Sony lawsuits force Lik-Sang to close up shop [update 1]

by Christopher Grant { Oct 24th 2006 at 12:40PM }

The venerable Hong Kong-based import shop, Lik-Sang, has posted a lengthy, angry "Out of Business Notice" on their website citing multiple Sony lawsuits as the cause for their collapse. Sony originally brought actions against Lik-Sang last August for exporting PSPs to the UK before the release of the console there. Just last week a high court judge in London ruled that the sales were illegal in Europe and blocked them, even though Lik-Sang argued they broke no Hong Kong laws.

Last week, Pascal Clarysse, Marketing Manager of Lik-Sang.com argued, "Fighting multiple lawsuits in different countries at the same time and paying high premiums to expensive lawyers is an overwhelming situation for a small company like Lik Sang. Launching separate court actions with separate claims and different judges is completely unnecessary, except for the fact that it helps reaching one single target: outspend Lik-Sang to death. Pay beyond." Apparently, those lawsuits, and the realization they would be unable to sell Sony products to Europe, was enough to jeopardize the profitability of the shop. In a final lashing out against their extermination, this morning's release even lists several notable European Sony executives who've made "PSP related" purchases from Lik-Sang in the past. Whoops!

Now, before we all grab our trusty -- and narratively convenient -- pitchforks and torches and storm Castle Sony looking for a monster, let's remember that Sony was only protecting what it said it would and what it apparently (according to a London high court judge at least) has a legal right to. Were the "separate court actions with separate claims and different judges" really designed to exterminate one of the internet's most popular gaming import retailers? Perhaps. It's hard to be certain when emotions and business are so tightly interwoven, but we can be certain of one thing: Sony didn't need the negative press this is gonna earn them.

... okay ... go!

[Update: Sony has issued a response to GamesIndustry.biz denying responsibility for closure of the popular online shop, alleging "sour grapes" on Lik-Sang's part. Basically, since they didn't show up to contest the case in London, therefore incurring no costs, and haven't paid the amount awarded to Sony, there is little reason -- save for the anticipated losses due to an inability to sell Sony products to Europe in the future -- that Lik-Sang should have been forced to fold. Something sounds fishy here, but we're not experts in international trade. The rabbit hole goes deeper.]

[Thanks to everyone who sent this in! Seriously, there were dozens.]

Tags: Lik-Sang, retail, Sony

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Reader Comments (Page 1 of 4)

JimmyHACK @ Oct 24th 2006 12:44PM

oh lik-sang.... you gotta follow the law..

plain and simmple, they can't follow the rules, then they don't need to be in business.

Jose @ Oct 24th 2006 12:47PM

Nooooooooooooooo, what the fuck? First post. This is so fucking wrong. I got my GameCube component video cables from them. They didn't sell them anywhere else. This is bullshit.

Paul @ Oct 24th 2006 12:47PM

What about countries that gaming companies doesn't officially sell their stuff? Way to increasy piracy in those places...

ConstyXIV @ Oct 24th 2006 12:48PM

Sony attacks Lik-Sang for massive damage!

(I allow this statement to speak for itself)

James McGovern @ Oct 24th 2006 12:49PM

This says it all -

"Furthermore, Sony have failed to disclose to the London High Court that not only the world wide gaming community in more than 100 countries relied on Lik-Sang for their gaming needs, but also Sony Europe's very own top directors repeatedly got their Sony PSP hard or software imports in nicely packed Lik-Sang parcels with free Lik-Sang Mugs or Lik-Sang Badge Holders, starting just two days after Japan's official release, as early as 14th of December 2004 (more than nine months earlier than the legal action). The list of PSP related Sony Europe orders reads like the who's who of the videogames industry, and includes Ray Maguire (Managing Director, Sony Computer Entertainment Europe Ltd), Alan Duncan (UK Marketing Director, Sony Computer Entertainment Europe Ltd), Chris Sorrell (Creative Director, Sony Computer Entertainment Europe Ltd), Rob Parkin (Development Director, Sony Computer Entertainment Europe Limited), just to name a few."

