Piracy. It's an dark cloud that prompts many companies to employ draconian measures like DRM or electric shocks (coming soon to a game near you!). One notable exception is Michigan-headquartered Stardock, which refuses to include copy protection in its games, a policy that interestingly hasn't kept its most recent release, Sins of a Solar Empire, from putting up respectable numbers both online and at retail.

As Stardock CEO Brad Wardell explains it, piracy is an issue that "has to be kept in perspective," and in a recent Big Download interview he further played the common sense card, stating that "the people who actually buy games don't want to be inconvenienced or treated like a criminal." Wardell adds that while Sins "definitely" would have sold more had piracy not been an issue, "everyone who buys games knows they could easily have gone out and stolen it if they wanted to." It's a perspective often trumpeted by the gamer community, but it's even more refreshing to have it come from within the industry itself, and gives us one more reason to keep Sins of a Solar Empire sitting on our desktops.

Speaking at Sony's Devstation developer conference in London last week, SCEE president David Reeves affirmed that admitting a problem can be the first step in solving it. "There is a piracy problem on PSP," Reeves told an undoubtedly shocked MCV. "We know about it, we know how it's done." Ah, so they have internet access then.

It's not all bad news, however, as Reeves pointed out that piracy "sometimes fuels the growth of hardware sales," even if, "on balance," it makes Sony unhappy. PSP sales have given the manufacturer a lot to smile about, especially in Japan, but piracy takes its greatest toll on software, an equally important source of income. According to Reeves, new plans are already afoot to clamp down on digital swashbucklers, though given how quickly said plans are usually foiled, we imagine new strategies (and firmware updates) are constantly required.

As much as we enjoy not paying for things, we here at Joystiq HQ are vehemently opposed to piracy. Partly because we think cheating music, film, and gaming companies out of their hard-earned recompense is a despicable act, but mostly because we don't like equating paltry key-cracking to the visceral thrill of high seas swashbuckling. Apparently, Nolan Bushnell shares our disdain for modern-day "pirates" as well -- in a recent speech to a Wedbush Morgan Securities conference, the Atari founder discussed a new encryption chip which will "absolutely stop piracy of gameplay."

The stealth encryption chip known as TPM will appear on the motherboards of many computers currently being produced, according to Bushnell, and will allow game developers to imbue their future titles with completely uncrackable, unsharable activation passwords. We've found that e-pirates are a resourceful lot, so the prolonged effectiveness of this measure is questionable -- still, it could rejuvenate PC gaming in areas of the world where piracy runs rampant. Lord knows the industry could use a booster shot in Tortuga.

Each week Mark Methenitis contributes Law of the Game on Joystiq, a column on legal issues as they relate to video games:

From cheating to piracy, game security has become a major issue. In fact, the most recent Computer Law & Security Report features a piece by Steven Davis, author of PlayNoEvil, and W. Joseph Price about the state of security in the gaming industry. Their verdict was less than reassuring if you're a player or developer. Sure enough, just a few weeks after the report was issued, Grand Theft Auto IV was leaked prior to release. So what is a developer to do? What about the video game community?

To start, a "pirate" is someone who illegally reproduces or distributes something that is protected by an intellectual property right. In simple legal terms, that person is infringing on the rights of the copyright, patent, or trademark owner. While any intellectual property can theoretically be "pirated," I'm only talking about items that can be copyrighted. And before anyone points this out, yes, this is what groups such as the RIAA have taken pretty extreme steps to combat. Of course, the music industry and game industry are two different beasts.

Crysis developer and PC gaming evangelist Crytek may soon fly the flag of multiplatform solidarity, as company president Cevat Yerli revealed in a recent interview that the studio will no longer create games exclusively for the PC due to poor sales and game piracy that he says is "encompassing Crysis."

The comments were made as part of an interview with Croatian magazine PC Play, during which Yerli stated that "I believe that's the core problem of PC gaming, piracy ... It was a big lesson for us and I believe we won't have PC exclusives as we did with Crysis in future." He added that while the company will continue to create games for the PC, these titles will not be released solely for that platform.

