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1、2008,ANNUAL REPORT,1,3,5,11,16,20,22,23,24,26,30,32,Table of Contents,A Message from Michael D.Gallagher.,Federal Government Affairs.,State Government Affairs.,Intellectual Property Policy.,Anti-Piracy Program.,Media Relations.,E3 Media&Business Summit.,Video Game Voters Network.,Research.,Entertain
2、ment Software Rating Board(ESRB).,ESA Canada.,The ESA Foundation.,Entertainment Software Association 2008,1,A Message from Michael D.GallagherDear Friends:,I am proud to submit to you Entertainment SoftwareAssociations(ESA)Annual Report for Fiscal Year 2008,our 13th year as the association represent
3、ing theentertainment software industrys business and publicaffairs needs.After undergoing an intensive listeningtour of ESAs members and key stakeholders,I canconfidently say that we are on a new path one whichhas ESA mirroring the same respect and dominancethe industry itself is enjoying.This was a
4、 year of bothchallenge and accomplishment.The report providesa detailed review of how we have represented yourinterests across a wide range of fields and how we werecareful,responsible stewards of your resources.Id liketo share a few highlights with you here.W ESA fielded a ground-breaking study on
5、the specificeconomic contributions of the entertainment softwareindustry to the U.S.economy.A key finding of thereport found that the U.S.computer and video gameindustrys annual growth rate from 2003 to 2006exceeded 17 percent.This rate far outpaces the U.S.economy as a whole,which only grew at an a
6、verageof 2 percent per year during this same period.W At the Federal level,we prevented enactment of anyharmful copyright legislation,and positive progresswas made as policymakers became better informedabout the ESRB rating system and the industrys self-regulatory practices.Federal Government Relati
7、ons(FGA)staff increased education and outreach effortsof the video game industry to the House CommerceCommittee in advance of a hearing on“Violencein the Media,”focusing mostly on TV violence andrecent Federal Communications Commission reportfindings.In addition,ESAs presence on Capitol Hillthrough
8、one-on-one meetings,as well as special,events where we showcased member productsfurther raised the visibility and understanding ofthe entertainment software industry among keypolicymakers and staff in Washington.W At the state level,not a single bill regulating thesale of violent games was enacted.W
9、 On August 6,2007,Judge Ronald Whyte ruled infavor of an ESA Motion for Summary Judgment,permanently enjoining enforcement of the Californiaviolent video game law that was filed back inDecember 2005.The court ruled that video gamesare protected by the First Amendment and foundthat there was no evide
10、nce that playing violentgames resulted in real world violence.Judge Whytefound that“the state has not shown that the Actwill accomplish the goal of protecting childrenmore effectively than existing,narrower industrystandards.”With respect to scientific evidence,JudgeWhyte found that there is no show
11、ing that violentgames,in the absence of other violent media,causeinjury to children.In addition,evidence presenteddid not demonstrate that video games even thoughinteractive are more harmful than movies,televisionor other speech related exposures.Governor ArnoldSchwarzenegger has appealed the decisi
12、on but oralarguments have not yet been scheduled.W The anti-piracy enforcement programs in Brazil,Hong Kong,Mexico,and Singapore continued toshow significant positive results.Our Canadianprogram persued and obtained actions against gamepirates distributing and selling infringing products.Meanwhile,o
13、ur online monitoring and takedownefforts continued to address online infringements ofmember companies IP rights in over 100 countriesESA Entertainment Software Association,2,across the world.ESAs outside monitoring servicedetected a monthly average of more than 700,000infringements of the 200 member
14、 titles that ESAmonitors,ESA sent out more than six milliontakedown notices to ISPs in response to theseviolations.W ESAs ongoing media relations program garneredassociation and industry prominence through theproactive pitching of new and engaging story anglesto gaming press and mainstream media out
15、lets.Outreach efforts also focused on educating reporters,journalists,and editors about the issues facing ourindustry helping to ensure balanced coverage andmore positive and objective looks at the computerand video game industry.With the landmark legalrulings,the evolution of the E3 Media&BusinessS
16、ummit,and a new study showcasing how our in-dustry drives many sectors of the U.S.economy,theESAs media relations department had an unparal-leled year in promoting the industry and expandingawareness of key issues and facts.W The Video Game Voters Network(VGVN),thegrassroots organization created for
17、 voting-agedAnnual Report 2008,gamers to organize and take action on importantissues affecting the industry,grew to well over100,000 members.To date,VGVN activists havesent over 44,000 letters to Capitol Hill and statelegislators across the country.W The inaugural E3 Media&Business Summit withits mo
