Case 2:16-cv-04860 Document 1 Filed 07/01/16 Page 1 of 29 Page ID #:1 1 KARIN G. PAGNANELLI (SBN 174763) kgp@msk.com 2 MARC E. MAYER (SBN 190969) mem@msk.com 3 EMILY F. EVITT (SBN 261491) efe@msk.com 4 DANIEL A. KOHLER (SBN 285501) dxk@msk.com 5 MITCHELL SILBERBERG & KNUPP LLP 1377 West Olympic Boulevard 6 Los Angeles, California 90064-1683 Telephone: (310) 312-2000 7 Facsimile: (310) 312-3100 8 Attorneys for Plaintiff Blizzard Entertainment, Inc. 9 10 UNITED STATES DISTRICT COURT 11 CENTRAL DISTRICT OF CALIFORNIA 12 13 BLIZZARD ENTERTAINMENT, INC., a Delaware corporation, 14 Plaintiff, 15 v. 16 BOSSLAND GMBH, a foreign 17 corporation, and Does 1 through 10, inclusive, 18 Defendants. 19 CASE NO. 20 (4) VICARIOUS COPYRIGHT INFRINGEMENT 21 22 23 24 25 26 27 Mitchell Silberberg & Knupp LLP 7803901.11 28 COMPLAINT FOR: (1) TRAFFICKING IN CIRCUMVENTION DEVICES (2) INDUCEMENT TO INFRINGE COPYRIGHT (3) CONTRIBUTORY COPYRIGHT INFRINGEMENT (5) INTENTIONAL INTERFERENCE WITH CONTRACTUAL RELATIONS (6) UNFAIR COMPETITION [DEMAND FOR JURY TRIAL] Case 2:16-cv-04860 Document 1 Filed 07/01/16 Page 2 of 29 Page ID #:2 1 Blizzard Entertainment, Inc. (“Blizzard”) avers as follows: 2 3 4 PRELIMINARY STATEMENT 1. Blizzard is a developer and publisher of high-quality computer games 5 and related entertainment products, including the massively popular online 6 computer games “World of Warcraft” (“WoW”), “Diablo 3” (“D3”), “Heroes of 7 the Storm” (“HOTS”), and “Hearthstone.” Most recently, on May 24, 2016, 8 Blizzard released the highly anticipated multiplayer game “Overwatch.” In the 9 few weeks since its release, Overwatch has become one of the most popular games 10 ever released, and it represents a massive investment of time, money, and creative 11 energy. (WoW, D3, HOTS, Hearthstone, and Overwatch collectively are referred 12 to as the “Blizzard Games.”) 13 2. Defendant Bossland GmbH (“Bossland”) and those working in 14 concert with it have built a profitable business by creating, distributing, 15 maintaining, and updating malicious software products that are specifically 16 designed to enable their users to cheat at the Blizzard Games, at the expense of 17 Blizzard and its legitimate customers. These software products include four “bot” 18 programs – “HonorBuddy,” “DemonBuddy,” “StormBuddy,” and “Hearthbuddy” 19 (the “Buddy Bots”) – that enable users to automate their gameplay and manipulate 20 the Blizzard Games to their competitive advantage. Additionally, Bossland 21 recently developed and released to the public “Watchover Tyrant,” a product that 22 enables users to cheat in Blizzard’s brand new game “Overwatch” (the “Overwatch 23 Cheat”). 24 3. The Buddy Bots and the Overwatch Cheat (collectively, the “Bossland 25 Hacks”) have caused, and are continuing to cause, massive and irreparable harm to 26 Blizzard. Blizzard’s business depends upon its games being enjoyable and fair for 27 players of all skill levels, and Blizzard expends an enormous amount of time and Mitchell Silberberg & Knupp LLP 7803901.11 28 money to ensure that this is the case. The Bossland Hacks destroy the integrity of 1 Case 2:16-cv-04860 Document 1 Filed 07/01/16 Page 3 of 29 Page ID #:3 1 the Blizzard Games, thereby alienating and frustrating legitimate players and 2 diverting revenue from Blizzard to Defendants. Defendants’ sale and distribution 3 of the Bossland Hacks in the United States has caused Blizzard to lose millions or 4 tens of millions of dollars in revenue, and to suffer irreparable damage to its 5 goodwill and reputation. Moreover, by releasing “Overwatch Cheat” just days 6 after the release of “Overwatch,” Defendants are attempting to destroy or 7 irreparably harm that game before it even has had a chance to fully flourish. 8 Meanwhile, Defendants have been massively and unjustly enriched at Blizzard’s 9 expense, having received hundreds of thousands (if not millions) of dollars in 10 profits from the sale of the Bossland Hacks in the United States. 11 4. In creating and distributing the Bossland Hacks, Defendants have 12 engaged in numerous unlawful acts under U.S. law. Defendants have violated 13 Section 1201 of the Digital Millennium Copyright Act (“DMCA”), 17 U.S.C. § 14 1201(b)(1), by selling, importing, offering, providing, and otherwise trafficking in 15 technologies that circumvent or evade Blizzard’s anti-cheat technologies. 16 Defendants have encouraged and induced individuals located in the United States 17 to infringe copyrights. Defendants also have knowingly, intentionally, and 18 maliciously induced thousands or tens of thousands of Blizzard customers in the 19 United States to breach their contracts with Blizzard, including contracts that 20 explicitly prohibit them from engaging in the precise type of cheating that 21 Bossland enables by its hacks. Defendants not only know that their conduct is 22 unlawful, but they engage in that conduct with the deliberate intent to harm 23 Blizzard and its business. Blizzard is entitled to monetary damages, injunctive and 24 other equitable relief, and punitive damages against Defendants. 25 // 26 // 27 // Mitchell Silberberg & Knupp LLP 7803901.11 28 // 2 Case 2:16-cv-04860 Document 1 Filed 07/01/16 Page 4 of 29 Page ID #:4 JURISDICTION AND VENUE 1 2 5. This is a civil action seeking damages, injunctive relief, and other 3 equitable relief, under the Copyright Act, 17 U.S.C. § 101 et seq.; the DMCA, 17 4 U.S.C. § 1201; and the laws of the State of California. 5 6. This Court has subject matter jurisdiction over Blizzard’s claims for 6 copyright infringement and violation of the DMCA pursuant to 28 U.S.C. §§ 1331 7 and 1338(a). Pursuant to 28 U.S.C. § 1367, this Court has supplemental 8 jurisdiction over Blizzard’s state law claims for intentional interference with 9 contract and unfair competition, which are so related to Blizzard’s claims under the 10 Copyright Act and DMCA as to be part of the same case or controversy. 11 Additionally, this Court has subject matter jurisdiction pursuant to 28 U.S.C. 12 § 1332 because the amount in controversy exceeds the sum or value of $75,000, 13 and the action is between a California citizen and a citizen of a foreign jurisdiction. 