Sony argues PlayStation buyers know digital games are licensed, not owned
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Sony is defending a class-action lawsuit filed June 18 by four PlayStation customers who claim the company misled buyers into believing they own digital games. The company argues reasonable consumers understand that digital purchases grant a revocable license, not ownership. The case hinges on whether Sony's license terms were clear and conspicuous at the time of purchase.
Key Facts
- Four PlayStation customers filed a class-action lawsuit against Sony on June 18, alleging the company failed to clearly disclose that digital game purchases do not transfer ownership.
- Sony's license agreement states that software is licensed, not sold, and virtual content is licensed, not owned.
- California law prohibits sellers from using terms like 'buy' or 'purchase' for digital goods unless they provide a clear and conspicuous statement that the buyer receives only a license.
- In late August, Sony sent emails with terms and agreements to remind players how digital goods work.
The Lawsuit
On June 18, four customers filed a class-action lawsuit against Sony on behalf of themselves and all similarly situated individuals. The plaintiffs claim Sony did not make it clear that buyers do not receive ownership rights when purchasing digital games. They argue that buttons like 'Buy Now' and 'Confirm Purchase' mislead customers into believing they own the software. The plaintiffs contend that in most purchases, buyers receive ownership, but here they are expected to know they only get limited, revocable access.
Sony's Defense
Sony argues that reasonable consumers know they do not own a game when they buy it digitally. The PlayStation license agreement explicitly states that software is licensed, not sold, and virtual content is licensed, not owned. Sony provides links to its terms and agreements before a transaction, but these documents are extremely complex and lengthy. The information about digital ownership is buried in thousands of lines of text and printed in small font, making it easy to miss.
California Law
California law prohibits companies from selling digital goods using terms like 'buy' or 'purchase' unless they make a clear and conspicuous statement that the buyer receives only a license. Sony must prove that the digital license information was accessible and obvious at the time of purchase to avoid the lawsuit. In late August, Sony sent emails with these terms and agreements to remind players how digital goods work.
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