18、re intimate feel with targeted,personalizedmeetings and activities was well-received bothamong the press and key industry constituencies.The second show with the new format will be held inLos Angeles,July 15-17,2008.Credit for our success goes to the record breakingyear we had by our member companie
19、s,broadening,innovating,and delivering great content to the videogame market place.In addition,I thank our dedicatedboard members who generously give of their time andleadership to guide ESAs efforts.Finally,I thank thetimeless efforts of the committed individuals who makeup the ESA staff and the En
20、tertainment Software RatingBoard(ESRB).With all of the continued support,Ibelieve ESA is well-positioned to advance the issues ofthe computer and video game industry.,3,Federal Government Affairs,IN FY 08,ESA ADVANCED the industrys objectiveson Capitol Hill by increasing its involvement indiscussion
21、s on legislation impacting ESA membersand hosting numerous events and briefingshighlighting the computer and video game industry.ESAs Federal Government Affairs(FGA)staff focusedits work on two priority issue areas identified by ESAsPublic Policy Committee(PPC):content regulationand copyright/intell
22、ectual property protection.Inaddition,FGA staff took significant steps towardincreasing the visibility and understanding ofthe entertainment software industry among keypolicymakers and staff on Capitol Hill.Priority IssuesCONTENT REGULATIONIn FY 08,congressional attention on the entertainmentsoftwar
23、e industry focused at times on video game contentand regulation.The following is a summary of key FY 08developments:W Sen.Sam Brownback(R-Kan.)introduced a billcalling for full-game review by the EntertainmentSoftware Rating Board(ESRB)and for governmentstudies on ESRBs accuracy and the effectivenes
24、s ofan independent system;W Reps.Bobby Rush(D-Ill.)and Fred Upton(R-Mich.)introduced a bill penalizing game companies thatknowingly withhold pertinent ratings informationfrom ESRB;W Sens.Joseph Lieberman(I-Conn.),Hillary Clinton(D-N.Y.)and Brownback introduced a bill seekingresearch into the possibl
25、e effects of violent mediaon childrens behavior;,W National Institute on Media and the Family(NIMF)held its annual“Report Card”press event;W Former Presidential candidate Mitt Romneys(R)campaign released a television ad targeting violentmedia and video games;andW Representative Joe Baca(D-Calif.)int
26、roduced a billcalling for the Federal Trade Commission to studyESRBs effectiveness and the General AccountingOffice to study the effects of games on children.However,considerable positive progress was madethis year as policymakers became better informedabout the ESRB rating system and the industrys
27、self-regulatory practices.FGA staff increased educationand outreach efforts of the video game industry to theSenate Commerce Committee in advance of a hearing on“Violence in the Media.”In the House of Representatives,FGA staff lobbiedextensively against harmful content regulation legislationand at t
28、he close of FY 08,no action had been takenon content legislation affecting ESA members or theESRB.Furthermore,ESA continued congressionaleducation efforts by arranging a staff briefing by ESRBPresident Pat Vance on its rating system.Two importantHouse members circulated a letter to all House offices
29、commending the ESRB and asking staff to attend thebriefing.Also in FY 08,Rep.Rush held a hearing toinvestigate negative stereotypes in entertainment.Thehearing mostly focused on music,and included testimonyby an industry executive.Through FGAs work withHouse Commerce Committee members,the executives
30、testimony,and overall contribution to the hearing,committee members made numerous positive statementsabout the industry.ESA Entertainment Software Association,4,Additionally in FY 08,the Federal Trade Commission(FTC)released its latest“Report to Congress on theMarketing and Advertising Practices of
31、the Movie,Music,and Video Game Industries.”The report included severalfavorable findings related to the industry and the ESRBsrating system.INTELLECTUAL PROPERTY PROTECTIONESAs other priority area of focus in Congress ismaintaining strong intellectual property protectionin the United States and abro
32、ad.FGA staff monitoredseveral copyright-related initiatives that could havea significant impact on the entertainment softwareindustry.These initiatives include a bill aimed atweakening the anti-circumvention protections in theDigital Millennium Copyright Act(DMCA),patent reform,and intellectual prop
33、erty enforcement legislation.,Additionally,FGAs Intellectual Property objectivesinclude obtaining congressional support for strongintellectual property provisions in free tradeagreements.In FY 08,Congress passed a free tradeagreement with Peru,and in early FY 09,will likelyconsider a free trade agre
