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Twitch-Streaming Destiny 2 Teen Cheater Fails in Bid to Shake Bungie Lawsuit
Andy Maxwell, 11 May 10:32 AM

Destiny 2After filing a series of lawsuits against cheat developers, cheat sellers, resellers, and even gamers who use cheats, there's little doubt that Bungie views cheating as a threat to its business.

After a Washington court awarded Bungie $6.7 million in damages against LaviCheats on Monday, the company scooped a damages award of $16.2m in the same court (but in a different case) on Tuesday.

For the sole defendant in yet another Bungie lawsuit, filed at exactly the same court in 2022, these headlines should make for uncomfortable reading. While the case doesn't feature a cheat developer or seller, Bungie has shown few signs that it's prepared to back down from its mission to stamp out game tampering.

Twitch Streamer Feels The Heat

In its July 2022 complaint, Bungie targeted a Twitch user who reportedly live streamed himself cheating in Destiny 2 while evading multiple bans. When it became apparent that the user was just 17-years-old, his name was removed from the docket and replaced by the initials L.L. Bungie continued, business as usual.

According to the complaint, L.L. and Bungie have a history. While using various pieces of cheat software, L.L. streamed his games on Twitch and using its own tools, Bungie detected his activity and banned him. L.L. responded by opening new accounts, which Bungie would eventually shut down. When L.L. posted a series of tweets in May 2022, in which 'arson' and 'death' were mentioned along with a named member of staff, Bungie was prompted into action.

In common with other lawsuits against cheaters, Bungie says that L.L.'s use of cheat software modified Destiny 2 and led to the creation of an unauthorized derivative work. That entitles the company to either $150,000 in statutory damages or an amount to be determined at trial. Bungie says that each time L.L. played the game, he also bypassed Bungie's security measures. Citing violations of the DMCA's anti-circumvention provisions, Bungie demands $2,500 for each time that happened.

More fundamentally, each time L.L. was banned and then signed up for a new account, he agreed to Bungie's Limited Software License Agreement with no intent to comply with it; fraud according to Bungie. That's on top of allegations that L.L. resold Bungie-issued digital emblems on a third-party platform with authorization to do so.

L.L. Came Out Swinging

Covered in detail last September, L.L.'s response to Bungie's complaint can be summarized in a few key points.

Anything that L.L. may have said about Bungie was simply the teenager making fun of the company's "apparently ineffective" efforts to combat cheating in Destiny 2. Since "Congress has not, at present, chosen to make [cheating] unlawful," the defense continued, none of the alleged acts in the complaint violated any of Bungie's rights.

Regarding violations of the LSLA, the court was informed that as a minor, L.L. has the right to disaffirm any contract within a reasonable time of becoming an adult. As it happened, he had already declared all contracts with Bungie null and void.

In its response to L.L.'s motion to dismiss, Bungie said the court could go right ahead and dismiss all of its claims related to the LSLA. While the LSLA prohibits things like cheating, it also acts as permission since it licenses certain actions, including playing the game.

With no license in place, Bungie said that every download and every play of Destiny 2 amounted to copyright infringement, potentially placing L.L. in a less advantageous position than he had enjoyed before.

In a subsequent filing, which appeared to reference the claim that Congress still hadn't made cheating in games illegal, Bungie informed the court of the Yout vs. RIAA decision, which relates to the circumvention of technological measures that protect access to a copyright work.

Cheating may not be illegal but without circumvention, this type of cheating wouldn't exist.

Court Steps in to Clarify the Law

In an order handed down this week, District Judge Richard A. Jones said that since L.L. had properly disaffirmed all contracts due to his status as a minor, he would now address L.L.'s motion to dismiss Bungie's lawsuit for failure to state a claim.

With no enforceable contract between L.L. and Bungie, the Court dismissed Bungie's breach of contract claim in connection with the LSLA. Bungie's claim of fraudulent inducement, related to L.L.'s allegedly false statements when agreeing to the terms of the LSLA, is a matter to be addressed at a later stage, so was not dismissed.

Copyright Infringement

Bungie's arguments in support of its copyright infringement claim were described by the Judge as "persuasive." The cheat software "transformed Destiny 2 by manipulating the software to add visual elements overlayed on the original visuals in the game" and since L.L. had no permission from Bungie, that amounts to an unauthorized derivative work.

Attempts by the defense, to play down the anti-cheat provision in the LSLA, also failed. Any use of software to cheat in Destiny 2 was preannounced in the LSLA as grounds for immediate termination of L.L.'s license.

Anti-Circumvention Claim

Regarding Bungie's anti-circumvention claims, the Court said that L.L. bypassed license access control measures when he agreed to the LSLA but with no intention to abide by it. He also bypassed Bungie's "step control measures" when he created new accounts after being banned, and when he used cheat software to avoid detection by Bungie's anti-cheat technology.

"The Court is not persuaded by Defendant's cherry-picked reading of the DMCA that only establishes a violation when the Defendant decrypts, descrambles, or disables Plaintiff's software," Judge Richard A. Jones' order continues.

"When read as a whole, the statute clearly states that avoiding or bypassing a technological measure violates the DMCA. Therefore, the Court denies Defendant's motion to dismiss the circumvention of technological matters claim."

L.L. enjoyed some success with the defeat of Bungie's claim under the Washington Consumer Protection Act, which related to L.L.'s unauthorized sales of digital emblems. The Court accepted that L.L.'s cheating, selling, and other conduct caused injury to Bungie's business, but the company failed to show that L.L.'s conduct is of public interest.

