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Nintendo Owns Your Soul: What That Complicated Legal Language You Don't Read Actually Means

What do those long legal agreements that you blindly agree to actually mean?

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200 cardboard bricks are en route to Nintendo of America president Reggie Fils-Aime to send a message. It's part of a "Defective by Design" campaign from the Free Software Foundation calling attention to Digital Rights Management (DRM) and fighting against what it considers unfair DRM policies. The campaign generated headlines last week for pointing the finger at Nintendo's policies for 3DS.

All hardware and software comes with legal copy that most skim past, far more interested in consuming what they paid for. Hell, South Park just lampooned society's disposition towards passively accepting whatever corporations put in front of us, as long as the product is good enough. It was hard to take Defective by Design seriously, given it's an advocacy group with a clear agenda. Nintendo has an agenda, too, but is it anti-consumer? I'm someone who clicks "I agree" like most of you, but I also wanted to know more.

Defective by Design was upset for several reasons, including Nintendo claiming massive rights over content created by users on 3DS, including photos and videos. Here's the passage about copyright, lifted directly from the 3DS' End User License Agreement on Nintendo's website:

"By accepting this Agreement or using a Nintendo 3DS System or the Nintendo 3DS Service, you also grant to Nintendo a worldwide, royalty-free, irrevocable, perpetual, non-exclusive and fully sublicensable license to use, reproduce, modify, adapt, publish, translate, create derivative works from, distribute, perform and display your User Content in whole or in part and to incorporate your User Content in other works, in any form, media or technology now known or later developed, including for promotional or marketing purposes."

User content, in Nintendo's words, means "messages, images, photos, movies, information, 3DS user names, Mii, Mii nicknames, names of creators, and other names." It's a broad scope. In laymen's terms: Nintendo has a license to the content you've created and do, well, stuff with it.

"The Nintendo 3DS is a useful target for our campaign because the Nintendo Terms of Service state so clearly what kind of power they believe they deserve to yield over a user," explained Defective By Design campaign manager Joshua Gay to me in a recent email. "This does not make them any better or worse than Apple, for instance, but, Nintendo does make our job a little easier in some ways, since we can simply quote their own Terms of Service to show the world just how awful they are. This is an important aspect of the Defective by Design campaign--making as many people as we can aware of DRM technology and presenting our case as to why we believe it needs to be eliminated."

Legalese seems scary because it's tough to understand what it means. What sounds strangely demanding may have more to do with the company in question covering their ass--and yours. Or maybe not. Maybe corporations adopt such strict and impenetrable language to allow themselves more room to enforce rules as situations call for it. I'm not an expert, just a reporter shooting from the hip. Luckily, it's not that hard to get in touch with people who know much more than I do.

== TEASER ==
When you make something in LittleBigPlanet, that creation's not entirely yours.
When you make something in LittleBigPlanet, that creation's not entirely yours.

Defective by Design is attacking Nintendo and others for many reasons, but since so many games incorporate user content, to make better sense of this, we're going to focus in on the rights of corporations over the content you create within their experiences, hardware or software. There is a significant difference between "own" and "use," as a gaming versed lawyer I spoke to clarified.

"The initial issue is separating copyright ownership from a copyright license," said Andrew Ehmke, an attorney at Haynes and Boone. "The ability to use the content (a license) is different than owning the content (the owner can stop other people from using). Most terms of service that cover user-generated content will include language that effectively states that the company can use the user-generated content--although, the extent of the use will vary significantly."

Ehmke said I'd find similar language in both Microsoft and Sony's own user agreements. And?

Yup.

What if you make stages in LittleBigPlanet...?

"In addition, you will have the option to create, post, stream or transmit content such as pictures, photographs, game related materials, or other information through PSN [PlayStation Network] to share with others (User Material), provided no rights of others are violated. To the extent permitted by law, you authorize and license SCEA [Sony Computer Entertainment America] a royalty free and perpetual right to use, distribute, copy, modify, display, and publish your User Material for any reason without any restrictions or payments to you or any third parties.