14 7. This Court has personal jurisdiction over Defendants because they 15 have purposefully directed their activities at the United States, and at California in 16 particular, have purposefully availed themselves of the benefits of doing business 17 in California, and have established a continuing presence in California. Blizzard is 18 informed and believes, and on that basis alleges, that, without limitation: 19 (a) Defendants conduct extensive and ongoing business with users in the 20 United States and the State of California; 21 (b) Defendants distribute the Bossland Hacks in the United States and the 22 State of California, advertise and market the Bossland Hacks in the United States 23 and the State of California, and communicate directly with users in the State of 24 California, including for the purposes of soliciting purchases of the Bossland 25 Hacks by such users and providing technical support for the Bossland Hacks; 26 (c) Defendants have directed their unlawful activities at Blizzard, 27 knowing and intending that Blizzard would be harmed by their conduct in the Mitchell Silberberg & Knupp LLP 7803901.11 28 United States and primarily in California, where Blizzard has its principal place of 3 Case 2:16-cv-04860 Document 1 Filed 07/01/16 Page 5 of 29 Page ID #:5 1 business (in fact, Defendants specifically advertise their products as being made 2 for Blizzard’s games); 3 (d) Defendants have entered into, and continue to enter into, hundreds or 4 thousands of contracts with individuals in the United States and in the State of 5 California, including contracts pursuant to which such individuals license from 6 Defendants the right to install and use the Bossland Hacks. In return for such 7 licenses, Defendants receive ongoing recurring monthly payments from individuals 8 in the United States and the State of California; 9 (e) Defendants employ or engage individuals residing within the United 10 States to create, code, develop, test, and support the Bossland Hacks; 11 (f) Defendants contract with numerous entities located in the United 12 States and the State of California in connection with their business. This includes, 13 for example, domain name registries, hosting or content delivery services, and 14 credit card processors and merchant banks; and 15 (g) Defendants distribute the Bossland Hacks via content delivery 16 networks and servers located in the United States and the State of California. 17 8. Venue is proper in this District pursuant to 28 U.S.C. § 1391(b) 18 because this is a judicial district in which a substantial part of the events giving rise 19 to the claims occurred, and/or in which Blizzard’s injury was suffered. 20 THE PARTIES 21 22 9. Blizzard is a corporation duly organized and existing under the laws 23 of the State of Delaware, with its principal place of business in Irvine, California. 24 Blizzard is the publisher and owner of all rights, title, and interest in the immensely 25 popular computer games “World of Warcraft,” “Diablo 3,” “Heroes of the Storm,” 26 “Hearthstone,” and “Overwatch.” 27 Mitchell Silberberg & Knupp LLP 7803901.11 10. Blizzard is informed and believes, and on that basis alleges, that 28 Defendant Bossland GmbH is a company incorporated in Germany, with its 4 Case 2:16-cv-04860 Document 1 Filed 07/01/16 Page 6 of 29 Page ID #:6 1 principal place of business in Zwickau, Germany. Blizzard is informed and 2 believes that Bossland is the developer and distributor of the Bossland Hacks and 3 is responsible for creating, producing, maintaining, marketing, advertising, 4 supporting, and monetizing the Bossland Hacks. 5 11. The true names and capacities, whether individual, corporate, 6 associate, or otherwise, of the defendants sued herein as Does 1-10 inclusive, are 7 unknown to Blizzard, which has therefore sued said defendants by such fictitious 8 names. These defendants may include individuals whose real identities are not yet 9 known to Blizzard, but who are acting in concert with one another, often in the 10 guise of Internet aliases, in committing the unlawful acts alleged herein. Blizzard 11 will seek leave to amend this complaint to state their true names and capacities 12 once said defendants’ identities and capacities are ascertained. Blizzard is 13 informed and believes, and on that basis avers, that all defendants sued herein are 14 liable to Blizzard as a result of their participation in all or some of the acts set forth 15 in this complaint. (All of the aforementioned defendants collectively are referred 16 to herein as “Defendants.”) 17 12. Blizzard is informed and believes, and on that basis alleges, that at all 18 times mentioned in this complaint, each of the Defendants was the agent of each of 19 the other Defendants and, in doing the things averred in this complaint, was acting 20 within the course and scope of such agency. 21 22 FACTS APPLICABLE TO ALL CLAIMS 23 Blizzard And Its Computer Games 24 13. Blizzard is a computer game developer and publisher, engaged in the 25 business of developing, financing, producing, marketing, and distributing high26 quality software game products. Blizzard is one of the world’s most respected 27 makers of computer games, including the incredibly popular titles “World of Mitchell Silberberg & Knupp LLP 7803901.11 28 Warcraft,” “Diablo 3,” “Heroes of the Storm,” “Hearthstone,” and, most recently, 5 Case 2:16-cv-04860 Document 1 Filed 07/01/16 Page 7 of 29 Page ID #:7 1 “Overwatch” (collectively, the “Blizzard Games”). Blizzard is the owner of valid 2 and subsisting copyrights in each of the Blizzard Games. 3 14. The success of each of the Blizzard Games rests in part on Blizzard’s 4 ability to offer a consistently compelling player experience so that its customers 5 remain invested in the Blizzard Games and play them for a sustained period of 6 time. 7 15. World of Warcraft (“WoW”) is a Massively Multiplayer Online 8 Roleplaying Game (“MMORPG”), a genre of computer game in which a large 9 number of players interact with each other simultaneously in a persistent “virtual” 10 online world. In order to recoup its massive investment in WoW, Blizzard charges 11 users a monthly (or yearly) subscription fee. Payment of the subscription fee 12 permits users to access Blizzard’s WoW servers and play the WoW game. 13 Accordingly, Blizzard takes great pains to ensure that the WoW game world offers 14 fair, interesting, fun, and compelling challenges, so that players remain subscribers 15 to WoW. 16 16. Diablo 3 (“D3”) is an online “action roleplaying game” in which 17 players (either on their own or cooperatively in groups of up to four) battle 18 monsters, demons, and other enemies, building their characters by obtaining 19 experience and in-game items. In addition to the substantial capital and resources 20 expended by Blizzard in developing D3, Blizzard expends substantial resources on 21 an ongoing basis developing and releasing content patches and maintaining the D3 22 game (including server maintenance, bug fixes, and balance tweaks). 