Microsoft to add ‘no suing’ clause with TOS update

Posted December 7, 2011 by Mark Ankucic in Gamer Culture, News.

Microsoft have begun following the trend of other publishers by including a ‘no suing’ clause in their terms of service, which will roll out with the Dashboard update due today.

Following in the footsteps of both Sony and EA, the new Dashboard update will bring with it a ‘no sue clause’, which states:

“IF YOU LIVE IN THE UNITED STATES, YOU AND MICROSOFT AGREE THAT IF YOU AND MICROSOFT DO NOT RESOLVE ANY DISPUTE BY INFORMAL NEGOTIATION UNDER SECTION 18.1.2 ABOVE, ANY EFFORT TO RESOLVE THE DISPUTE WILL BE CONDUCTED EXCLUSIVELY BY BINDING ARBITRATION IN ACCORDANCE WITH THE ARBITRATION PROCEDURES IN SECTION 18.1.7 BELOW. YOU UNDERSTAND AND ACKNOWLEDGE THAT BY AGREEING TO BINDING ARBITRATION, YOU ARE GIVING UP THE RIGHT TO LITIGATE (OR PARTICIPATE IN AS A PARTY OR CLASS MEMBER) ALL DISPUTES IN COURT BEFORE A JUDGE OR JURY. INSTEAD, YOU UNDERSTAND AND AGREE THAT ALL DISPUTES WILL BE RESOLVED BEFORE A NEUTRAL ARBITRATOR, WHOSE AWARD (DECISION) WILL BE BINDING AND FINAL, EXCEPT FOR A LIMITED RIGHT OF APPEAL UNDER THE FEDERAL ARBITRATION ACT. ANY COURT WITH JURISDICTION OVER THE PARTIES MAY ENFORCE THE ARBITRATOR’S AWARD.”

Further, Microsoft feels that while you shouldn’t be able to sue them in a class action or otherwise, they won’t think twice if they feel that you’ve cheated them:

“THE ONLY DISPUTES NOT COVERED BY THE AGREEMENT IN SECTION 18.1 TO NEGOTIATE INFORMALLY AND ARBITRATE ARE DISPUTES ENFORCING, PROTECTING, OR CONCERNING THE VALIDITY OF ANY OF YOUR OR MICROSOFT’S (OR ANY OF YOUR OR MICROSOFT’S LICENSORS’) INTELLECTUAL PROPERTY RIGHTS.”

So feel free to sue if you feel that Microsoft have stolen your intellectual property – of course, they may counter-sue and it’s not like Microsoft have a multi-billion dollar empire to bury you under.

While this will only affect those in the US (land of the free?), citizens of the red, white and blue can opt out of this part of the agreement by writing to Microsoft Corporation, ATTN: LCA ARBITRATION, One Microsoft Way, Redmond, WA 98052-6399 within 30 days of agreeing to the new terms of service.

Thanks to KotakuAU.

Tagged as Class-action, Dashboard, Microsoft, terms of service, Xbox 360