...or make a game mode in Halo: Reach's Forge mode?

"With respect to content you post or provide, you grant to those members of the public to whom you have granted access (for content posted on shared and private areas of the Service) or to the public (for content posted on public areas of the Service), and, in either case, to us, free, unlimited, worldwide, nonexclusive, perpetual, and irrevocable permission to: use, modify, copy, distribute, and display the content in connection with the Service and other Microsoft products and services; publish your name, Gamertag, or other information you supply in connection with the content; and grant these rights to others."

That all sounds awfully intimidating. No one could blame you for not knowing what the hell the above statements actually means, wondering for a moment if game companies are tricking you into giving up your rights, and deciding to just move on and play the game you just bought.

"How often do terms of service that address UGC [user generated content] then also include language giving the company the ability to use that UGC?" asked Ehmke. "The answer is almost all of them."

Still sounds scary, but as Defective by Design suggests, are companies taking advantage of you?

"I agree also that the contractual language within the ToS [terms of service] of not just the 3DS but most gadgets are somewhat scary when translated into laymen terms," said Electronic Entertainment Design and Research analyst Jesse Divnich. "However, some of the suggested implications made in regards to the 3DS ToS are pretty farfetched. Nintendo is not going to steal your pictures for their own use. I don’t care what the language says, Nintendo won’t conduct in such a manner."

Kyle agreed to way more than he bargained for (like getting stitched to another human) via iTunes.
Kyle agreed to way more than he bargained for (like getting stitched to another human) via iTunes.

Naturally, Defective by Design holds a slightly more sinister view of the situation.

"The 3DS is not all that different from other mobile devices that rely upon a combination of legal and Digital Restrictions Management technology to force users to give-up control of their device," said Gay.

You've run the gauntlet with me, reader.

What are we to make of this? It's complicated. In Europe, for example, the laws do not allow companies licensed rights to user content--photos, movies, whatever. That's not the case over here, but that doesn't implicitly mean every company that includes what's obviously boilerplate legal language is up to something sinister. Little of the evidence points in that direction, but I have to imagine Defective by Design would take issue with such a cavalier response.

There's little reason for status quo change unless consumers demand it. That doesn't tend to happen until a company grossly crosses the line. Campaigns like Defective by Design hope to call attention before bad things happen. If South Park's right, though, we'll all keep clicking "I agree."

Patrick Klepek on Google+

138 Comments

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Xeiphyer

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Edited By Xeiphyer

While it may be true that they can potentially use basically any and all UGC, does anyone actually have a single example of them doing this? I sure as hell don't.
 
The most likely reason is to cover their asses. We live in a world where people can spill coffee on themselves at McDonalds and sue them... and WIN, or drink Red Bull and jump off a roof and sue because they didn't get wings. That's why companies have to be so extremely thorough in their warnings, ToS's, ToU's, etc. Its better to have some legal scapegoat writing to avoid a multi-million dollar lawsuit then risk losing a ton of money by not having it.
 
So, while its kind of sketchy, we haven't seen any cases of companies using anything covered in that legal text for any purposes thus far, and until we do, I'll continue not worrying about it.

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H7O

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Edited By H7O

good thing I decided to skip on Nintendo / Sony handhelds this time around.

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Karmann

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Edited By Karmann

actually, if you want your name and avatar to be visible online to other people when you have a top score or whatever, then they need to have their asses covered with something like this, otherwise some a-hole could post a top-score and then sew nintendo/sony/microsoft for using "his" name or avatar without his permission or some such bullsh!t. All those neet little things you all love that xboxLive does would be "legally dangerous" for the company if they didn't have their asses covered. So stop wining.

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tourgen

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Edited By tourgen
@VilhelmNielsen said:

How does ToS' hold up in court? There's no verbal or physical contract to refer to.

The judge refers to the stacks of cash and finds that adequate evidence to rule in favor of the corporation.
 