23 17. Heroes of the Storm (“HOTS”) is a competitive, skill-based 24 multiplayer game in which two teams of five players engage one another in 25 competitive head-to-head combat. HOTS utilizes a “free to play” business model, 26 in which players are not charged to initially download the HOTS client software or 27 play the game online. Instead, Blizzard relies on in-game user purchases Mitchell Silberberg & Knupp LLP 7803901.11 28 (sometimes referred to as “microtransactions”) to recoup its massive investment in 6 Case 2:16-cv-04860 Document 1 Filed 07/01/16 Page 8 of 29 Page ID #:8 1 HOTS (for example, a HOTS player might pay to unlock a new playable character, 2 or purchase aesthetic upgrades for his or her existing characters). Only dedicated 3 HOTS players typically make these in-game purchases, and thus it is critical to 4 Blizzard’s business that players remain invested in the game and interested in 5 purchasing in-game items and upgrades. 6 18. Hearthstone is an online collectible card game (a “CCG”), utilizing 7 characters and settings from World of Warcraft. Hearthstone is free-to-play with 8 no monthly subscription. Like other CCGs, Hearthstone has a base set of cards 9 and a series of additions and expansions. New cards are awarded by playing the 10 game or by purchasing card packs. To keep players interested in the game, 11 Blizzard regularly releases card updates and single-player “adventures” that reward 12 the player with new, exclusive cards. Because the financial success of Hearthstone 13 relies on purchases of this additional content, it is critical to Blizzard’s business 14 model that the game remains fun to play and that players are willing to invest in 15 the game by purchasing new cards or new content. 16 19. Overwatch, released on May 24, 2016, is a team-based, online 17 multiplayer, “first person shooter” (“FPS”) game. Overwatch is a highly 18 competitive, skill-based game with a fixed set of rules and regulations that have 19 been carefully designed to ensure that all players stand on equal footing and have a 20 fair chance to defeat their opponents and progress in the game. Maintaining proper 21 game balance is absolutely critical to the game’s success. Thousands of hours 22 have been spent by Blizzard to ensure that the game is fair and fun to play. If that 23 balance is artificially upset, or if there is a perception that some players are 24 cheating or have an unfair advantage, then players will grow frustrated with the 25 game and stop playing, the robust multiplayer community will wither before it 26 takes root, and the game will not reach its full potential. 27 Mitchell Silberberg & Knupp LLP 7803901.11 28 7 Case 2:16-cv-04860 Document 1 Filed 07/01/16 Page 9 of 29 Page ID #:9 Blizzard’s Efforts To Protect Its Games 1 2 20. The Blizzard Games are under near-constant threat from individuals 3 and corporations who seek to exploit the Games for their own personal gain, at the 4 expense of others. For this reason, Blizzard seeks to protect the integrity of its 5 products and the sanctity of its users’ game play through both technical and 6 contractual measures. 7 Blizzard’s Technical Security Measures 8 9 21. In order to protect its games from cheating or unauthorized 10 exploitation, Blizzard has developed and employs a software program called 11 “Warden.” Warden is a technical measure that prevents unauthorized access to the 12 Blizzard Games, restricts users from loading unauthorized copies of the Blizzard 13 Games, and otherwise monitors the game client and environment for malicious or 14 unauthorized software processes. 15 22. One of the ways that Warden enforces Blizzard’s rights is by running 16 targeted scans for the presence and/or use of “signatures” of known unauthorized 17 third-party programs that facilitate cheating or allow the modification of the game 18 interface and/or experience in any way not authorized by Blizzard. If Warden 19 detects that a user is engaged in prohibited hacking or cheating activities, it will 20 deny that user access to the Blizzard Game. As a result, for any hack or cheat 21 software, including the Bossland Hacks, to be effective, the software must be 22 designed to prevent its detection by Warden, either by concealing itself from 23 Warden or by disabling Warden. 24 23. Blizzard also uses encryption measures to protect the Blizzard Games 25 from being exploited and manipulated by hackers and cheaters. For example, 26 Blizzard encrypts the “data pointers” used by its games so that hackers cannot 27 locate critical gameplay data such as enemy and ally positions and enemy health. Mitchell Silberberg & Knupp LLP 7803901.11 28 8 Case 2:16-cv-04860 Document 1 Filed 07/01/16 Page 10 of 29 Page ID #:10 1 Thus, to access and obtain information that can be used to modify and alter the 2 Blizzard Games it is necessary to engage in decryption activities. 3 Blizzard’s Contractual Protection Of Its Games 4 5 24. In order to access, download, or play any of the Blizzard Games, users 6 must create and register an account with Blizzard’s proprietary Battle.net system. 7 To create a Battle.net account, users must expressly manifest their assent to the 8 “Battle.net End User License Agreement” (the “EULA”). The entire text of the 9 EULA is displayed to users at the time they are asked to assent to its terms. The 10 EULA also is made available on Blizzard’s website at http://us.blizzard.com/en11 us/company/legal/eula.html. 12 25. The EULA is a conditional, limited license agreement between 13 Blizzard and its users. Under the EULA, Blizzard licenses the right to download, 14 copy, install, and play the Blizzard Games, subject to certain terms, restrictions, 15 and conditions. Among other provisions, the EULA expressly states that, as a 16 condition to the limited license: “You agree that you will not, in whole or in part 17 or under any circumstances, do the following: 18 19 20 21 22 23 24 25 26 27 Mitchell Silberberg & Knupp LLP 7803901.11 28 Derivative Works: Copy or reproduce (except as provided in Section 1(B)), translate, reverse engineer, derive source code from, modify, disassemble, decompile, or create derivative works based on or related to the Battle.net Client or Games. Cheating: Create, use, offer, advertise, make available and/or distribute the following or assist therein: 1. Cheats; i.e. methods, not expressly authorized by Blizzard, influencing and/or facilitating the gameplay, including exploits of any in-game bugs, and thereby granting you and/or any other user an advantage over other players not using such methods; 2. Bots; i.e. any code and/or software, not expressly authorized by Blizzard, that allows the 9 Case 2:16-cv-04860 Document 1 Filed 07/01/16 Page 11 of 29 Page ID #:11 1 automated control of a Game, Battle.net and/or any component or feature thereof, e.g. the automated control of a character in a Game; 2 3 3. Hacks; i.e. accessing or modifying the software of a Game or Battle.net in a manner, not expressly authorized by Blizzard; and/or 4 5 6 4. any code and/or software, not expressly authorized by Blizzard, that can be used in connection with the Battle.net client, Battle.net, a Game and/or any component or feature thereof which changes and/or facilitates the gameplay; 7 8 9 10 26. The Blizzard Games are made available to the public exclusively 11 through Blizzard’s proprietary Battle.net system. (This includes any physical 12 copies of the Blizzard Games, which must be activated and played through the 13 Battle.net system.) Thus, it is not possible for a user to lawfully obtain access to or 14 play any of the Blizzard Games without expressly consenting to the EULA. 15 16 17 Defendants And The Bossland Hacks 27. Defendants are engaged in the for-profit business of creating, 18 producing, marketing, distributing, and supporting a suite of malicious software 19 products specifically designed to harm Blizzard and the Blizzard Games. The 20 Bossland Hacks include the “Buddy Bots” and the “Overwatch Cheat.” 21 28. All of the Bossland Hacks are designed to enable players of the 22 Blizzard Games to circumvent the rules of the Blizzard Games and gain unfair 23 advantages over other players. 24 25 26 The Buddy Bots 29. The Buddy Bots are software programs that, when installed on a 27 user’s computer, permit the user to “automate” his or her play of the Blizzard Mitchell Silberberg & Knupp LLP 7803901.11 28 Games. In other words, the Buddy Bots play the game while the user is away from 10 Case 2:16-cv-04860 Document 1 Filed 07/01/16 Page 12 of 29 Page ID #:12 1 his or her computer. Each of the Buddy Bots is designed to be used with a 2 particular Blizzard Game, and can only be used with that game: 3 (a) Honorbuddy is described by Defendants as the “best available [third] 4 party Bot for the game ‘World of Warcraft’ from Blizzard.” Defendants claim that 5 Honorbuddy supports every WoW expansion, and “soon” will support Blizzard’s 6 forthcoming and highly anticipated expansion “Legion.” Among other things, a 7 WoW player using Honorbuddy is able to accumulate in-game experience and 8 resources at a faster-than-normal rate, manipulate the in-game economy to the 9 player’s advantage, and unfairly defeat opponents. 10 (b) Demonbuddy is described by Defendants as the “best available 11 [third] party Bot for Blizzard’s Diablo 3.” Defendants claim that Demonbuddy 12 “picks up all gems, potions, gold, and magic items,” will “sell, keep or salvage any 13 items,” “is awesome for leveling,” and “farms [i.e. collects] gold for you.” Players 14 using Demonbuddy are able to gather equipment, currency, and materials at a far 15 greater rate than players who play legitimately. 16 (c) Stormbuddy is described by Defendants as “The Bot for HOTS 17 [Heroes of the Storm].” Using Stormbuddy, a player may allow the computer to 18 compete in his or her stead, easily defeating most human opponents and unfairly 19 gaining experience and in-game currency. 20 (d) Hearthbuddy is described by Defendants as “the Bot for 21 Hearthstone.” Defendants claim that using this product, players may “Win GOLD, 22 level your Heroes in Hearthstone, [and] play and win ranked games.” 23 30. Subscriptions for each of the Buddy Bots are sold through dedicated 24 websites owned and operated by Defendants, at a cost of 12.95 Euros 25 (approximately $14.50) per month or between 24.98 and 199 Euros (approximately 26 $28 to $224) for a yearly subscription. 27 Mitchell Silberberg & Knupp LLP 7803901.11 31. Defendants offer users in the United States technical support, 28 customer service, and other advice for the Buddy Bots through their online forums 11 Case 2:16-cv-04860 Document 1 Filed 07/01/16 Page 13 of 29 Page ID #:13 1 or through direct email correspondence. Among the support they offer is advice on 2 how to avoid being caught by Blizzard for using the Buddy Bots, how to download 3 and install the Buddy Bots, and how to most effectively use the Buddy Bots in the 4 Blizzard Games. Defendants also regularly solicit and receive feedback from users 5 of the Buddy Bots, which they incorporate to prevent Blizzard from detecting and 6 barring use of the Buddy Bots. 7 The Overwatch Cheat 8 9 32. On or about May 25, 2016 (the day after Overwatch was released to 10 the public), Defendants released the Overwatch Cheat. 11 33. The Overwatch Cheat is advertised by Defendants as an “ESP 12 Advantage for Overwatch.” The Overwatch Cheat purports to enable Overwatch 13 players to cheat in the game by displaying information such as the locations and 14 health status of hidden or obscured opponents. 15 34. Defendants sell licenses to use the Overwatch Cheat via their 16 dedicated website for a recurring subscription fee of 12.95 Euros (approximately 17 $14.50) per month or an annual fee of 199 Euros (approximately $224). 