crisis isn’t the only factor to blame for this.

And speaking of the crisis, in the end, the amount of money thrown away in the court contest but also those two completely uneven boats, in the face of the crisis, is nothing short of obscene. A sporting event is something that very much can lift the spirit of the world even in the darkest of times, but the shameful spectacle that led to this underwhelming race pretty much achieved the contrary: It is, in the end, the mirror image of what led the world into economic downturn, greed without restraint, a will to win at all costs without regard to ethics nor consequences, a take-no-prisoner dog-eat-dog contest that leaves the bystander exhausted and thoroughly disgusted by what the rich, powerful and depraved billionaires are doing.

Oracle won fair and square on the water, but they won a pyrrhic victory. The reputation of America’s cup is in shambles, and nobody trusts the future to reintroduce “fair play” and “sportmanship” in the event. Only the insanely wealthy stand any chance of running another race of the same format, and the vast majority of the public is most definitely not going to care about a 34th edition if that, too, is held after the courts decide on every minute detail while the competitors try to out-cheat each other.

Is the event salvageable? Perhaps. It would require nothing short of a totally neutral and balanced set of racing rules where every boat is to be constructed within the exact same specifications (ideally under a similar budget) and not a single line exists to favour either the defender or the challenger.

Only under such conditions will the next edition pit sailors against sailors and decide what racing team is actually the best in the world, instead of who has the better lawyers and smarter engineers. But just as the early warnings in 2007 and 2008, like the January bust of French trader Jerôme Kerviel, went unheeded by the finance world, there is little hope to see that happening. Team Oracle has most definitely demonstrated that victory could be acquired by extending every mean no matter how low or dirty (and again, Alinghi’s approach was the very same on the other side of the Atlantic), and I’d be highly surprised that they would suddenly look at restoring honour to their disgraced cup.

And coming full circle with the long series of posts that occupied my Warcraft gaming days, where in retrospect PvP completely fails is in the possibility to build totally unbalanced match-ups where superior gear and the right team composition removes most of the player skill before the match has begun.

Truly meaningful PvP would require that the teams duking it out be as evenly matched as possible before the gates open, including wearing the same level of preset gear as everyone else. That would of course be a lot less attractive, because people aren’t looking for a fair and challenging fight, the vast majority is playing to crush at any cost.

And therein lies the misery of these contest. In the immortal words of XVIIth century author Pierre Corneille, “A vaincre sans péril on triomphe sans gloire” – “Triumph without peril brings no glory”.

So it was on the Sea near Valencia, and so it is in our MMOs.

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When Sports Are Played Out in the Courtroom

So the next America’s Cup will be a 2-boat competition between Alinghi and Oracle. This hasn’t been decided gentlemanly between sportsmen valuing competition and a challenge. It has been so ruled by a judge.

Just behind that, the Kiwis, who have been beaten by Alinghi twice in a row (after holding the cup for several years themselves) are expecting a ruling from the same judge on their complaint that the delay caused by the first ruling is harming their finances. Never mind that Alinghi boss Bertarelli bailed them out of bankruptcy for a whopping 7 millions so they could actually compete in 2007. In today’s highly competitive sports, “Fair Play” appears to be an outdated concept.

I don’t know what I find most disgusting in all this, whether it’s the lawsuits themselves or that a Court actually presides over lawsuits which have nothing lost in a courtroom in the first place. Note that the news aren’t talking about mediation or settlement but a formal ruling (yes, I’m aware that the original 1887 document establishing the competition named a court as trustee. I still fail to see how antitrust lawsuits mesh with sports, sorry).

Needless to say, there’s little chance I will get excited by watching millionaires playing boat under the eyes of their ambulance-chasers lawyers ever again. Sports is (or used to be) essentially about competition in a healthy and sane environment. It is probably a sad reflection of our times that an activity which was supposed to be uplifting and inspiring comes down to the dirty, money-laden, backstabbing, below-the-belt play which leads to a court room.

What happened to Mens Sana in Corpore Sano? Where is the inspiring example, the sportsmanship in there? If any of Pierre de Coubertin’s ideals had survived through the 90′s IOC games attribution bribery scandals, the 21st century definitely killed off.

What has all this to do with WoW? Just remember Blizzard is trying to turn Arenas into an e-sport. While RMT and its associated cheating, hacking and exploitation is far from being under control. If physical sports have already demeaned themselves by fighting through lawyers and courtrooms, just figure where virtual sports are headed.

Courtroom decisions over sports turn the whole America’s Cup into a farce. Let’s not get a taste of this in what is no more or less than a game, please.

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Broken Toys on Pierce vs Deboneville Lawsuit

For people living on the moon, Broken Toys is the blog of one of the earliest MMOG commentators out there, Scott Jennings (formerly known as Lum the Mad). He has recently posted and reported about the latest lawsuit in the ever-growing charade surrounding IGE’s past and present activities. It appears that the sleazier fringes of the American leeches, those who give lawyers everywhere a bad name, are trying to gag commentary putting the already heavily battered reputation of their client under further light.