Anyway, since no negotiation in good faith between both parties took place EULAs should not be valid contracts.  Unfortunately some of them have been found valid in the courts.  Disturbing and filthy.
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kitsunezeta

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Edited By kitsunezeta

The one thing about this that does genuinely bother me is where Nintendo says that your warranty is instantly voided if your 3DS is bricked by any means. Including a firmware update. Which your 3DS (in theory, at least) is required to accept.
 
Considering Nintendo has a bit of a track record of bricking unmodified systems with firmware updates (see the WII), this means you're stuck with a handheld that Nintendo may randomly brick with a firmware update no matter what you do, and you're stuck with the repair bill for it even if it happens the day after you bought it.
 
No points for guessing what the first thing the homebrew community is going to try and remove is.

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vilhelmnielsen

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Edited By vilhelmnielsen
@tourgen said:
@VilhelmNielsen said:

How does ToS' hold up in court? There's no verbal or physical contract to refer to.

The judge refers to the stacks of cash and finds that adequate evidence to rule in favor of the corporation.  Anyway, since no negotiation in good faith between both parties took place EULAs should not be valid contracts.  Unfortunately some of them have been found valid in the courts.  Disturbing and filthy.
You guys are far too America-centric... I'm talking about real court, not the lobby.
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talideon

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Edited By talideon
@JBird said:
This is not very surprising.    
It should be, and I'll use your house building example to demonstrate why.
It extends much further than video games, and to be honest video games is the least obtrusive aspect of this "user created rights" situation. If I create a level in Halo forge mode its somewhat implied that I never owned the level nor should I.  
No, you ought to in part because you have rights to ownership of the level *design*. You might not own all the assets involved in the final product, but they, one assumes, are under a licence that allows their use in derivative products.
If I personally owned all the materials to build a house and said "anyone who wants to can come build anything with these materials" it doesn't mean they own what they build. They have used my possessions to build an object, by manipulating them they don't obtain the materials for themselves.
Very, very bad example because you're confusing assets with tools. The problem here is that LBP, Halo Forge, and things like it are tools, not assets, though they may provide access to reusable assets. Here's something closer to the actual reality of the situation. Say you own a company that hires out plant (as in heavy machinery), plumbing, electrical, &c., tools; essentially anything needed to build a house. Say a customer hires the tools they require off you build their house. Do you then own that house, or is it the property of your customer? Of course it's your customer's property. 
 
Would it be fair if Adobe were to say to Photoshop users that anything created or modified using Photoshop was automatically owned or licensed to Adobe irrevocably with wide terms of use to do as they like with it? Of course not. That's the issue at hand, and the issue the likes of Defective By Design have with licence terms such as those from Nintendo as given above.
Where this situation gets really dodgy is in university and companies. Anything you design whilst studying at university belongs to the university, and its not uncommon for large corporations include terms in the contract ensuring that products designed by the employee are owned by the company.  
They're wholly different situations. In both cases, you're exchanging one thing for another: students exchange their research and designs (created using the university's tools and assets) for an education in a specialised field, and employees exchange their work  (created using the company's tools and assets) for a wage. There's an exchange going on in both cases.
Thats a completely different situation because I'm not creating something with another's property. I'm creating something off my own steam and the factual presence of where I design it removes my ownership. Now thats scary.
No, you have that completely backwards, and for exactly the reasons I've outlined. Now, if the university or company were to claim ownership over stuff you've created out of hours, that's genuinely scary.
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talideon

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Edited By talideon
@SpudBug said:
Honestly don't care.  If anyone expected to make millions off creating levels in little big planet they are clearly mistaken. User generated content tools are there only to enhance your experience with the game, not as a tool for creation like photoshop or Illustrator.    
Given LBP is by design both a game and a tool. In fact, the whole point of LBP is that the player either uses it to create games or plays games created by others using it. It's fundamentally a tool dressed up as a game rather than a game that happens to allow some UCG. 
 