18 35. In order to use the Overwatch Cheat, users first must download the 19 software client from Defendants’ website and install that product on their personal 20 computers. When the Overwatch Cheat is launched, it presents an interface by 21 which a user may select which features to activate or deactivate, such as whether to 22 show a radar or whether to reveal the location of both hostiles and friendly players. Mitchell Silberberg & Knupp LLP 7803901.11 23 // 24 // 25 // 26 // 27 // 28 // 12 Case 2:16-cv-04860 Document 1 Filed 07/01/16 Page 14 of 29 Page ID #:14 1 2 3 4 5 6 7 8 9 10 11 12 13 14 36. Once a user of the Overwatch Cheat selects from the presented 15 options, the program renders a dynamic screen display that shows, in real time, 16 positional and other information as an Overwatch match is being played by the 17 user. Blizzard is informed and believes, and on that basis alleges, that the 18 Overwatch Cheat’s dynamic screen display is created by reading data (including 19 rendering data) that is created by the Overwatch software and that resides on the 20 user’s personal computer. Thus, in its normal course of operation, the Overwatch 21 Cheat generates a visual representation of gameplay, positional, health, map 22 layout, and other data from Overwatch. The visual display created by the 23 combination of the Overwatch Cheat’s overlay and the Overwatch game is 24 illustrated below: Mitchell Silberberg & Knupp LLP 7803901.11 25 // 26 // 27 // 28 // 13 Case 2:16-cv-04860 Document 1 Filed 07/01/16 Page 15 of 29 Page ID #:15 1 2 3 4 5 6 7 8 9 10 Defendants’ Unlawful Conduct 11 12 37. By creating, producing, marketing, distributing, and supporting each 13 of the Bossland Hacks, Defendants have engaged in a variety of unlawful activities 14 in the United States and have caused serious and continuing harm to Blizzard and 15 its products. 16 Unlawful Circumvention 17 18 38. Defendants incorporate technology into the Bossland Hacks that is 19 designed to avoid, bypass, or circumvent technological measures, including 20 Warden, used by Blizzard to prevent unauthorized access to the Blizzard Games 21 and restrict members of the public from hacking, manipulating, or improperly 22 exploiting the Blizzard Games. 23 39. One of the ways that Defendants seek to avoid, bypass, or circumvent 24 Warden is through use of a software application known as “Tripwire.” Defendants 25 describe Tripwire as follows: 26 27 Mitchell Silberberg & Knupp LLP 7803901.11 28 Tripwire is anti-spyware technology built into Bossland GmbH products to “watch the watchers.” Tripwire is always active. It is constantly looking at [Warden]. Tripwire will automatically render all active sessions of a 14 Case 2:16-cv-04860 Document 1 Filed 07/01/16 Page 16 of 29 Page ID #:16 1 Buddy bot as invalid if it detects [Warden] doing anything sneaky. Bossland GmbH can also manually activate Tripwire upon discovery of something untoward. 2 3 4 40. Blizzard is informed and believes, and on that basis alleges, that 5 Tripwire is incorporated into each of the Bossland Hacks. The sole purpose of 6 Tripwire is to avoid detection of the Bossland Hacks by Warden, and Defendants 7 advertise it as such. As Defendants post on their forum, “the Buddy bot is 8 responsible for avoiding client-side detection [i.e. Warden].” (emphasis added). 9 The Bossland Hacks would not have any commercial value or appeal without the 10 Tripwire technology incorporated therein. 11 12 13 Unlawful Access, Copying And Reverse Engineering 41. Blizzard is informed and believes, and on that basis alleges, that in 14 order to create, improve, test, and maintain the Bossland Hacks, Defendants or 15 freelance hackers operating in the United States, and acting at Defendants’ 16 direction, fraudulently obtained access to Blizzard’s software clients for each of 17 the Blizzard Games (or directed and caused others to do so). They did so by 18 purporting to assent to the EULA, without any intent to comply with its terms, in 19 order to improperly gain access to the software clients for the express purpose of 20 engaging in unauthorized copying, reverse engineering, disassembling, 21 decompiling, and/or creating derivative works of the Blizzard Games. 22 42. Blizzard is informed and believes, and on that basis alleges, that once 23 in possession of Blizzard’s copyrighted software code for the Blizzard Games, 24 Defendants or freelance hackers working in concert with them operating in the 25 United States engaged in multiple acts of unauthorized reproduction, adaptation, 26 and/or distribution of Blizzard’s copyrighted works in order to reverse engineer, 27 disassemble, decompile, and decrypt those works. Mitchell Silberberg & Knupp LLP 7803901.11 28 15 Case 2:16-cv-04860 Document 1 Filed 07/01/16 Page 17 of 29 Page ID #:17 1 43. The foregoing unauthorized acts of reproduction, distribution, and 2 adaptation were made solely for the purpose of developing or maintaining the 3 Bossland Hacks, which have no purpose other than to allow their users to cheat in 4 the Blizzard Games, and whose use is strictly prohibited by the EULA. Blizzard 5 has never authorized any of the Defendants or their contractors or employees to 6 engage in any of the foregoing acts; to the contrary, such conduct is expressly 7 prohibited by Blizzard in its EULA. 8 Defendants’ Intentional Interference With The EULA 9 10 44. Every time one of Defendants’ customers uses one of the Bossland 11 Hacks, that customer directly violates the EULA that each Blizzard customer must 12 enter into as a precondition to installing and playing the Blizzard Games. 13 45. Each of the Bossland Hacks is a single-purpose software program and 14 works only with the specific Blizzard Game that it has been designed for. 15 Therefore, none of the Bossland Hacks can be used without violating the EULA. 16 46. Defendants know that the Bossland Hacks cannot be used without 17 violating the EULA, but nevertheless encourage and induce their customers to use 18 the Bossland Hacks in violation of the EULA. Moreover, Defendants encourage 19 their customers in the United States to secretly commit ongoing and continuing 20 breaches of the EULA by, for example, counseling their customers about how to 21 avoid being caught by Blizzard for using the Bossland Hacks. Defendants even 22 have created special message boards to discuss Blizzard’s policing activities and to 23 report account bans, so that customers can gain a better understanding of how to 24 trick Blizzard and avoid being detected using the Bossland Hacks. 25 47. Recently, after Blizzard terminated the accounts of thousands of 26 Overwatch players as a result of their use of the Overwatch Cheat, Defendants 27 announced to the public that “[w]e are already working on a better way to handle Mitchell Silberberg & Knupp LLP 7803901.11 28 16 Case 2:16-cv-04860 Document 1 Filed 07/01/16 Page 18 of 29 Page ID #:18 1 detection,” thus confirming their deliberate intent to cause additional and ongoing 2 breaches of the EULA. 3 The Harm To Blizzard From Defendants’ Conduct 4 5 48. By their conduct, Defendants have caused and continue to cause 6 serious harm to the value of Blizzard’s games and to Blizzard’s online community. 