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Internet Sony Lawsuits Force Lik-Sang to Close Doors
Chris Peredun - October 24, 2006 12:19 PM
Print E-mail del.icio.us 50 comment(s) - last by MamiyaOtaru.. on Oct 29 at 8:42 PM
Hong-Kong based importer forced to throw in the towel

Just four days after the UK High Court ruled that sales of Japanese PSPs were illegal in the EU, setting the precedent for further legal action; Lik-Sang has officially shut its doors.

The Hong-Kong based company posted a notice on their website announcing the closure and that all existing orders will be refunded. Outstanding RMAs, shipping requests, or store credits will be taken care of by Lik-Sang's customer service department.

Sony did not comment directly on the reasons for requesting the previous ruling and subsequent lawsuits, but commented at other locations that they were "trying to protect consumers from being sold hardware that does not conform to strict EU or UK consumer safety standards, due to voltage supply differences et cetera; is not - in PS3's case - backwards compatible with either PS1 or PS2 software; will not play European Blu-Ray movies or DVDs; and will not be covered by warranty."

Lik-Sang isn't taking kindly to being shut down in such a manner, and has gone so far as to name a list of Sony Europe's top director staff that had purchased PSP hardware and software from Lik-Sang as early as December 2004, much before the official European launch.

Former marketing manager Pascal Clarysse had no kind words for Sony either. "Blame it on Sony. That's the latest dark spot in their shameful track record as gaming industry leader. The Empire finally 'won', few dominating retailers from the UK probably will rejoice the news, but everybody else in the gaming world lost something today."

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what is Sony doing...
By InuYasha on 10/24/2006 12:37:15 PM , Rating: 2
sad day for people who likes imported games. How does this help Sony in anyway in terms of sales? People who buys imports usually buys native copy too.




RE: what is Sony doing...
By ArtanisDTS on 10/24/2006 12:41:30 PM , Rating: 3
Indeed it is a sad day for gamers worldwide :(

RIP Lik-sang, you served us gamers who couldn't get access certain games or products and we thank you for that.

God I am hating Sony so much right now. Did someone say boycott?? I must be hearing voices in my head...


RE: what is Sony doing...
By tuteja1986 on 10/24/2006 1:10:03 PM , Rating: 3
How does sony even get away with this :( i have bought so many things from lik-sang. I bought so many things from that website ;( it was my fav game import source. Well if sony close down www.playasia.com then i am going to supper pissed off.

"Lik-Sang points out that the Lik-Sang products contained genuine Sony 100V-240V AC Adapters that carry CE and other safety marks and are compatible world-wide, and that all PSP consoles were in conformity with all EU and UK consumer safety regulations." >> its alright for company to outsource from china but its not alright to import stuff :( . What happened to our free market right.


RE: what is Sony doing...
By tuteja1986 on 10/24/2006 1:11:30 PM , Rating: 2
List of high profile sony employee buying goods from lik-sang

"The list of PSP related Sony Europe orders reads like the who's who of the videogames industry, and includes Ray Maguire (Managing Director, Sony Computer Entertainment Europe Ltd), Alan Duncan (UK Marketing Director, Sony Computer Entertainment Europe Ltd), Chris Sorrell (Creative Director, Sony Computer Entertainment Europe Ltd), Rob Parkin (Development Director, Sony Computer Entertainment Europe Limited), just to name a few".


RE: what is Sony doing...
By akugami on 10/24/2006 9:34:53 PM , Rating: 2
Simple in this case, politicians in Europe and various European governments aren't getting a cut of the goods (tax, specifically VAT's). You in Europe can complain all you want. It won't do you any good.

BTW, I see this closing of any import loopholes to be even more far reaching than just video games. I'm sure there are any number of non electronics products being mail ordered to Europe that may now be forced to stop selling there. Have fun with your high prices. Thank your governments because that's who is responsible.


RE: what is Sony doing...
By Madellga on 10/25/2006 1:44:32 AM , Rating: 2
Wrong, if you import something (even through mail order) you will have to pay custom duties and VAT when the package arrive at your door.

Not having to pay it is pure luck. I frequently buy stuff from Amazon.com and have always to pay 25% from the invoice tax concerning custom duties and vat.


I hate Sony
By DEredita on 10/24/2006 1:14:24 PM , Rating: 5
Hey Sony, I am looking forward to buying that Nintendo Wii next month. Hopefully, there is some justice in this world and your bully tactics will be paid back by having store shelves stocked with PS3 collecting dust, while Microsoft and Nintendo dominate the video game console market.