It is (or should be) a free and global market. Sony creating this type of press over worrying about who shipped who's PSP's where, as long as they are authentic PSPs is ludicrous.

Zo� K. @ Oct 24th 2006 12:49PM

Sony has officially become the Microsoft of this decade.

Pixelantes Anonymous @ Oct 24th 2006 12:50PM

I'm attending the Playstation Lounge event in NYC on 11/1. Anyone know where I could get me some Lik-Sang clothing to wear during the event now that Lik-Sang won't be able to sell me any? If some enterprising T-shirt artist would put stuff up on Cafepress or other custom shirts vendors, and kindly Email me about it (my email on my blog), I'd put in an overnight order right away.

When the f*** was selling imports illegal? That's just bullshit. What I found extremely funny in the Lik-Sang press release was the fact that they'd sold Sony imports (hw and sw) to several Sony Europe execs. I guess Sony will have to sue them, too, eh?

Rymix @ Oct 24th 2006 12:50PM

I don't believe that Lik-Sang's actions had any negative impact on the gaming community at large.

The only people who used its import services were true gaming enthisiasts, some of whom, let's face it, will import stuff from anywhere given half a chance.

And why not? When companies such as Sony choose to delay the release of their products in certain parts of the world, then why should a real enthusiast in the, say, the UK or Australia suffer?

Strictly against the law, perhaps, but the closure of excellent shops such as Lik-Sang is a real loss.

E.J. @ Oct 24th 2006 12:51PM

I don't see how this suit was benefitting Sony. Cool things that are imported generate free marketing for Sony, yet they shoot it down because they want to control it?

Yet another example of why Sony execs should have gone to better business schools.

satek @ Oct 25th 2006 12:53AM

Just to clear up some things before fanboys try to defend Sony saying Microsoft and Nintendo sued Lik-Sang as well. They did in 2002 for Lik-sSang selling mod chips. They won, Lik Sang stopped selling them.the end. Sony has now sued them to get greedy and have all the rediculously over priced european consoles and games being bought by european consumers. This is just a fantastic press week, no month, year maybe for Sony. I can't wait to see what stupid things they do next.

voodooboo @ Oct 24th 2006 12:51PM

It's a complete farce... Seriously. Absolutely no need whatsoever.

You can import cars FFS [it says a lot about UK retail when it costs less to import a UK spec Ford from HJong-Kong than buy through authorised channels, watches, tech... anything you like except it seems $ony branded products.

What's next.. arrested going through customs because you bought a PS3 on hioliday...?

sweet Jesus.

CrazyD @ Oct 24th 2006 12:52PM

This really, really sucks. Lik-Sang was a great store and resource. And they weren't shut down for breaking the law. They were shut down by a megacorporations group of lawyers, the same lawyers Sony would use on everyone who hacks their PSP or uses a Music CD on more than one computer.

Lik-Sang didn't sell pirated or illegal things. They simply sold regular products to people in different countries. Which Sony doesn't like. Seriously, this has me really angry. To hell with companies that would rather sue people out of existence than compete fairly, like Sony has done many times before.

> @ Oct 24th 2006 12:51PM

OK .. whats up.

Sony didnt ask them for any money; why are they out of money all of a sudden? The lawyers? They could have stopped exporting PSPs and all would be dandy.

Something else is going on here.

mikey @ Oct 24th 2006 12:52PM

there's still Play-Asia...

Avinash_Tyagi @ Oct 24th 2006 12:52PM

@JimmyHACK

Maybe you should tell Sony to do the same

*cough*Immersion*cough*

Vagabond Artist @ Oct 24th 2006 12:53PM

Lik-Sang was awesome...

I am done with the playstation brand.
Wii60 for me.

Kevin @ Oct 24th 2006 12:55PM

Wow Sony what a smart fuckin move... not.