Of course, LBP and its ilk are more the exception than the rule; most games don't have the flexibility needed to also use them as tools.
Even Student Licenses for Photoshop and Illustrator don't give you license to sell the content you create with them.  
Because they don't have to: it's been part of Common Law since time immemorial that the ends of one's work is one's own. Adobe don't have to give you such as licence as you already have it as a property right.
Expecting a videogame to give you such is foolish.    
Of course it is, be because you already have the right to do as you like with your work.
This group is a joke and they just focus on the "problems" with popular devices to get attention. 
No they're not - this sort of thing is part of the FSF's reason for being. 
 
Now, in case it's not obvious, I'm not an FSF freetard, and I'm not a fan of the way they tend to overegg their arguments.
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AndrooD2

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Edited By AndrooD2

Nice article, Patrick.

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Xeridae

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Edited By Xeridae
@Tetsuo said:
A lot of people here are being all "oh Nintendo would never do something like that to me!"  Wait until one of these companies do start using your shit, see how non-chalant you are then. Companies don't exist to be nice to you, and if they see it as being in their best interest, they'll fuck you raw. Just because it may not have happened yet doesn't mean it'll never happen.
You must be joking. The second they start abusing consumer info like this that's the moment they've decided to commit corporate suicide because no one will trust them again. As someone else pointed out this is more to cover and protect themselves.
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Kyle

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Edited By Kyle

Lameness all around, but is this really news to anyone?

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Dan_CiTi

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Edited By Dan_CiTi

Thank you for writing this up. 

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Dry_Carton

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Edited By Dry_Carton
@AcidCrashX said:
great article. Its a shame such user generated content is not really owned by the user. happens with far too much stuff. 
That's an understatement. The content is not at all owned by the user.
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MforMaverick

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Edited By MforMaverick

Corporations will corporations.  :/

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mackgyver

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Edited By mackgyver

I agree with arguments defending our rights against some companies' ToS. 
We've heard from the consumers' perspective. Now I want to hear what the companies' defense is in all of this.

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Carlos1408

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Edited By Carlos1408

Hmmm... Very interesting Patrick. 
Does anyone know what it is that Apple has done that is so awful in their terms and conditions? 
 I own a macbook and I'd like to know, as I have accepted plenty of their terms without reading. I also saw that South Park episode and thought it was hilarious (as most of them are). It did cross my mind that these terms and conditions should be kept an eye on. After reading this That SP episode doesn't seem like such a ridiculous exaggeration anymore. 
BTW does this apply to a Nintendo DSi XL? I own one. I'm assuming it does.

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Nettacki

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Edited By Nettacki
@Tetsuo said:
 @Xeridae said:
You must be joking. The second they start abusing consumer info like this that's the moment they've decided to commit corporate suicide because no one will trust them again. As someone else pointed out this is more to cover and protect themselves.
Yep, because that whole rootkit thing killed Sony stone dead, didn't it. Consumers will forget virtually any corporate transgression as long as the products still push the right buttons.
As long as companies learn from their mistakes and make decent products, anything can be forgiven. When they refuse to learn from mistakes, THAT's when companies get killed. Ex: Vince Russo as he went from  WCW head writer to TNA head writer.
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deactivated-57d3a53d23027

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If I legitimately buy something, I am not going to let a TOS get in my way from actually using it. Also, even if you agreed to one of these TOS's, those companies won't violate any serious ethical boundaries in regards to user created content. The worse they will do is what Bungie has done with certain game-types, and I see no objection to their actions so all is well.

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wizeguy

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Edited By wizeguy
@Xeiphyer: i couldnt agree more.
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Tally_Pants

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Edited By Tally_Pants

you don't really have a choice... either agree to the Terms of Service or don't use there product... I just click agree, i have other things to worry about than whether or not Nintendo is going to publish the 3D photo of a plant to took to show off the 3D camera to a friend...