RE: I hate Sony
By gramboh on 10/24/2006 1:43:20 PM , Rating: 4
Nope, morons will still line up to buy it.


RE: I hate Sony
By ATC on 10/24/2006 7:51:38 PM , Rating: 2
I like Sony as much as I like zucchini on my ice-cream but let's be fair.

Put any big corporation in Sony's position here and they would have done the exact same thing.

If my memory serves me, MSFT has done much, much worse than this in battling grey market. And so have dozens of other companies.

So as much fun as it sounds repeating everyone else's replies and calling Sony the Devil, it's certainly far from unbiased.


RE: I hate Sony
By Xavian on 10/25/2006 4:12:50 AM , Rating: 2
as far as i know, Nintendo doesn't care about importing, since they sell their hardware at a profit, so honestly they don't care where people get their consoles from.

The problem lies in this, Sony and Microsoft sell their consoles for a large loss, they make the profit up (or attempt to) via software licences, until they get to the point where their hardware can be profitable. Now if you buy imported consoles, which Sony sells at a loss, from the US, then you import games from the US, then sony would be unable to use ludicrous pricing in the EU market. Sony would lose money on the main product that balances the books, which is a no-no for Sony.

However in the long run all this bad press will hurt Sony (mainstream press that is); and ill be glad when they gain some humility and respect for customers.


By kilkennycat on 10/24/2006 1:58:18 PM , Rating: 2
This article says so. Is that true ?

I recall very well about a year ago Sony categorically stating that the PS3 would be fully backward compatible with PS2 software -- one of their many justifications for its expect high price. The Xbox360 at least makes some attempt at backward compatibility.




By ToeCutter on 10/24/2006 2:52:52 PM , Rating: 2
quote:
This article says so. Is that true ?


You gotta link the article, bubba.



By CrackRabbit on 10/24/2006 2:59:09 PM , Rating: 2
I think the Daily Tech article was trying to point out a Japanese PS3 imported to Europe would be unable to play European games.
With that being said, I am sad to see Lik-Sang go. :(


By Chris Peredun on 10/24/2006 3:54:01 PM , Rating: 3
quote:
I think the Daily Tech article was trying to point out a Japanese PS3 imported to Europe would be unable to play European games.


Correct. Also note that quote is from a Sony rep, and not my own words.


Whatever
By exdeath on 10/24/2006 2:28:28 PM , Rating: 2
"trying to protect consumers from being sold hardware that does not conform to strict EU or UK consumer safety standards"

Total “we care about you, honest we do” bullshit.

It's more like "we want to maintain tight control of the market and support artificial segmentation, etc.” I can’t stand the concept of ‘market segments’ and that someone can tell me what I can and can’t purchase based on where I live. In most cases companies do this when they are making a killing on a product in one country but want to market it to a poorer country with a different monetary scale. As a made up example, selling your $2500 HDTV in India for $500 and still being profitable, and then banning import so you are forced to pay $2500 knowing full and well at least $2000 is pure markup.

But I don’t see the issue with the products listed which have universal prices and such. So somebody is willing to import to get something early? Oh boo fuking hoo. Regardless of if that person imports a Japanese PS3 in America or buys an American PS3, it is one person who bought one PS3, so what is the issue again?

No surprise that the socialists over there would support the caste division that global market separation like this entails. What is the honest problem with buying products from another market, esp. when the manufacturer of that product refuses to release the product in your own market?

A simpler example is the way Hollywood 'bans' DVD regional availability of a title until it's no longer in theaters. While this has obvious implications, Hollywood doesn’t lie about it and say it’s for our safety and convenience or similar such BS.

And to protect people from voltage differences? OH PLEASE *PUKE*. The people that know how to look for and how to import a very specific electronic product is in the minority of enthusiasts and are already aware of these issues. It’s not like some average soccer mom that needs a new blender is going to order one from China and expect it to plug right into the wall.




RE: Whatever
By exdeath on 10/24/2006 2:41:14 PM , Rating: 3
I'm not saying this is the reason, as far as I know there isn't too much of a price difference between regions for things like the PS3.

But in general:

If a company is profitable with X product at Y price in one part of the world, it is profitable, period.

Charging more for a product in one country than another is discrimination and is the same idea as saying "rich people should have to pay more because they have more money."

And why is it we always here about companies embracing the ‘global market’ but as separate segments? Sounds like another ‘separate but equal’ ideology.