Great way to win fans back from your retarded PS3 campaign. Now there is no way I'm ever buying another Sony console.. I bought a PSP and I soon realised why I never bought a Sony console.

Avinash_Tyagi @ Oct 24th 2006 12:54PM

@mikey

Probably not for long if Sony has any say

Zo� K. @ Oct 24th 2006 12:54PM

"Sony didnt ask them for any money; why are they out of money all of a sudden? The lawyers? They could have stopped exporting PSPs and all would be dandy."

Go finish reading. Then come back to class, son.

Kevin @ Oct 24th 2006 4:33PM

@11

You're an idiot. The original lawsuit was against the importing of PSP's. There were multiple lawsuits. Learn to read.

jayntampa @ Oct 24th 2006 12:56PM

I'm not sure what damage Sony actually incurred ... it seems to me they could have found a better way to deal with this situation than forcing a legitimate game company out of business.

What's worse -- this is a legitimate game company in a part of the world known for organized piracy. Sony should have done everything in its power to ensure Lik Sang flourised in order to combat piracy. Sony is once again shown working against it's own interests and the interest of gamers.

Stoli @ Oct 24th 2006 12:55PM

I don't think I'll really be dealing with Sony products much anymore. I always realized they were a bit shady, but this is outright unethical (I'm shocked that the courts ruled in favor of Sony...well, guess I shouldn't be; the winner is usually the one with the deepest pockets).

I'll be writing a letter to Sony about this. Nope, no PS3 or PSP on my shopping list anymore.

32_Footsteps @ Oct 24th 2006 12:55PM

I'm wondering how this will affect other importers. My importer of choice, Play Asia, is planning on honoring all their preorders, and they're quite willing to ship to Europe.

Keep in mind they've filled their PS3 preorders months ago, so you can't just hop over there for stuff.

I wonder if Lik-Sang was just a victim of their own success - and the fact that Sony obviously knew they were doing it (as their own execs bought from the company). I feel bad for Lik-Sang, but there are other reputable importers - and ones where Sony's draconian actions won't be able to clamp down on them.

Hamish @ Oct 24th 2006 12:56PM

This kind of thing stirs a gut reaction of hatred within. Sony had no need to do this, it was aggressive corporate warfare on a quiet and nasty legal level. Sony just made themselves a very disgusted enemy.

puddlejumper @ Oct 24th 2006 12:58PM

Sony does indeed have a legal right to do what it did. And we have a right to say they are f--king a--holes for doing it.

Sony's actions will have both positive and negative consequences to the gaming community. How many gamers will get screwed over now since they can't get their games through an importer? How many will resort to downloading and and modding now? Discuss.

Neil @ Oct 26th 2006 6:29PM

Who cares, why should this change anyone's opinion on their gaming platform. This kind of legal shit happens all the time with products from Earl Grey tea to wrenches. There are other imporers too everyone, playasia for instance is great.

jc @ Oct 24th 2006 12:57PM

Just when you think Sony's name has been dragged through the mud for the last time... here we go again.

All Sony needs to do now is tell the world that they are bigger than Jesus.

Denney @ Oct 24th 2006 1:23PM

OMG F##K You sony i was going to get a PS3 from there but now what can i do i love that site and u go and F##K it up.

abigsmurf @ Oct 24th 2006 1:03PM

To the Joystiq writer

The ruling in London was uncontested. Liksang could not afford to attend as Sony sued them in several countries at the same time. If there no one to defend the accused, of course Sony were going to win.

This is bullyboy tactics and abuse of an unjust law. Here's pitchforks and flaming torches everyone.

Now for the magic phrase that will hopefully spread throughout gaming forums : BOYCOTT SONY

IanC @ Oct 24th 2006 12:59PM

Sony are dead in my eyes.

I already decided not to get a PS3, but now....

My PSP will be sold soon, as will its games. Ill probably keep my PS2, but tahts because its too old to sell really.