7 Such harm is immediate, massive and irreparable, and includes (but is not limited 8 to) the following: 9 (a) Defendants irreparably harm the ability of Blizzard’s legitimate 10 customers in the United States to enjoy and participate in the online experience 11 carefully created by Blizzard. That, in turn, causes users to grow dissatisfied with 12 Blizzard’s games, lose interest, and stop playing. Blizzard is informed and 13 believes, and on that basis alleges, that thousands of customers have cancelled 14 World of Warcraft subscriptions, ceased playing the Blizzard Games, and/or 15 ceased purchasing goods and services (including virtual goods) for the Blizzard 16 Games as a result of the Bossland Hacks. 17 (b) Defendants’ conduct has forced Blizzard to spend enormous sums of 18 money (and vast amounts of time) attempting to remediate the damage caused by 19 the Bossland Hacks. This includes creating and releasing new versions of the 20 Blizzard Games that counteract the Bossland Hacks, responding to player 21 complaints, employing personnel to police the games to detect the use of the 22 Bossland Hacks, and “banning” (i.e., permanently deleting the accounts of) users 23 who are using the Bossland Hacks. 24 (c) Defendants’ conduct harms Blizzard’s reputation and results in the 25 loss of customer goodwill, in the United States and worldwide. 26 49. Defendants’ conduct has resulted in damage to Blizzard in an amount 27 to be proven at trial. By Blizzard’s estimation, such damage is in the tens or Mitchell Silberberg & Knupp LLP 7803901.11 28 hundreds of millions of dollars. Unless Defendants are preliminarily or 17 Case 2:16-cv-04860 Document 1 Filed 07/01/16 Page 19 of 29 Page ID #:19 1 permanently enjoined, Blizzard will continue to suffer severe harm from the 2 Bossland Hacks. 3 4 COUNT I 5 Trafficking In Circumvention Devices 6 50. Blizzard realleges and incorporates by reference the allegations in 7 paragraphs 1 through 49, as if set forth fully herein. 8 51. The Blizzard Games, including but not limited to the source code and 9 audiovisual game play environments, are copyrighted works. 10 52. Blizzard has incorporated into the Blizzard Games technological 11 measures, including Warden, that effectively control access to the Blizzard Games, 12 including access to the dynamic audiovisual elements that comprise the Blizzard 13 Games. 14 53. The Bossland Hacks are comprised of or contain technologies, 15 products, services, devices, components, or parts thereof (including Tripwire) that 16 primarily are designed or produced for the purpose of circumventing technological 17 measures, including Warden, that effectively control the access to copyrighted 18 works (the Blizzard Games), and that protect the exclusive rights of the copyright 19 owner (Blizzard). 20 54. The Bossland Hacks (and the portions thereof that circumvent 21 Warden) have no commercially significant purpose or use other than to circumvent 22 a technological measure that effectively controls access to a copyrighted work and 23 that protects the exclusive rights of a copyright owner. 24 55. Defendants market the Bossland Hacks in the United States with 25 knowledge of their use to circumvent Blizzard’s technological access controls. 26 56. As a result of the foregoing, Defendants are offering to the public, 27 providing, or otherwise trafficking in the United States in technology that violates Mitchell Silberberg & Knupp LLP 7803901.11 28 17 U.S.C. § 1201(a)(2). 18 Case 2:16-cv-04860 Document 1 Filed 07/01/16 Page 20 of 29 Page ID #:20 1 57. Defendants’ acts constituting DMCA violations have been and 2 continue to be performed without the permission, authorization, or consent of 3 Blizzard. 4 58. Defendants have violated Section 1201 of the DMCA willfully and for 5 private commercial gain. 6 59. Defendants’ conduct has caused damage to Blizzard and has unjustly 7 enriched Defendants, in an amount to be proven at trial. 8 60. As a result of Defendants’ acts and conduct, Blizzard has sustained 9 and will continue to sustain substantial, immediate, and irreparable injury, for 10 which there is no adequate remedy at law. Blizzard is informed and believes, and 11 on that basis avers, that, unless enjoined and restrained by this Court, Defendants 12 will continue to violate Section 1201 of the DMCA. Blizzard is entitled to 13 injunctive relief to restrain and enjoin Defendants’ continuing unlawful conduct. 14 61. As a direct and proximate result of Defendants’ conduct, pursuant to 15 17 U.S.C. § 1203(c), Blizzard is entitled to Defendant’s profits attributable to their 16 violations of 17 U.S.C § 1201. 17 62. Alternatively, Blizzard is entitled to the maximum statutory damages, 18 pursuant to 17 U.S.C. § 1203(c), in the amount of $25,000 with respect to each 19 violation by Defendants. 20 63. Blizzard further is entitled to its attorneys’ fees and full costs pursuant 21 to 17 U.S.C. § 1203(b). 22 23 COUNT II 24 Inducement To Infringe Copyright 25 64. Blizzard realleges each and every allegation set forth in Paragraphs 1 26 through 49, inclusive, and incorporates them by reference herein. 27 Mitchell Silberberg & Knupp LLP 7803901.11 65. Defendants have actively encouraged and induced others located in 28 the United States to engage in acts of copyright infringement. This includes 19 Case 2:16-cv-04860 Document 1 Filed 07/01/16 Page 21 of 29 Page ID #:21 1 encouraging and inducing third-party “freelancers” or contractors to fraudulently 2 obtain access to the Blizzard Games and then, having done so, to engage in 3 unauthorized reproduction of the Blizzard Games. Defendants also have 4 encouraged users of the Bossland Hacks (particularly the Overwatch Cheat) to use 5 those hacks to create derivative works, such as the dynamic screen overlay 6 generated by the Overwatch Cheat. 7 66. Defendants’ acts of infringement were willful, in disregard of, and 8 with indifference to the rights of Blizzard. 9 67. As a direct and proximate result, Blizzard is entitled to damages and 10 to Defendants’ profits in amounts to be proven at trial, which are not currently 11 ascertainable. Alternatively, Blizzard is entitled to maximum statutory damages of 12 $150,000 for each copyright infringed, or in such other amount as may be proper 13 under 17 U.S.C. § 504(c). 14 68. Blizzard further is entitled to its attorneys’ fees and full costs pursuant 15 to 17 U.S.C. § 505. 16 69. As a result of Defendants’ acts and conduct, Blizzard has sustained 17 and will continue to sustain substantial, immediate, and irreparable injury, for 18 which there is no adequate remedy at law. Blizzard is informed and believes, and 19 on that basis avers, that unless enjoined and restrained by this Court, Defendants 20 will continue to induce infringement of Blizzard’s copyrights in the United States. 