RE: Whatever
By exdeath on 10/24/2006 2:53:54 PM , Rating: 2
Just for the record, I'm all for capitalism and companies making products to make profit. So when I say “all companies care about is themselves and making money” I'm not saying it to be cynical. It’s the truth, a truth I don't have a problem with because that’s how it’s supposed to be. Everyone out for themselves is the root of capitalism and the reason the system works so well.

So now, establishing that everybody and every company only looks out for their own best interests, and that’s how we want it to be, I say this, which is where my comments above are rooted:

Be immediately suspicious of any company that says they are doing something for your safety or your own interest. They aren’t. And often times when they do claim to be doing so, they are doing it to hide some unscrupulous action they don’t want you to know about.


RE: Whatever
By dannybek on 10/24/2006 8:13:31 PM , Rating: 2
Ain't that the truth?
All companies care about is the bottom line. They don't care about the enviorment. They don't care about what people want.

What Corporations and businesses care about:
Profits! The cabbage! The long green! Money! $$$ Cha-Ching!
Executives, shareholders.

What corporations and businesses don't care about:
Everything else including YOU!


Give me a Break
By dannybek on 10/24/2006 8:09:49 PM , Rating: 2
All this bitching and moaning of Sony screwing the consumers. "Oh! Im Supper pissed off!!" "Oh.. Sony you're so naughty! Shame on you! Boycott!! Boycott!" But in the end you're all creatures of habit and cannot exercise self-control or self-discipline to even start a boycott of Sony products.
You know that you can bitch and moan all you want but you're still gonna go to the store and pay outrageously high prices cause you just can't control yourselves.
give me a break.




RE: Give me a Break
By Chris Peredun on 10/24/2006 8:55:03 PM , Rating: 3
Personally, I sold my PS2 and PSP, and have nothing Sony in the house save for an old copy of MGS3 that I haven't been able to find and take to Blockbuster for credit.

You go right ahead and bleat for yourself. I'm sure you'll be "Supper" angry with me for writing this too. Hopefully I'll get my just desserts.


Big Ouch....
By keitaro on 10/24/2006 12:38:08 PM , Rating: 2
Here's a SlashDot article regarding the same news:

http://games.slashdot.org/article.pl?sid=06/10/24/...

It's sad to see Lik-Sang close up like that. I rather like importing things, even if it's merchandises not related to video games.

Post your thoughts and try not to bash Sony. Would be nice to hear some constructive criticisms from those who have done business with Lik-Sang.




RE: Big Ouch....
By blckgrffn on 10/24/2006 3:44:26 PM , Rating: 2
Lik-Sang sent me a Component cable for my gamecube that was no longer available retail and cheaper than Ebay. They were easy to work with and shipped right away. Where will people get stuff like that now?

Nat


a step too far
By pepsimax2k on 10/24/2006 1:29:47 PM , Rating: 2
sony gets 0 money from me henceforth. and i'll do my best to ensure products i buy feature no sony manufactured components, though that may be a good thing, i hear they have a tendancy to explode...




RE: a step too far
By dannybek on 10/24/2006 8:21:00 PM , Rating: 2
I am willing to bet that someday in the near future Sony is going to lower it's astronomically high prices to something that is down to down to earth, which you consider a "killer deal" and buy it.

Sony knows that there are people like you. So what do they do? !!!!! BIG SONY SALE!!!!!! CHEAP !!!!! HIGH QUALITY JAPENIS STUFF!!!


Sony on the ropes?
By ToeCutter on 10/24/2006 1:56:10 PM , Rating: 2
I'm wondering if this seemingly obscure story is an indication of bigger problems at Sony. Why take such an extreme position to protect .01% of Euro market share? Lik-Sang has been around for years and it's only now that Sony has an issue with them?

Folks, Sony finds themselves in a seriously bad way. If the situation with the American automotive industry serves any lesson it's that large corporations are not infallible simply because they are big.

Sony has lost unprecedented market share in several key electronics markets, some of which they've dominiated for years. Portable music (lost to Apple), televisions (lost primarily to Chinese and Korean manufacturers), gaming consoles (PS3 won't come near to PS1/PS2 sales and Nintendo is pummeling PSP with DS Lite) and most recently PC displays (a market which I understand they've completely exited from).

Check the shelves at your nearest retailer: DVD players, HT receivers, notebook PCs, very few consumer electronics still carry the Sony name.