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yukoasho

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Edited By yukoasho
@Karmann said:
actually, if you want your name and avatar to be visible online to other people when you have a top score or whatever, then they need to have their asses covered with something like this, otherwise some a-hole could post a top-score and then sew nintendo/sony/microsoft for using "his" name or avatar without his permission or some such bullsh!t. All those neet little things you all love that xboxLive does would be "legally dangerous" for the company if they didn't have their asses covered. So stop wining.
It's spelled "sue."
 
Aside from that, though, you have a great point.  Corporations need to cover their asses from people who'd want to sue them for little to no reason, especially in lawsuit-happy America.  If not for this, then companies simply wouldn't have online leaderboards, Forge-type modes or anything else put into their games.  Is that what people want?
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Detrian

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Edited By Detrian

Who gives a fuck? This is just making a storm in a teacup, Nintendo is doing this to combat piracy and legally cover their asses but they won't fuck you over. 
 
It ain't  like Nintendo is going to use the stupid photo of your fucking dog or your dumb face that you took with your 3DS for a billboard. If Nintendo needed a photo of a dog or a dude they would get the prettiest dog and dude in the planet and take photos of that for use in their whatever they might be doing. Not only that but  even if an official update bricked some systems it would happen to multiple systems and Nintendo would acknowledge it and fix it, it would just be bad business for them to do otherwise.

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FacestabMan

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Edited By FacestabMan

Good thing this doesn't apply to Europe, though.

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Moonshadow101

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Edited By Moonshadow101

Trying to care, failing.  
 
LittleBigPlanet, Halo and any other game with user-generated content would not be able to exist at all if every asshole that used the creation tools had the right to assert ownership over his creations. 

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gbrading

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Edited By gbrading

Most websites also in their Terms and Conditions also make you give license to the site to do what it wants with your user content... Including our very own Whiskey Media. So it isn't like Nintendo is doing anything out of the ordinary here.

"When you post or transmit content on or through the site, you grant Whiskey Media and our affiliates and partners a nonexclusive, perpetual, irrevocable, worldwide, sub licensable, royalty-free license to use, store, display, publish, transmit, transfer, distribute, reproduce, rearrange, edit, modify, aggregate, create derivative works of and publicly perform the content that you submit to the site for any purpose, in any form, medium, or technology now known or later developed. You also grant us a license to use your name, city and state in connection with our use of any content you provide to us. You also consent to the display of advertising within or adjacent to any of your content."

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rick9109

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Edited By rick9109

Anyone hear of these things being challenged in court?  I know that accident waivers and stuff have been challenged and don't always hold up.

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pkhilson

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Edited By pkhilson

"...said Gay"

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Lokno

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Edited By Lokno

I don't really know why people get hung up on these blanket legal agreements. All these paragraphs do is protect the company from suits when they use user-created content in promotional materials.  That's their clear purpose.
 
As one of the creators chosen to create a level for the GOTY edition of LittleBigPlanet, I was compensated for my work on the disk. The point of that content was to show offline customers an example of what the community was doing with the game's level-creation tools. Therefore, even with the above language in their user agreement, SOE did not simply take user-created levels and sell them. On the other hand, they do put user-created levels in their game trailers, something I don't think they ask permission for (directly). So in practice, I think that SOE is respecting the creators time and effort, even if this bit of legalese implies that they don't have too.   

In my opinion, the language of an agreement alone is fairly meaningless. Nintendo is not going to turn around a copyright your original characters because you named your Miis after them, and then later sue you when you when try to publish your first novel. Maybe legally they could, but it would be pretty silly for them to throw their weight around like that, and if a company did do that you would start to see customer take notice about these agreements. Until then, the text before the agree button may as well be Lorem Ipsum.

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BitterAlmond

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Edited By BitterAlmond

How is the EULA in any form DRM? All I see there is Nintendo making sure it's alright if they publish your user-made levels/content without asking you first.

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fatwreck

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Edited By fatwreck

Taking ownership of created game content and taking ownership over personal images and information are hugely different because one is something you expect to be public and the other you would assume be private and live solely on your handheld. 
 