Of course, this brings into question not only the oft-rumored PlayStation 3 and Xbox 360 ports of Crysis, but also the game's planned trilogy of sequels. While Yerli wasn't asked as to the fate of subsequent games in the Crysis canon, he did comment that bringing Crysis "as we have seen" to consoles would be "impossible," and that the game would have to be "largely changed" to be brought to either the PlayStation 3 of Xbox 360. We continue to dream of playing the game from the comfort of our couch, though Yerli's remarks that the company's focus "is not linked to bring Crysis to consoles" has a single high-def tear running down our cheek.

[Via Team Xbox]

Gasp! Pirated Grand Theft Auto IV game data has begun popping up on BitTorrent sites today. One alleged rip (6.32 GB) was compiled by a group known as "iCON" and apparently stripped from a PAL-region, Xbox 360 disc. A description of the file warns that the data is not region free and teases, "sorry bushlovers!" (Hey, that's "Mr. President George Dubya Bush lovers" to you, ya stinkin' pi-rats!).

An additional warning recommends would-be players stay off of Xbox Live lest "dirty little spies" catch them and ban their accounts. Ironically, at the end of the file description, the thievery and paranoia gives way to a glowing endorsement: "and guys, seriously, go and buy this one! R* deserves it..." How's that for a back-of-the-box quote!

[Note: We've chosen not to link to any torrent sites hosting the GTA IV tracker -- just take our word for it whydontya!]

There's a gritty side to Mexico's booming game industry, shown today as the ESA celebrated the efforts of Mexican law enforcement. 500 officers from the Procuraduría General de la República (PGR) and the Agencia Federal de Investigacion (AFI) teamed up to knock on a few doors down in Mexico City's 'notorious' Tepito district. By the end of the day, four pirate hideouts and three booty stashes were raided, netting roughly 290 DVD/CD burners, 28,800 illegal copies of games and more than 900,000 game cover inserts.

"Mexico is an important market for ESA members due to the enormous popularity of entertainment software," said Ric Hirsch, senior vice president for Intellectual Property Enforcement at the ESA. "Unfortunately, Mexico also has an alarmingly high rate of game software piracy that by our estimates reaches 88%." Sounds like those federales have a few more doors to knock on.

You perhaps remember when a hilarious chain of journalistic ineptitude lead to one publication reporting that 90 percent of DS users were using R4 chips for piracy. We scoffed at the obviously off-the-mark statistic at the time, but it's important to remember that there is another industry that does face such ubiquitous piracy: Casual gaming. According a piece penned by Reflexive director of marketing Russell Carroll, a staggering 92 percent of those playing the company's Ricochet Infinity pirated the game.

Carroll goes on to weigh the various causes for the problem as well as possible solutions, but he also mentions that his company handles digital rights management in-house rather than outsourcing them like most of the industry. ... Are we the only ones that look at that fact and think that just maybe we've cracked "The Case of the 92 Percent Thefts"? Just saying.

We already know that Nintendo alone can't smash all the R4 devices that allow for easy downloading and piracy of DS games. But could the aid of Europe's ELSPA help Nintendo complete its total smashing plan? Probably not, but that hasn't stopped the European trade organization from lending its help to Nintendo in battling the widely available device.

How exactly they'll help isn't yet clear, though. In a cryptically vague statement to MCV, ELSPA said they were "evaluating the R4 game copying device" and "working closely with [Nintendo] to consider the next step in the UK." While that statement doesn't reveal any concrete plans, it also doesn't rule out any potential "next step." S.W.A.T. team raids, tanks in the streets, nuclear strikes --they're all potential piracy-battling strategies that aren't eliminated by this statement. Pirates, start digging your fallout shelters ... NOW!