The losses continue to mount in both electronics, as well as their music and movie labels. Sony expects to lose nearly $2 BILLION in the next 6 months.

Litigation the likes of which we're seeing with Lik-Sang is indicitive of an organization on the ropes, considering extreme measures to stop the flow of red ink. Stringer was brought in to turn things around, but those plans seem to be failing as Sony continues to lose market share (and capital value).

With so much uncertainty and doubt surrounding PS3, Sony is in great peril of imploding.

A truly sad predicament for any gamer...




RE: Sony on the ropes?
By clayclws on 10/24/2006 2:20:32 PM , Rating: 2
You know what? I am hoping Samsung would eliminate Sony for good. I don't think what Lik-Sang did would hurt Sony's business at all. Sony (divisions) are the one that hurt themselves all the time. If Sony want to be talking about strict rules and complying to all the standards...why the hell are they recalling all those batteries?


I was planning on getting the ps3
By tfk11 on 10/24/2006 2:02:23 PM , Rating: 4
I find it difficult to purchase any more sony products after hearing this news. Voting at the polls may be pointless but voting with your dollars is becoming more important every day. Hopefully Nintendo doesn't pull any stunts like this so I can pick up a wii.




The law only protects the creator
By viperpa on 10/24/2006 3:54:07 PM , Rating: 2
The law is to protect the business, not the comsumer. These type of laws are only there to protect the media and entertainment companies. It would be like bringing a DVD over to Europe from the states. I couldn't play it due to the region code. It's bull**** if you ask me.





By dannybek on 10/24/2006 8:18:29 PM , Rating: 2
Since when do businesses have rights? Businesses abide by the law when it is in their best interests to do so, (i.e. profits! Cha-Ching! bling! bling!)

Besides many laws are just a slap on the wrist for many corporations.
Lets say you have a law that states whenever you steal you have to pay 3/4 of it back. Wouldn't that be an incentive to steal?

White collar criminal: "Geez, I feel bad stealing 1 billion dollars from our employees and chareholders. I will give you $750 million back."

Give me a break.


It never ends...
By Mels on 10/24/2006 7:39:19 PM , Rating: 2
Lik-Sang is gone... so now two more clones will appear.

The public demand for Lik-Sang exists and will be filled one way or another. Sony can either, figure out a way to co-exist or they can continue to pay millions for legal fees.





RE: It never ends...
By augustus524 on 10/24/2006 11:14:38 PM , Rating: 2
E-bay in some way is pretty much like Lik-Sang, except it lack organisation.

"trying to protect consumers from being sold hardware that does not conform to strict EU or UK consumer safety standards, due to voltage supply differences et cetera; is not - in PS3's case - backwards compatible with either PS1 or PS2 software; will not play European Blu-Ray movies or DVDs; and will not be covered by warranty."

Could someone see the relationship/trend between "voltage supplies" and batteries for notebook make by Sony?
As for the Blue-Ray...we are just idiot to them?


This might make me buys a PS3...
By EarthsDM on 10/24/2006 1:06:46 PM , Rating: 1
...just because Sony loses money on each unit sold. I mean, after all, I do like linux ; )




RE: This might make me buys a PS3...
By Aikouka on 10/24/2006 1:38:09 PM , Rating: 2
Haha, that's a nice cop-out ;). But Sony's already lost out on the money, as they sell the units to retailers who then sell them. So regardless if you buy one or not, Sony's already lost the money :D.


Meanwhile, elsewhere...
By Griswold on 10/24/2006 1:07:38 PM , Rating: 1
Whatever. I still fail to see how this UK court ruling is valid for the rest of europe. Maybe most of their business or distribution went through the UK, who knows, and that lead to the decision to close the shop but this whole thing smells fishy - but fish aint always bad.

A brandnew upstart, named Sak-Ling, opens its doors and is ready to take your orders for imported games, gadgets and gear.




RE: Meanwhile, elsewhere...
By Aikouka on 10/24/2006 1:27:15 PM , Rating: 2
From my take on the original ruling, I believe it deals with the UK's inclusion in the European Union. Since the UK said their sales to the country were not legit, means the importing was not legit. If I remember right, there's a ruling in the trade rules of the EU that state no item may be barred in one country but still sold in another.

Sony also got Lik-Sang on exportation of proprietary information (i.e. the hardware itself) rules and how the export to a country that has a presence of the company (Sony) did not have the item available in the country hampered Sony's ability to properly distribute products and harmed potential revenue.