21 Blizzard is entitled to injunctive relief to restrain and enjoin Defendants’ 22 continuing unlawful conduct. 23 24 COUNT III 25 Contributory Copyright Infringement 26 70. Blizzard realleges each and every allegation set forth in Paragraphs 1 27 through 49, inclusive, and incorporates them by reference herein. Mitchell Silberberg & Knupp LLP 7803901.11 28 20 Case 2:16-cv-04860 Document 1 Filed 07/01/16 Page 22 of 29 Page ID #:22 1 71. Defendants have, with knowledge, materially contributed to copyright 2 infringement in the United States. They have done so by enabling and encouraging 3 third-party “freelancers” or contractors to fraudulently obtain access to the 4 Blizzard Games and then, having done so, to engage in unauthorized reproduction 5 of the Blizzard Games. They also have done so by enabling users of the Bossland 6 Hacks (particularly the Overwatch Cheat) to use the software to create derivative 7 works, such as the dynamic screen overlay generated by the Overwatch Cheat. 8 72. Defendants’ acts of infringement were willful, in disregard of, and 9 with indifference to, the rights of Blizzard. 10 73. As a direct and proximate result, Blizzard is entitled to damages and 11 to Defendants’ profits in amounts to be proven at trial, which are not currently 12 ascertainable. Alternatively, Blizzard is entitled to maximum statutory damages of 13 $150,000 for each copyright infringed, or in such other amount as may be proper 14 under 17 U.S.C. § 504(c). 15 74. Blizzard further is entitled to its attorneys’ fees and full costs pursuant 16 to 17 U.S.C. § 505. 17 75. As a result of Defendants’ acts and conduct, Blizzard has sustained 18 and will continue to sustain substantial, immediate, and irreparable injury, for 19 which there is no adequate remedy at law. Blizzard is informed and believes, and 20 on that basis avers, that unless enjoined and restrained by this Court, Defendants 21 will continue to contribute to infringement of Blizzard’s copyrights in the United 22 States. Blizzard is entitled to injunctive relief to restrain and enjoin Defendants’ 23 continuing unlawful conduct. 24 25 COUNT IV 26 Vicarious Copyright Infringement 27 Mitchell Silberberg & Knupp LLP 7803901.11 76. Blizzard realleges each and every allegation set forth in Paragraphs 1 28 through 49, inclusive, and incorporates them by reference herein. 21 Case 2:16-cv-04860 Document 1 Filed 07/01/16 Page 23 of 29 Page ID #:23 1 77. When third-party “freelancers” or contractors in the United States 2 engage in unauthorized reproduction of the Blizzard Games, and when users of the 3 Bossland Hacks (particularly the Overwatch Cheat) in the United States use the 4 software to create derivative works, such as the dynamic screen overlay generated 5 by the Overwatch Cheat, they engage in copyright infringement. Defendants have 6 the right and ability to supervise and control the foregoing infringing conduct. 7 Defendants have failed and refused to exercise such supervision and control to 8 limit infringement to the extent required by law. Defendants derive a direct 9 financial benefit from this infringement. 10 78. Defendants’ acts of infringement were willful, in disregard of, and 11 with indifference to, the rights of Blizzard. 12 79. As a direct and proximate result, Blizzard is entitled to damages and 13 to Defendants’ profits in amounts to be proven at trial, which are not currently 14 ascertainable. Alternatively, Blizzard is entitled to maximum statutory damages of 15 $150,000 for each copyright infringed, or in such other amount as may be proper 16 under 17 U.S.C. § 504(c). 17 80. Blizzard further is entitled to its attorneys’ fees and full costs pursuant 18 to 17 U.S.C. § 505. 19 81. As a result of Defendants’ acts and conduct, Blizzard has sustained 20 and will continue to sustain substantial, immediate, and irreparable injury, for 21 which there is no adequate remedy at law. Blizzard is informed and believes, and 22 on that basis avers, that unless enjoined and restrained by this Court, Defendants 23 will continue to vicariously infringe Blizzard’s copyrights in the United States. 24 Blizzard is entitled to injunctive relief to restrain and enjoin Defendants’ 25 continuing unlawful conduct. 26 27 Mitchell Silberberg & Knupp LLP 7803901.11 28 22 Case 2:16-cv-04860 Document 1 Filed 07/01/16 Page 24 of 29 Page ID #:24 1 COUNT V 2 Intentional Interference With Contractual Relations 3 82. Blizzard realleges and incorporates by reference the allegations in 4 paragraphs 1 through 49, as if set forth fully herein. 5 83. As described herein, before installing the client software and playing 6 the Blizzard Games, licensed users in the United States first must assent to the 7 EULA, thereby creating contracts between the users and Blizzard. Among other 8 provisions, the EULA provides that the user may not “[c]reate, use, offer, 9 advertise, make available and/or distribute . . . Cheats [or] Bots.” 10 84. Blizzard’s contracts with its users are valid and enforceable. 11 85. Blizzard is informed and believes, and on that basis alleges, that 12 Defendants are aware of the contracts between Blizzard and its users in the United 13 States, and additionally are aware of the Blizzard EULA by virtue of their own 14 Blizzard accounts. Defendants specifically are aware that the EULA prohibits 15 players from using cheats or bots. Nevertheless, Defendants intentionally 16 encourage and induce users of the Blizzard Games to purchase and use the 17 Bossland Hacks, knowing that the use of these products by their customers is a 18 breach of these customers’ contracts with Blizzard. 19 86. By inducing licensed users to breach their contracts with Blizzard, 20 Defendants have intentionally interfered, and continue to interfere, with the 21 contracts between Blizzard and its users. 