34、ement with Colombia.PRIORITY INDUSTRY EVENTSIn FY 08,FGA increased the visibility of its membercompanies and their products with audiences includingcongressional staff.FGA accomplished this goal by:holding numerous events in ESAs offices highlightingvarious games for congressional staff;hosting itsa
35、nnual industry technology event on Capitol Hill,whichattracted 40 legislators and over 400 congressionalstaff;and participating in issue briefings.Each of theseevents generated positive dialogue about the industry,and were well-attended by key audiences.Legislation was again introduced in FY 08 to o
36、verturn,key protections of the DMCA vital to the entertainmentsoftware industry and other copyright-based industries.The bill allows for legal and widespread circumventionof copy protection measures and would pave the wayfor uncontrollable and massive piracy.ESA and othersstrongly opposed the bill,a
37、nd it stalled in Congress.ESA closely monitored and reported on developmentsrelated to patent reform legislation,which passed theHouse in FY 08.Senate action on patent legislationis expected in early FY 09.Late in FY 08,the HouseJudiciary Committee Chairman and several other membersintroduced a pack
38、age of intellectual property enforcementprovisions.The House measure was a counterpart tothe Senate intellectual property enforcement legislationintroduced early in FY 08 by Senate Judiciary CommitteeChairman.FGA and ESAs IP Policy Team are monitoringthe progress of each legislative package and work
39、ingclosely with House and Senate Judiciary Committeestaff to ensure the industries views are included as thelegislation is considered.Annual Report 2008,In addition,ESA hosted a briefing for congressionalstaff with Sen.Ted Stevens(D-Ark.)of the SenateCommerce Committee and Federal CommunicationsComm
40、issioner Deborah Tate highlighting the importanceof Internet safety programs.Web Wise Kids wasprominently featured at the Senate briefing.FGA staff organized meetings with Members ofCongress for the ESA CEO,ESA member companiesvisiting Washington,D.C.,and others relevant to theindustry to further in
41、crease the visibility of the videogame industry.,5,State Government Affairs,THE ESAS STATE AND LOCAL government affairsprogram has four primary goals:W Stop bills seeking to regulate the sale of videogames,including the imposition of taxes based ongame content;W Develop positive relationships with l
42、egislativeleaders,governors,and state attorneys general,to enhance the industrys access,influence,andcredibility;W Secure tax incentives benefiting the video gameindustry;andW Identify,defeat or amend legislation that increaseslegal liability and/or costs including,but not limitedto piracy,intellect
43、ual property,product warningspackaging,signage,privacy or the Internet.,enacted;however,no bills to regulate the sale of videogames were enacted.ESA developed and enhanced relationships withretailers and national and state retail organizations,encouraging them to support the ESRB rating systemand ES
44、A at legislative hearings.SGA also worked withkey legislative leaders,state attorneys general andopinion leaders across the country to educate them onour positive industry efforts.The following are highlights of state and local levelefforts.ColoradoIn Denver,ESA defeated an ordinance prohibiting ads
45、,for M-rated games on public transportation.To accomplish these goals,ESA established a network,of legislative advocates and allies across the country tohelp monitor and respond to legislation that affects theentertainment software industry.In FY 08,ESA continued to face state governmentchallenges,i
46、ncluding attempts to regulate the sale ordistribution of video games.A total of 75 bills werepending in 27 states as well as the District of Columbiaand Puerto Rico.Thirty-six bills sought to regulate content and/or accessto video games.In general,most of the bills attemptedto limit a minors access
47、to violent or M-rated games.Of the 75 bills pending at the state and local levelin 2007,22 content bills and 27 tax incentive billscarried over to the 2008 legislative session.Seven bills,ConnecticutLegislation improving tax credits for qualified andeligible Connecticut productions,including videoga
48、mes,was enacted.DelawareLegislation regulating the sale or rental of M-or AO-rated games was introduced.The bill also requiredproof of age prior to sale or rental of a video game,prohibited a person from selling or renting a videogame,if rated,unless the official rating is clearlydisplayed,and requi
49、red unrated games to be somarked.As a result of ESA efforts,legislators agreedto cancel the bill hearing and instead meet with theESA and ESRB to learn more about the rating system.,providing tax incentives for game development wereESA Entertainment Software Association,6,FloridaESA supported legisl
50、ation providing an economicincentive to encourage interactive entertainment projectsin the state.The legislation was enacted and becameeffective in July 2007.IndianaBipartisan legislation,which regulated the sale ofM-and AO-rated games was introduced.The bill wasoriginally assigned to the Correction
