To protect their business, X-Play reported Datablitz to authorities for selling copies of NBA 2K13 sourced from other means (not from X-Play) that led to the raid.
XPlay issued a statement at 4:30 pm on November 6, clarifying that its complaint was for "unfair competition" as defined under Section 168 of Republic Act No. 8293 or the Intellectual Property Code of the Philippines.
"By selling the NBA2K13 Products without authority from EpicSoft and/or XPlay, the exclusive distributor thereof in the Philippines, Datablitz, Inc. took a 'free ride' on the good will and marketing excitement established by XPlay, thereby engaging in 'unfair competition' to the prejudice of-Xplay and all of its rightful distributors most of which are small retail outlets," it said.
Raided was the branch of Datablitz at the Robinsons Ermita mall, based on a complaint by XPlay Online Games Inc. the local distributor of NBA 2K13 and other entertainment software products.
The complaint prompted the Makati Regional Trial Court Branch 24 to issue the search warrant.XPlay: We met with Datablitz
XPlay also said that it was prompted to take legal action against Datablitz because the latter had decided to distribute NBA 2K13 despite the failure of earlier talks between the two companies.
"This is not a knee-jerk reaction from XPlay. In fact, meetings were held with Datablitz President, Winston Lim and his team to become XPlay’s primary partner for NBA 2K13. Datablitz key executives Sandra Lu and Orpha Oambas even participated in XPlay’s distributor conferences and got all the marketing and distribution plans of the company," XPlay said in its statement.
"Datablitz’s decision to acquire and distribute NBA 2K13 through unauthorized means despite these efforts, leaves XPlay no other option but to report this to the proper authorities, in which CIDG and the Regional Trail Court took immediate action on," XPlay added.
Datablitz, CIDG preparing responses
GMA News Online has been in constant direct communication with Datablitz, which has declined to comment on XPlay's statement pending the release of its own official stand on the matter.
As of 4:30 pm, Datablitz told GMA News Online that it is still working on its statement.
Meanwhile, the CIDG said that it will issue an official statement on Wednesday morning, November 7.
Below is the official statement of X-Play Online Games, Inc:
It is unfortunate that businesses had to be disrupted by the incident that transpired yesterday. While we sympathize with other individuals dragged on by this issue, we stand by our ground to be vigilant in dealing with illegal activities to protect our rights, our partners and our local gaming community.
This is not a knee-jerk reaction from X-Play. In fact, meetings were held with Datablitz President, Winston Lim and his team to become X-Play’s primary partner for NBA 2K13. Datablitz key executives Sandra Lu and Orpha Oambas even participated in X-Play’s distributor conferences and got all the marketing and distribution plans of the company.Datablitz’s decision to acquire and distribute NBA 2K13 through unauthorized means despite these efforts left X-Play no other option but to report this to the proper authorities, in which CIDG and the Regional Trail Court took immediate action on.
The action of Datablitz was not only detrimental to X-Play but also affected other smaller retailers, game stores and entrepreneurs. We hope nothing more but to resolve this predicament but will hold firm in protecting the industry from smugglers and illegal operators.
FACTS OF THE CASE
The complaint was for “unfair competition” defined under Section 168 of Republic Act No. 8293 or the Intellectual Property Code of the Philippines.
By selling the NBA2K13 Products without authority from EpicSoft and/or XPlay, the exclusive distributor thereof in the Philippines, Datablitz, Inc. took a “free ride” on the good will and marketing excitement established by XPlay, thereby engaging in “unfair competition” to the prejudice of-Xplay and all of its rightful distributors most of which are small retail outlets.
MEETINGS WITH DATABLITZ
· Meeting between Take 2 Interactive, X-Play, and Datablitz
o Date: September 6, 2012
o Location: New World Hotel
o Discussion Points:
§ X-Play will be Official Distributor for NBA 2K13
§ X-Play wants Datablitz as a primary partner, and requested Datablitz to advise on support requirements it would need for NBA 2K13
· Distributors Conference 1
o Date: September 13, 2012
o Location: Max Restaurant, Gateway Mall, Cubao, Quezon City
o Attendees: Sandra Lu, Datablitz Purchasing Head
Orpha Oambas, Datablitz Marketing and Events Manager
o Discussion Points:
§ Briefing on X-Play Product Portfolio
§ Briefing on Marketing Programs
§ Discussion of Commercial Terms and Trade Concerns
· Distributors Conference 2
o Date: September 27, 2012
o Location: Max Restaurant, Gateway Mall, Cubao, Quezon City
o Attendees: Sandra Lu, Datablitz Purchasing Head
Orpha Oambas, Datablitz Marketing and Events Manager
o Discussion Points:
§ Discussion on NBA 2K13 Trade Programs, inclusive of all commercial terms.
§ Briefing on NBA 2K13 Marketing Program
· Lunch Meeting between Datablitz and X-Play Top Executives
o Date: September 28, 2012
o Discussion Points:
§ In-depth Discussion on partnership Agreement and Concerns
§ Sealed partnership Agreement via a Handshake
· Meeting between X-Play Sales Team and Datablitz Operations and Purchasing Heads
o Date: September 28, 2012
o Discussion Points
§ Discussion on actual orders to be placed by Datablitz
§ Operational discussion involving Purchase Order releasing, delivery timeframe, and collateral distribution.
Credits: Pinoy Tech Blog, A Bugged Life, GMA News
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