For reference, IGE’s name and their unsavory execs have had a long history of dabbling with RMT and gold selling in most MMOs, in a blatant violation of their Terms of Service. They have bought up successively thottbot, Allakhazam and wowhead, in a move which I’m quite ready to liken to efforts made by the Mob at various times to buy legitimate businesses with dirty money in order to feign respectability, and while these three sites will swear, honest-to-god, that they have no ties anymore to their allegedly former TOS-breaking parent (and they could even be of good faith with their beliefs), enough evidence to the contrary surfaced through the many pending lawsuits around IGE to question just how much these ties are broken, if at all.

The point here, however, is that Scott has to edit his post to comply with a lawyer’s bullying. Since Altitis is neither operated nor hosted in the USA, though, the original piece below is reposted for posterity. The words below are of course not mine, I’m not smart enough for that.

Pierce To Yantis To Evers To Chance: The Rise And Fall Of IGE

MMOcitizen.com, a website operated by the law firm currently bringing a class action lawsuit against IGE, obtained and published a copy of a complaint in another lawsuit involving IGE: this one brought against former CEO Brock Pierce last year by co-founder Alan Debonneville.

For almost 5 years, Debonneville has dedicated his entire life to the creation, development, and success of IGE US, LLC (”IGE”). IGE’s meteoric rise from an under funded startup to the market leader culminated in a Goldman-Sachs investment of $60,000,000, which set the value of IGE at the time of $220,000,000. While Pierce, a flamboyant former child actor, has always been the public face of IGE, Debonneville has been the tireless working founder, responsible for the expansion and operation of the company.

The filing goes into great detail about IGE’s rise and fall from Debonneville’s point of view, with, just in case you weren’t already glued to your PDF files, added dirt from the dot-com-money-and-man-boy-love days of DEN.

After living and working in Spain for a few months, Debonneville observed that Rector and Pierce had a very close relationship, one that did not seem normal between a 40-year old man and a 20-year old young man…

…Apparently, there were a multitude of charges related to the prior operation of a company specifying that Pierce, Rector, and Shackley had stolen money from the company and wasted corporate assets for things like the purchase of illicit drugs, living a lavish lifestyle, and criminal allegations of transporting a minor across state lines for sexual purposes. Upon learning this information, Debonneville questioned Pierce regarding the allegations, and Pierce stated that the claims were false and contrived as a setup by some competitors and former employees…

Wild enough? It gets… something. Worse? Better? Uwe Boll?

Debonneville was told by Pierce that the “Spanish FBI” came to their house with a “SWAT” team in helicopters, kicked in their door, shot their dog, and threw all of them in jail.

The complaint eventually leaves the Mallorca Vice portion of history and gives a breezy history of much of what we knew already – IGE’s quick rise and huge cash infusions, and the use of that in a quest to purchase respectability through hiring executives and purchasing websites. Eventually, it all falls apart around the time of the Goldman Sachs investment as the principals began to fall out over arguing over how to divide up the huge amount of stock, which is dealt in the document (from Debonneville’s viewpoint, of course) in point-by-point detail.

Debonneville was starting to discover that Pierce had not only lied to Debonneville about the Yantis Stock Repurchase, but also that Pierce had benefited personally to the detriment of Debonneville from the Salyer and Maslow sale of stock. Of course, Debonneville was shocked to learn that Pierce had sold any of Pierce’s stock in IGE…

…On July 14, 2006, in an apparent attempt to convince Debonneville that his interest in IGE was becoming worth less and less money, Debonneville was sent an article regarding a crackdown on the sale and purchase of game items for cash in Korea. The implication was that IGE’s recent acquisition of Itemmania, a Korean online house, was going to be a failure. In hindsight, it appears that this was just another one of Pierce’s attempts to manipulate Debonneville into selling his stock to Pierce for a less than fair value, certainly for less than Pierce realized on the sale to Maverick. Today, it is likely that this may in fact be IGE’s most valuable remaining asset…

And just in case you started nodding off with tales of stock screwballery… enter everyone’s friend in space, Jonathan Yantis.

Yantis also advised Debonneville that if a deal was not reached with IGE, Yantis had already put a network in place to compete with and destroy IGE. Yantis stated that through the hiring of certain individuals who he had a long time business relationship with, Yantis would sell currency that had been exploited or duped.

Exploiting or duping is a process whereby an outsider hacks the game program into creating currency for the individual or duplicating an item and then selling it over and over which also results the creation of currency. These actions allow for the exploiter/duper to create an endless supply of currency without any real cost to that currenct. This is something Yantis has done in the past and made large profits from. The exploiter/duper would typically receive a commission for any currency sold of about 40% of the sales price. Due to the currency being exploited, Yantis was and would be able to sell currency at a price significantly below market, since the cost of the currency sold was non existent. This also allowed for an infinite supply to be created in what could take as little time as a few minutes.

Yantis indicated that this was also how he could turn the trading arm of IGE around and make it profitable, almost instantly. Pierce was aware of Yantis’ intent to use these exploits. In fact, Pierce counted on them as part of the rationale behind why Yantis should be brought back to work for IGE.

A clearer explanation of the toxic effects of RMT on online gaming has yet to be written. (I know. I tried.)

I’m sure that as this hits the commentariat there will be more to be said. Oh, there will be more.

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