22 87. As a result of Defendants’ actions, Blizzard has suffered damage in an 23 amount to be proven at trial, including but not limited to loss of goodwill among 24 users of the Blizzard Games, diversion of Blizzard resources to attempt to detect 25 and prevent the use of Bossland Hacks, decreased profits, and loss of profits from 26 users whose accounts Blizzard has terminated for violation of the EULA in the 27 United States. Mitchell Silberberg & Knupp LLP 7803901.11 28 23 Case 2:16-cv-04860 Document 1 Filed 07/01/16 Page 25 of 29 Page ID #:25 1 88. As a further result of Defendants’ actions, Defendants have unjustly 2 obtained specifically identifiable property, consisting of all of the proceeds 3 attributable to the sale of the Bossland Hacks in the United States, and any other 4 products or services that violate any of Blizzard’s rights, and any additional 5 property traceable to those proceeds. Those proceeds, which are directly 6 attributable to Defendants’ manipulation and misuse of the Blizzard Games and 7 intentional interference with Blizzard’s contracts, rightfully and equitably belong 8 to Blizzard. 9 89. Defendants’ intentional interference with the contracts between 10 Blizzard and its licensed users in the United States entitles Blizzard to injunctive 11 relief and compensatory damages, the imposition of a constructive trust over 12 Defendants’ wrongfully obtained proceeds, and other available relief. 13 90. Defendants are guilty of oppression, fraud, or malice, and Blizzard, in 14 addition to its actual damages, by reason thereof, is entitled to recover exemplary 15 and punitive damages against Defendants. 16 17 COUNT VI 18 Unfair Competition 19 91. Blizzard realleges and incorporates by reference the allegations in 20 paragraphs 1 through 49, as if set forth fully herein. 21 92. The acts and conduct of Defendants constitute unfair competition in 22 the United States under California Business & Professions Code § 17200 et seq. 23 and under California common law. 24 93. As a direct and proximate result of Defendants’ unfair competition in 25 the United States, Blizzard has been damaged, and Defendants have been unjustly 26 enriched, in an amount to be proven at trial for which damages and/or restitution 27 and disgorgement is appropriate. Such damages and/or restitution and Mitchell Silberberg & Knupp LLP 7803901.11 28 disgorgement should include a declaration by this Court that Defendants are 24 Case 2:16-cv-04860 Document 1 Filed 07/01/16 Page 26 of 29 Page ID #:26 1 constructive trustees for the benefit of Blizzard, and an order that Defendants 2 convey to Blizzard the gross receipts received or to be received that are attributable 3 to the sale of the Bossland Hacks in the United States. 4 94. Defendants are guilty of oppression, fraud or malice, and Blizzard, in 5 addition to its actual damages, by reason thereof, is entitled to recover exemplary 6 and punitive damages against Defendants. 7 95. As a result of Defendants’ acts and conduct in the United States, 8 Blizzard has sustained and will continue to sustain substantial, immediate, and 9 irreparable injury, for which there is no adequate remedy at law. Blizzard is 10 informed and believes, and on that basis avers, that unless enjoined and restrained 11 by this Court, Defendants will continue to engage in unfair competition. Pursuant 12 to California Business & Professions Code § 17203, Blizzard is entitled to 13 temporary, preliminary and permanent injunctions prohibiting further acts of unfair 14 competition. 15 PRAYER FOR RELIEF 16 17 WHEREFORE, Blizzard prays that this Court enter judgment in its favor on 18 each and every claim for relief set forth above and award it relief, including but not 19 limited to an order: 20 1. Preliminarily and permanently enjoining Defendants, their officers, 21 employees, agents, subsidiaries, representatives, distributors, dealers, members, 22 affiliates, and all persons acting in concert or participation with Defendants from: 23 (i) trafficking in circumvention devices in the United States; (ii) inducing, 24 contributing to, or facilitating third-party infringements of Blizzard’s copyrighted 25 works in the United States; (iii) intentionally interfering with Blizzard’s contracts 26 with players in the United States; and (iv) engaging in unfair competition in the 27 United States. Mitchell Silberberg & Knupp LLP 7803901.11 28 25 Case 2:16-cv-04860 Document 1 Filed 07/01/16 Page 27 of 29 Page ID #:27 1 2. Requiring Defendants to shut down the Bossland Hacks and any 2 colorable copies thereof, hosted at any domain, address, location, or ISP. 3 3. Requiring Defendants to deliver to Blizzard all copies of materials 4 that infringe or violate any of Blizzard’s rights, as described herein. 5 4. Requiring Defendants to provide Blizzard with an accounting of any 6 and all sales of products or services in the United States that infringe or violate any 7 of Blizzard’s rights, as described herein. 8 5. Awarding Blizzard actual or statutory damages for copyright 9 infringement and willful infringement under 17 U.S.C. § 504, as appropriate. 10 6. Awarding Blizzard its full costs and attorneys’ fees in this action 11 pursuant to 17 U.S.C. § 505 and other applicable laws. 12 7. Awarding Blizzard exemplary and punitive damages against 13 Defendants on Blizzard’s fifth cause of action for intentional interference with 14 contractual relations. 15 8. Awarding Blizzard restitution of Defendants’ unlawful proceeds, 16 including an accounting of any and all sales of the Bossland Hacks in the United 17 States, and/or any other products or services that violate any of Blizzard’s rights 18 described herein. 19 9. Imposing a constructive trust over the proceeds unjustly obtained by 20 Defendants through the sales of the Bossland Hacks in the United States, and/or 21 any other products or services that violate any of Blizzard’s rights described 22 herein. Mitchell Silberberg & Knupp LLP 7803901.11 23 // 24 // 25 // 26 // 27 // 28 // 26 Case 2:16-cv-04860 Document 1 Filed 07/01/16 Page 28 of 29 Page ID #:28 1 10. Awarding such other and further relief as this Court may deem just 2 and appropriate. 3 4 Dated: July 1, 2016 5 6 7 8 9 KARIN G. PAGNANELLI MARC E. MAYER EMILY F. EVITT DANIEL A. KOHLER MITCHELL SILBERBERG & KNUPP LLP By: /s/Marc E. Mayer Marc E. Mayer Attorneys for Plaintiff Blizzard Entertainment, Inc. 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 Mitchell Silberberg & Knupp LLP 7803901.11 28 27 Case 2:16-cv-04860 Document 1 Filed 07/01/16 Page 29 of 29 Page ID #:29 JURY DEMAND 1 2 Plaintiff Blizzard Entertainment, Inc. hereby demands a trial by jury on all 3 matters and issues so triable. 4 5 Dated: July 1, 2016 6 7 8 9 10 KARIN G. PAGNANELLI MARC E. MAYER EMILY F. EVITT DANIEL A. KOHLER MITCHELL SILBERBERG & KNUPP LLP By: /s/Marc E. Mayer Marc E. Mayer Attorneys for Plaintiff Blizzard Entertainment, Inc. 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 Mitchell Silberberg & Knupp LLP 7803901.11 28 28