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2017 MarsdenLR 1653

HIGH COURT MALAYA SHAH ALAM
PP – Appellant
Versus
CHOO SOON ONN – Respondent
[Criminal Appeal No: 42LB-7-02-2015]



Petitioner Advocates:Lokman Kasim ,Respondent Advocate: Kulasegaran SA Shunmugam

Acting in good faith under misinterpretation of licensing agreements can absolve copyright infringement liability.

Headnote:The Court examined s 41(1)(d) of the Copyright Act 1987 concerning the respondent's defense against a piracy charge. The facts indicate the respondent was accused of illegally installing software at a cafe. The court found there was no infringement as the respondent acted in good faith, having been misled about licensing requirements, and thus dismissed the appeal. The final outcome was the affirmation of the lower court's decision.

Table of Content
1. court's analysis of legal definitions and implications. (Para 12 , 13 , 14 , 15)
2. defence claims and legal argument on reproduction. (Para 16)
3. exploration of the 'good faith' defence. (Para 17 , 18 , 19)

[12] In my considered judgment, pursuant to the above, "reproduction" is referred to an act of copying the original work into some other material forms, but it does not fit into the instant fact that all 33 computers were installed by the original PC games software in which it might be otherwise if the CDs were not original sources but of duplicated copies.

[13] Notably, in the present case, it involves the issue of "CD-Key". CD-key is the password printed somewhere on the packaging to grant the user's right to access to software he purchased, in which it has been defined by United States District Court For The Eastern District Of Missouri, Eastern Division in the case of Davidson & Assocs v. Internet Gateway 334 F Supp 2d at 1169:

"B. Technology of the Battle.net Service

Blizzard's games are shipped to customers on CD-ROM disks. Except for the game "Diablo," each authorized version of a Blizzard game comes with a "CD-Key", a unique sequence of alphanumeric characters that is printed on a sticker attached to the case in which the CD-ROM was packaged. The user of the game must input the CD-Key into his or her computer when installing the game, and it is subsequently stored on the computer for use in logging on to the Battle.net service. The Battle.net service prohibits use of unauthorized or pirated copies of Blizzard games with the Battle.net service.

To log on to the Battle.net service and access Battle.net mode, the game initiates a authentication sequence or "secret handshake" between the game and Battle.net server. First, the game and Battle.net server exchange random numbers (one provided by the game and one provided by the server). The game then takes the random numbers, as well as information from the CD-Key, and calculates an encrypted alphanumeric sequence which is sent to the Battle.net server. The game performs this encryption to prevent individuals from stealing the game's CD-Key when it is transmitted over the Internet to a Battle.net server. The Battle.net server receives the alphanumeric sequence sent by the game, along with other information sent by the game, and uses this data to determine whether the CD-Key information sent by the game is valid. If the CD-Key information is valid, the Battle.net server will determine whether the same CD-Key is already being used by another game that is currently logged on to that Battle.net server gateway. If the CD-Key is both valid and not currently being used by other players on the same Battle.net gateway, the Battle.net server sends a signal to the game that allows the game to enter the Battle.net mode and use the Battle.net gaming services. The Blizzard game waits for this signal before entering Battle.net mode. Battle.net uses an encryption algorithm for this process based on a common encryption algorithm. The standard version of this algorithm was released by the United States government."

[Emphasis Added]

[14] This Court found that by entering into "End User License Agreement" (D24), it is true that the respondent's Cafe had gained access lawfully to the PC games under authority granted by the owner. This Court refers again to the case of Davidson & Assocs (supra) in relation to the fuctionality of the "End User License Agreement" as follows:

"C. End User License Agreements ("EULA") and Battle.net Terms of Use ("TOU")

In order to play the Blizzard game contained on a CD-ROM, a user must first install the game onto a computer from the CD-ROM. First, the user inserts the CD-ROM into his or her computer. A menu pops up automatically, and the user chooses to install the game from that menu. Second, the user is presented with the terms of an End User License Agreement [*1170] ("EULA"). At the end of the EULA, Blizzard includes a button with the text, "I Agree

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