I think people with kids would understand the importance of this difference and it's made me think twice about getting my son a 3ds. 
 
And yes, I understand Nintendo isn't going to plaster pictures of my kid around the world, but that data unknowingly living anywhere else but his handheld isn't something I agree with.

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SgtReznor

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Edited By SgtReznor

god i hate those "defective by design" whiney dickholes

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chickdigger802

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Edited By chickdigger802

I'm pretty sure this just means the videos and pictures people took with there ds and 3ds are beamed to nintendo through magic, which they them put into their press conference videos ;)

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JJpenguin

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Edited By JJpenguin

I think it's a greed factor at play somewhat. These companies can cover their asses from distribution of user content without claiming automatic rights to such content. With gaming networks so vast, I don't see why Sony/Microsoft/Nintendo can't just find the UGC they want, and submit a request to the owner of the content for its use. 99.9% of all content that these companies 'own' will not be used, so why make a clause that makes a claim to it. (Living in Europe this is obviously not a problem for me)  
 
I just don't think it's right that in order to enjoy new technologies, you have to give up such basic things (like the ownership of your own content.) Perhaps with, say, LBP, where the UGC is reliant on the content creation tools put forward by the developers, I would make an exception. 

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Mooninaut

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Edited By Mooninaut

I wish people (including and especially the FSF) would read the entire EULA before going off on hysterical tirades.

"User Content" means comments, messages, images, photos, movies, information, data and other content (which include the Nintendo 3DS user names, Mii, Mii nicknames, names of creators, and other names) which are created by, or licensed to Nintendo 3DS users including you, which will be used by Nintendo 3DS users including you in connection with the Nintendo 3DS Service.

See that part there that I bolded?  Nintendo isn't saying it has the right to dive into your SD card and vacuum up your personal photos, Nintendo is saying that it can use anything that you actively choose to upload to its service.  Which is bad how?
 
Now if you want to talk about a genuinely evil EULA, look no further than the one for the Starcraft II map editor, which says (in part):

YOU ACKNOWLEDGE AND AGREE THAT ALL MAPS, LEVELS AND OTHER CONTENT CREATED OR MODIFIED USING THE MAP EDITOR (COLLECTIVELY, “MODIFIED MAPS”) ARE AND SHALL REMAIN THE SOLE AND EXCLUSIVE PROPERTY OF BLIZZARD. WITHOUT LIMITING THE FOREGOING, YOU HERE BY ASSIGN TO BLIZZARD ALL OF YOUR RIGHTS, TITLE AND INTEREST IN AND TO ALL MODIFIED MAPS, AND AGREE THAT YOU WILL EXECUTE FUTURE ASSIGNMENTS PROMPTLY UPON RECEIVING SUCH A REQUEST FROM BLIZZARD.

That's not merely claiming a right to use maps created with the map editor, that is a claim of copyright ownership over maps created with the map editor.  Guess what will happen when the next DotA comes along?  Blizzard will claim to own it outright, and if the creator jumps ship to, say, Valve (hi Icefrog) to make a commercial version, they will try to sue his ass into oblivion.  I think that's truly scary, and that's why I refuse to use the SCII editor.

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Munkatten

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@Jbird

That isn't entirely accurate.

If I create a cartoon character in minecraft, I own the copyright to that character, but not the 3d geometry that was made to build it.

Your house analogy need another layer, that of copyright. If I design a fantastic house out of someone else's materials, the design of the house belongs to me, but the actual physical house doesn't.

Also, if you're hired by a company to design a product, you're not creating something "off your own steam", you're hired labour, being compensated for your work. This kind of contract has been abused, but it isn't all that common and it certainly isn't the scary part about copyright, there are way worse things to worry about.

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fatwreck

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@Mooninaut: I'm glad you posted that; takes some of the paranoia away from the initial story. I would however still prefer the euro method where companies aren't  allowed to license user content.
 
Again, taking that info from the story. Can't imagine that's so black and white.