Sometimes inaccuracies are hard to spot. And sometimes, they just kind of jump up and slap you in the face. For instance, our truth-o-meter dropped into the red zone when we saw this story from Scotland's Sunday Post in which John Hillier, manager of the Entertainment & Leisure Software Publishers Association's Intellectual Property Crime Unit, says that "In America it's thought 90 per cent of Nintendo DS users are playing pirated games because of R4s."

...Ninety percent? Ninety? There are 20 million DS users in North America, and we're supposed to believe that 18 million are dirty, dirty pirates? Listen, one person ripping off a company is too many, but exaggerating the problem only marginalizes it in the eyes of the people you really need to reach: The gamers.

We've emailed the ELSPA for confirmation, and we'll let you know what we hear. But if they insist that the 90 percent of Americans are pirates, we're hanging up our blogging pants and opening up a personalized eye patch store.

Update: Apparently, the Sunday Post misquoted Hillier entirely, reports DS Fanboy. "[Hillier] didn't quote the Sunday Post on any figures whatsoever," said a spokesperson for the ELSPA. The unverified 90% figure supposedly comes from an article published by The Straits Times about piracy in Singapore. Go figure.

[Via DS Fanboy]

Piracy ahoy! AM3 and Dai Nippon Printing have partnered up to release the DSVision digital content platform for the Nintendo DS in Japan. The device -- which is officially licensed by Nintendo -- features a MicroSD flash card and a standard-sized DS card adapter. Users will be able to download movies, music, books, and manga from the DSVision website, and download the content onto the MicroSD card for portable viewing/listening.

Of course, we're more intrigued by the device's ability to put other content on the DS. Piracy? Who said anything about piracy? The DSVision could do a lot to mainstream the DS's homebrew development community, especially with its official endorsement from Nintendo.

DSVision is due for release in Japan this January, at a suggested retail price of ¥3,980 (or approximately $37 USD). The online digital content store isn't due to open until March. We smell a hot import item...

[Via Engadget]

Update: Added that this is a Nintendo-licensed peripheral. Thanks, Crono & Hakobus

Nintendo doesn't get along well with pirates. Maybe they don't like peg legs. Maybe scurvy gives them the creeps. Perhaps, a problem with parrots? Whatever the case may be, let it be known if you're found producing mod chips or game copying devices, Nintendo will raise anchor, drops the sails, and charge at you full speed ahead in a game of aquatic chicken ... and they don't blink (because a corporate entity doesn't have eyes).

Playing the Governor Alexander Spotswood to Supreme Factory's Blackbeard (read some history, damn it!), Nintendo "requested" the Chinese High Court (assuming the role of Lieutenant Robert Maynard) to stop a "global distribution operative involving game copying devices and modification chips." The court raided Supreme Factory, collecting over "10,000 game copying devices and mod chips." Nintendo joined forces with the US Government back in April in an attempt to help curb piracy in China. Guess that's working out well for them.

A Uruguayan Civil Court Judge recently ordered a major counterfeiter of Nintendo games to pay the company 2.5 million U.S. dollars in damages and legal expenses. We're not talking about a few downloaded ROMs or flash carts packed with emulators. The defender and three of his related corporations were deemed responsible for the sale of tens of thousands of counterfeit Nintendo games.

Counterfeiting on this scale hurts everyone. In China alone, piracy accounted for $762 million in stolen booty last year, which is no small sum of cash. It also makes baby kittens cry. People who make kitties cry should lose large amounts of money.

The ESA and cohorts' plea has gone unheard, or at least has not been honored. For a fourth consecutive year, U.S. Trade Representative Susan Schwab has jotted down Canada's name on a low-level watch list, instead of the blacklist. This doesn't mean that the government isn't watching for evils that might be leaking through the porous border to the north. It's just that pirated software and its ilk aren't a priority concern for Homeland Security -- probably because there's no offshore warehouse large enough to contain all of the potential violations (there's a lot of piracy going on, ya know?). That or the administration has faith in its consumers' moral compasses. Is yours in line?

For Canada the listing means rubbing shoulders with other mid-level offenders, like Brazil and Poland. It's sorta like juvie, minus the cells and deranged Kevin Bacon types.