Is selling a video game before the release date really Illegal?

[WallaceNails]

I keep reading and hearing from Video Game retailers that if they sell NCAA Football 2006 prior to the “street date” they will be fined for doing something “illegal”

I have heard these retail employees quote me fines of-
1 Million dollars
$50,000 per game sold
$5,000 plus a felony charge
$500 per copy sold
$50,000 per retail company

Now when I ask then who will “fine” them, they don’t know the answer. When I ask them what law is broken and what gives some the right to “fine” them, they don’t know the answer.

Here are my questions and maybe someone can show me some real proof of the existence of fines. (i.e. legal statute/ agreement/ regulation)

-What federal law makes it illegal to sell a video game prior to a “street date”
-Who enforces this law?
-Who decides if a violation is worth a fine or a penalty?
-What is the penalty?
-If there is not a law then it is NOT illegal to sell the game early. Is there a distribution agreement that may have penalties? If so, who is part of this agreement.
-How would EA get money from the retailers?

I would appreciate some good answers from the people that know. I think there is a bunch of misinformation out regarding the subject.

[SoMiss2000]

I'm still trying to figure out how the developer would find out. I guess if people didn't post where they got the game, it would be cool.

[Mongoose]

Ok, sorry, I am not a lawyer and have no detailed knowledge. But my common sense says:

1. There is no law against selling an item (be it video game or whatever) before a specified date
2. However, if you break the specified date, depending on the agreed upon contract, you could be sued

I'd guarantee that there is some sort of contract among EA and either the Walmarts, Targets, and EBs of the world....or the distributor(s) EA uses. And chances are the contract spells out more details and contingencies in an unreadable language than any of us could come up with if we spent the rest of our lives thinking about it. Lawyers! Blah

Quote: Originally Posted by WallaceNails

I keep reading and hearing from Video Game retailers that if they sell NCAA Football 2006 prior to the “street date” they will be fined for doing something “illegal” I have heard these retail employees quote me fines of- 1 Million dollars $50,000 per game sold $5,000 plus a felony charge $500 per copy sold $50,000 per retail company Now when I ask then who will “fine” them, they don’t know the answer. When I ask them what law is broken and what gives some the right to “fine” them, they don’t know the answer.

The publisher of the game "fines" them. It's not really illegal per say, but there is a contract. If the store sells the game early, the store is in breach of said contract. The contract will stipulate what the compensation is, what the penalty is, and so on.

That part about the felony charge is BS.

Quote:

Here are my questions and maybe someone can show me some real proof of the existence of fines. (i.e. legal statute/ agreement/ regulation) -What federal law makes it illegal to sell a video game prior to a “street date”

There is no law, just a contract.

Quote:

-Who enforces this law?

The publishing company and its lawyers.

Quote:

-Who decides if a violation is worth a fine or a penalty?

The publisher sends "secret shoopers" into stores to buy products early. Normally there is a "fine" and a penalty such as the publisher not shipping games to the specific store or chain.

Quote:

-What is the penalty?

In most cases, the penalty is monetary. After repeated violations, the publisher will pull titles from the shelf.

Quote:

-If there is not a law then it is NOT illegal to sell the game early. Is there a distribution agreement that may have penalties? If so, who is part of this agreement.

There is a distribution agreement. The store or chain and the publisher are the participants in the agreement.

Quote:

-How would EA get money from the retailers?

Lawsuits. If the store refuses to stop the practice or refuses to pay, EA will pull all of its titles from the store or chain (an example). If the store refuses to comply, EA will take the store or chain to court for breach of contract.

Quote: Originally Posted by SoMiss2000

I'm still trying to figure out how the developer would find out. I guess if people didn't post where they got the game, it would be cool.

Mostly it's the kids the publishers pay to buy games early. So much of it goes unreported.

[Aaenuel]

[mgoblue]

obiwan pretty much covered it...basically EA has the threat to pull games from the stores, and that's a pretty big threat to have behind you...

[Furq]

Quote: Originally Posted by mgoblue

obiwan pretty much covered it...basically EA has the threat to pull games from the stores, and that's a pretty big threat to have behind you...

In the end though EA ismaking their money either way, I'm sure they'd rather have the game sold early then not send copies out to a retail chain which would reduce their overall sales. dunno