California Intends to get Money Back from ESA
By Shawn on Wednesday, August 6th, 2008 at 4:15 PM PST In Game Related Laws, Gamer Life, Games Industry
The Entertainment Software Association proudly announced winning a $282,794 check from California. The money partially covers legal fees spent over a 2005 Videogame Law that was declared unconstitutional by Judge Ronald Whyte in August 2007. The ESA had originally requested a $324,840reimbursement for legal fees last September.
Undaunted by this set back, not only is California’s Governor Arnold Schwarzenegger appealing the injunction he intends for the ESA to pay back the check if the state prevails in the U.S. Ninth Circuit Court appeal.
According to GamePolitics, the arrangement between the ESA and the state of CA was reached in November 2007. An excerpt from the agreement reads:
If, after all appeals have been exhausted or the time for all remaining appeals has expired, plaintiffs [the video game industry] are no longer the prevailing party in this case, the plaintiffs shall pay back the amount stipulated in paragraph 1 within thirty (30) days of the disposition of the final appeal or the expiration of time for all remaining appeals.
Given California’s budget crisis, it’s easy to see how the state could hope to recover the dues paid to the ESA. However it’s more likely that the already stressed state budget will have to cover more of the ESA’s legal fees.