Mikami @ Oct 24th 2006 12:59PM

I'm not buying a PS3 and never intended to. However, this one article and action taken by Sony has infuriated me beyond comprehension. Lik-Sang was/is a brilliant site, and on a numerous amount of times I've imported from them into the UK. They provide an excellent service and the products are always delivered in a safe and efficient manor. This outcry of "Strict EU or UK consumer safety standards", is ridiculous, it truly is.

Lik-Sang provide the correct adapters for any of its exported consoles/handhelds and they ARE accepted by the UK/EU standards. I have about three of them.

As for the PS3, most people who would of ordered from Lik-Sang would of seen a notice if any of the products may be under privileged in any sense, therefore never Kansas-shuffling the customer into losing out on an 'essential' feature.

What a horrible, horrible monster Sony are turning into. RIP Lik-Sang. I'll hold onto my space invader keychain forever.

Todd @ Oct 24th 2006 1:00PM

While I can understand someone like Sony trying to protect their investments, importing games and systems to other companies has been around for decades. This is really just another attempt by Sony to control every facet of business because they can, just like how Sony tried to control and monopolize the Betamax market in the early 80's with no success.

Avinash_Tyagi @ Oct 24th 2006 1:01PM

@Neil:

You don't think Sony will go after them as well.

This just shows how little Sony cares about the gamer, and since they care very little about me, I choose to care very little about them and their products

Neccy @ Oct 25th 2006 3:19PM

Fucking Sony , the stupid fucktards!

"Lik Sang strongly disagrees with Sony's opinion that their customers need this kind of protection and pointed out that PSP consoles shipped from Lik-Sang contained genuine Sony 100V-240V AC Adapters that carry CE and other safety marks and are compatible world wide. All PSP consoles were in conformity with all EU and UK consumer safety regulations."

If they come with the right adapters and conform to the same saftey standards then this from Sony seem very petit indeed.
Sony are not doing themselfs any favours at all, and i definatly agree with the above statment that Sony is now the Microsoft of the decade.

Meeting at sony "Ok guys were gonna file lawsuits against lik-sang so go ahead and get your Psp orders in quick"

ymmv @ Oct 24th 2006 1:03PM

This is another FU from Sony to European gamers... There really is no limit to their anti-consumer, money-grabbing antics..

WizarDru @ Oct 24th 2006 1:14PM

"Sony didnt ask them for any money; why are they out of money all of a sudden? The lawyers? They could have stopped exporting PSPs and all would be dandy."

Oh really? That simple? Maybe you didn't read the fine-print. Sony didn't sue them for selling PSPs. They "claimed that Lik-Sang infringed its trade marks, copyright and registered design rights." Want to sell a Sony game? Same story. Want to sell some accessories? Same story.

Not only that, but it sets a precedent. Nintendo and Microsoft don't even have to sue, but if they wanted to, a legal precedent has been set. A company with Lik-Sang's margins can't afford long or numerous legal battles. So they're going out while they still can afford to do so.

Bravo, Sony....nothing like kicking your early-adopters and hard-core audience right in the junk. [golf clap]

DrkMatter @ Oct 24th 2006 1:07PM

Could anyone explain to me how exactly Lik-Sang was hurting Sony? I really fail to see any reason, or hurt, coming from Lik-Sang's business. As a matter of fact, they were selling PSPs... Which means added sales for Sony. So why shut it down?

Valaris @ Oct 24th 2006 1:12PM

I sent this article in earlier. Thank you Sony, for causing the shutdown of one of my favorite online retailers. So much for planning on buying a PS3 just for MGS4. I'll wait for the emulator.

I hope that Microsoft wins the lawsuit against Sony.
http://www.unscleric.com/news/2006/10/20/microsoft-prepares-legal-action-over-sony-propaganda/

I'm just sick of hearing the name Sony:
Sueing Lik-Sang out of business.
Raping the European consumers.
Pushing their unimportant Blu-Ray format. (What, no one has ever heard of multi-disc games? Has anyone even looked at HD video content next to DVD content? Barely noticable, at least for the average consumer.) Rootkits.
Exploding batteries.
Their huge ego.
They can't even make decent televisions anymore.

