Sony Updates License Agreement to Block Class Action Suits

According to the Examiner, Sony has updated their user agreement for the PlayStation Network to block them against class action lawsuits. They have also changed their legal entity name from Sony Network Entertainment America Inc. (SNEA) to Sony Network Entertainment International LLC (SNEI).

The new agreement leaves “Binding Individual Arbitration” as the only means to solve disputes. The user agreement now reads:

ANY DISPUTE RESOLUTION PROCEEDINGS, WHETHER IN ARBITRATION OR COURT, WILL BE CONDUCTED ONLY ON AN INDIVIDUAL BASIS AND NOT IN A CLASS OR REPRESENTATIVE ACTION OR AS A NAMED OR UNNAMED MEMBER IN A CLASS, CONSOLIDATED, REPRESENTATIVE OR PRIVATE ATTORNEY GENERAL LEGAL ACTION, UNLESS BOTH YOU AND THE SONY ENTITY WITH WHICH YOU HAVE A DISPUTE SPECIFICALLY AGREE TO DO SO IN WRITING FOLLOWING INITIATION OF THE ARBITRATION.  THIS PROVISION DOES NOT PRECLUDE YOUR PARTICIPATION AS A MEMBER IN A CLASS ACTION FILED ON OR BEFORE AUGUST 20, 2011.

Sony will let you opt out of the binding agreement if you send them a written notification within 30 days of accepting the agreement.

IF YOU DO NOT WISH TO BE BOUND BY THE BINDING ARBITRATION AND CLASS ACTION WAIVER IN THIS SECTION 15, YOU MUST NOTIFY SNEI IN WRITING WITHIN 30 DAYS OF THE DATE THAT YOU ACCEPT THIS AGREEMENT.  YOUR WRITTEN NOTIFICATION MUST BE MAILED TO 6080 CENTER DRIVE, 10TH FLOOR, LOS ANGELES, CA 90045, ATTN: LEGAL DEPARTMENT/ARBITRATION AND MUST INCLUDE:  (1) YOUR NAME, (2) YOUR ADDRESS, (3) YOUR PSN ACCOUNT NUMBER, IF YOU HAVE ONE, AND (4) A CLEAR STATEMENT THAT YOU DO NOT WISH TO RESOLVE DISPUTES WITH ANY SONY ENTITY THROUGH ARBITRATION.

Sony know good and well they would be in danger of facing who know how many suits. They’re just trying to stay one step ahead and avoid as many problems as possible. Their image is hurt already and multiple court cases would just take a lot of time and resources that would be much better served in initiating damage control to what they have already gone through.
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4 thoughts on “Sony Updates License Agreement to Block Class Action Suits

  1. Yet another example of the “Agree to our terms or don’t use our stuff” way of doing business. There is a simple answer, and it’s the second part of what I’ve put in parentheses.

    Of course, the real solution is for courts to say that such one-sided agreements are not binding on the consumer, bringing the consumer some protection against corporate predation. But to do that would require government action, and who pays for political campaigns?

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