With the case set to continue, the Court invited Bungie to submit its first amended complaint.

Judge Richard A. Jones' order can be found here (pdf)

From: TF, for the latest news on copyright battles, piracy and more.

Bungie Wins $16.2m, Destiny 2 Cheat Dev Violated DMCA, RICO, CFAA
Andy Maxwell, 10 May 06:44 PM

Destiny 2Bungie's relentless pursuit of cheat developers, sellers, and resellers was probably crafted to send a deterrent message.

After another judgment and multi-million dollar damages award was handed down this week, any cheat developers still operating may consider other companies' games less of a risk. For those still unconvinced, a judgment handed down Tuesday may be persuasive.

The Domino Effect

Bungie filed a copyright infringement lawsuit against defendants allegedly involved in the development and supply of Destiny 2 cheat 'Wallhax' back in August 2021.

In June 2022, Bungie was awarded $13.5m in copyright infringement damages against Elite Boss Tech, Inc., 11020781 Canada Inc., and owner Robert James Duthie Nelson. The defendants admitted that Wallhax injected new code into Bungie's code, thereby creating an unlicensed derivative work. They also conceded that Wallhax circumvented Bungie's technological measures in breach of the DMCA.

With an apparently compliant defendant at its disposal, Bungie was able to identify two other key defendants. One of them decided to help Bungie, but the other – Denmark-based developer Daniel Larsen – proved less cooperative.

Bungie's response included calling in technical experts to paint Larsen's contribution to Wallhax in an extremely negative light, and him personally as an uncooperative witness. Some may have been tempted to visit the United States to iron things out but according to court documents, Larsen resisted the temptation.

No Defendant Present, No Defense

On Monday, with Larsen thousands of miles away, Bungie filed a motion for default judgment at a Washington court and didn't hold back. From a technical perspective, the motion wasn't entirely successful, but that certainly didn't prevent it from being a success.

Bungie asserted a total of eight claims against Larsen: copyright infringement, violations of the civil Racketeer Influenced and Corrupt Organizations Act (RICO), violations of the DMCA, violations of the Computer Fraud and Abuse Act (CFAA), violations of the Washington Consumer Protection Act (CPA), and civil conspiracy.

Seeking entry of default judgment on all claims, Bungie requested over $17.27m in damages, including almost $268k in attorney fees and $80,200 in costs. The company also requested a permanent injunction against Larsen, barring him from similar future conduct.

Successful Copyright Claims

District Judge Tana Lin found in favor of Bungie on its copyright infringement claim. Larsen's conduct was indeed willful, an important factor in support of Bungie's claim for enhanced damages.

Regarding Bungie's RICO claim, the court found sufficient evidence to show that Larsen willfully utilized Bungie's Destiny 2 software to develop the Wallhax cheat and that Larsen directly infringed Bungie's copyrights for his own personal gain.

Since Larsen benefited financially from criminal copyright infringement through the sale of 6,000 cheats, with illegal gains also reinvested back into the business, the court was satisfied with Bungie's RICO claim.

Bungie's claim alleging violations of the DMCA's anti-circumvention provision was equally successful.

"Bungie has provided allegations and evidence that Larsen developed and designed the Wallhax cheat to circumvent Bungie's technological measures to protect its copyrighted works in violation of § 1201(a)," the order reads.

"And Bungie has shown that the Wallhax cheat circumvented the controls and that Larson himself evaded those controls by opening new accounts after being banned. Additionally, Bungie has shown that Larsen violated § 1201(b)(1) by creating an infringing derivative work. The Court finds that entry of default judgment on these claims is proper."

Computer Fraud, Civil Conspiracy

The court also found that when Larsen intentionally accessed Destiny 2 servers to obtain the Destiny 2 software to create the Wallhax cheat, that amounted to a violation of the Computer Fraud and Abuse Act (CFAA).

When Larsen created multiple accounts after being banned from Destiny 2, he breached the terms of Bungie's Limited Software License Agreement LSLA, the court found. No evidence supported Bungie's claim that Larsen breached the Consumer Protection Act but the videogame company's Civil Conspiracy claim succeeded, with the court noting that Bungie's evidence was sufficient to show that Larsen conspired with the other defendants.

Default Judgment and Amount

Bungie asked the court for a damages award of $13,530,000 for violations of the DMCA. The court has the discretion to award no less than $200 or no more than $2,500 per act of circumvention, device or performance of service. Bungie requested $2,000 for each cheat downloaded and the court found the amount appropriate. Damages award granted: $13,530,000.

For its claim under the Copyright Act, Bungie asked the court for $466,718.90 in actual and statutory damages and requested the amount to be trebled due to Larsen's willful conduct. The court said that Bungie failed to provide admissible evidence of actual damages but its claim for willful infringement of two copyrighted works was accepted. Damages award granted: $300,000.

In respect of Larsen's alleged breach of contract, RICO and CFAA violations, the court awarded damages of $1,999,998. Bungie's request for an award of $267,887.10 in attorney fees and $80,263.92 in costs was accepted by the court.

In total, the court awarded Bungie $16,178,149.02 in damages and costs, plus a broad injunction to restrain Larsen from any and all future activities similar to those dealt with in this case.

Whether Bungie will be able to collect anything from Larsen is unknown, but the above seems to provide an aggressive framework for dealing with any developers who target Bungie's games in future.

Larsen-bungie

The order granting default judgment and the judgment itself can be found here (1,2, pdf)

From: TF, for the latest news on copyright battles, piracy and more.

 
 
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