I did have a little interest in getting a PS3 once the pricedrops came around. It's not just a case of "Don't like it, don't buy it." now. They just overstepped their boundaries by forcing Lik-Sang out of business. I want to see them fail miserably.

F*** you, Sony.

Tom @ Oct 24th 2006 1:57PM

I'm interested to see how many of the people complaining about this ever actually used Lik-Sang...

elmer @ Oct 24th 2006 1:08PM

This case was a load of bullshit!

Infringing copyrights?????

Am I infringing copyrights right NOW by saying:

"I plan on buying a PS3 in the US and I'll sell it to you in London for LESS THAN £425 THIS CHRISTMAS"?

ARE YOU GOING TO SUE ME TOO NOW SONY?

Let's all do the same thing.

Everyone! stand together!

Announce you're going to buy something in one country, pay the taxes and sell it in another, all while announcing what it is you're selling so that you can happily break copyright.

Fuckers

I guess 'saying' SONY is a breach of copyright as it could be taken as a defamatory remark. From now on we'll have to refer to them as:
"The 'S' Word"

Eggzie @ Oct 24th 2006 1:09PM

RIP Lik-Sang.
Well I was already going to make "Boycott Sony" stickers for their pricey next-gen console but this brings so much more to the meaning - may double production now.

freaking-A I'm so pissed about this.

Martin @ Oct 24th 2006 1:09PM

Sony needs to quit touting their, We are reigion free unlike the Wii crap if they are going to do this though!

crono141 @ Oct 24th 2006 1:10PM

Yet nobody believed me when I said sony wanted to control everything.

Here's a great/stupid idea. Somebody e-mail Lik-Sang, asking if they can start up a Paypal donation e-mail, then get a petition going to increase awareness (since petitions rarely do anything more). If Lik-Sang doesn't have the funds to stay in business and combat sony, I'm sure the millions of disenfranchised customers do.

Dracula Jones @ Oct 24th 2006 1:11PM

Good one. Like you needed any more community backlash, Sony. Hope ya rot.

Martin @ Oct 24th 2006 1:13PM

I heard Sony was going to sue the catholic church and all christians for worshiping "god" and not them! Those who also worship Jesus are in for even more trouble, and god forbid anyone who worships saints!!!!!

juicebytim @ Oct 24th 2006 1:15PM

I'm just thankful my copy of "Osu! Tatakae! Ouendan" from lik-sang.com shipped last Wednesday.

I could see them starting a new import site with a lack of Sony products though. At least I hope they do becuase I feel much safer buying from them than I do from some dude in Hong Kong off eBay.

Verge @ Oct 24th 2006 1:15PM

Sony is just like any other corporation, they only care about the bottom line. I could give you numerous examples of how Nintendo/M$ has done similar things. But yea this is just horrible timing for Sony specially with their upcoming launch. Talk about bad publicity.

LaughingTarget @ Oct 24th 2006 1:17PM

Sony doesn't like this, and is targeting Europe specifically, because of favorable exchange rates. The Pound and Euro are highly valuable currencies and Sony can make a tidy profit just by converting the Pound or Euro to the Yen.

This isn't surprising though. Sony managed to play on strong socialist business protectionism policies. Europe has been sliding away from competetiveness for decades. The creation of the EU is proof-positive. Far easier to shut out competition when the entire continent is on the same page.

Though small, Lik Sang posed a threat to UK retailers. Lik Sang doesn't have to deal with the UK labor laws or have to pay restrictive UK taxes. Therefore, they can easily undercut UK retailers even after import fees and still make a profit.

The EU doesn't like it because Lik Sang is bypassing their taxation revenue sources. Sony doesn't like it because Lik Sang gets the exchange rate profits. Perfect one-two combination to knock Lik Sang out of business.