To us end-consumers, it looks dumb. I mean, a unit sold is a unit sold, right? I honestly don't know if doing this really hurts sony... it's not like anyone watches UMD movies on their PSP anyway ;).


Assimilate this !!
By Madellga on 10/24/2006 12:42:51 PM , Rating: 2
Just like in the news from Friday, no freedom of choice allowed.

European Safety standards....like they have different products for different markets. The difference is the power cord, color system and software programing (region code).

I hope Sony gets some payback in the PS3 business, who knows what the future will reserve for them.

From my side (for different reasons that this news), Sony is out of my shopping list. Cameras from Canon, TV from Sharp, Hifi from Yamaha or Denon, there are better products on the market, cheaper and no only a name behind it.
And no "proprietary format" either.




so now enforcing the law = bad?
By michal1980 on 10/24/06, Rating: -1
RE: so now enforcing the law = bad?
By cnimativ on 10/24/06, Rating: 0
RE: so now enforcing the law = bad?
By FITCamaro on 10/24/2006 2:36:00 PM , Rating: 2
I agree. What should be so illegal about owning a Japanese PSP, PS3, or any other product in a country other than Japan? What if you're Japanese and don't live in Japan? Should you have to buy one that doesn't output things in the language you primarily speak?

The law shouldn't exist to begin with. Don't compare that kind of law with a law stopping the trade of say illegal drugs or other contraband. As long as the business is legit and providing a service that is honest and something people want, whats wrong with it?

I have a friend who is trying to learn Japanese and plays FFXI. So he bought the Japanese version of FFXI. Is he a criminal for doing this to try and learn a language?


RE: so now enforcing the law = bad?
By michal1980 on 10/24/06, Rating: -1
RE: so now enforcing the law = bad?
By Aikouka on 10/24/2006 3:25:37 PM , Rating: 1
I believe the PSP was made in China (I looked on mine as I have it with me, but with a quick glance, I don't see a "Made in ___" label), so wouldn't Lik-Sang be controlling a product built in its country? ;)

Also, it isn't competition laws, or Sony would not be suing Lik-Sang. The retail outlets in the UK could be suing if they believed Lik-Sang's importing created an unfair environment. It's Sony trying to control the exportation of a product to a country that they have a presence in and they haven't officially released the product yet. Consider it like DVDs where the only reason we have region protection is to avoid shipping DVDs to other countries that don't have the movie yet (or still have it in theaters).


RE: so now enforcing the law = bad?
By Aikouka on 10/24/2006 3:26:31 PM , Rating: 3
Oh! I forgot to mention.

I will make sure to break the speed limit driving home today just for you, Michal1980 :).


RE: so now enforcing the law = bad?
By hubajube on 10/24/2006 3:49:19 PM , Rating: 1
You can add not using the turn signal, improper distance from the car in front, keeping right and only using the left lane for passing, and the myriad other traffic laws that we ALL violate on a daily basis. Everyone is a hypocrite.


RE: so now enforcing the law = bad?
By Aikouka on 10/25/2006 10:09:24 AM , Rating: 2
Hudajube, I will say now that I have only once purposely not used my turn signal as I am very anal about that. The only time I didn't use it is when someone going slower than me merged in front of me on the expressway without using a turn signal. So I did it back to him ^_^. In this case, two wrongs did make a right... turn... oh I'm so good with those puns.

I may drive fast and break the law doing it, but I guarantee that I drive better than 90% of the drivers out there (one example is how I don't have to use other lane to turn with on tight turns where people tend to slow down to below the speed limit; however, I can take them going above the speed limit and keeping in my lane :P).

But yeah, people tend to break a lot of laws while driving :P. I know I've also talked on my cell phone while driving in New York, and I think the law's absolutely baseless as someone being sick and sneezing in the car can take away their focus just as badly if not worse! Also, talking on a cell phone has never removed my focus from the road, but dialing a number or writing text messages (yes, I've done that while driving with no problem... not using T9 makes it even more of a challenge ;)) while driving is much harder and you lose more focus.

Sorry for a bit of this off-topic rant, but I'll admit that my #1 pet peeve is bad drivers.


By MamiyaOtaru on 10/29/2006 8:42:08 PM , Rating: 2
Taking corners too fast doesn't make you a good driver.

Yeah I know, it's worked out for you so far. That doesn't make you good though, it makes you arrogant. A good driver needs a little humility, you need to recognize that driving carries with it a risk of death for yourself and those around you. Confronting that risk by taking corners faster than everyone else actually makes you a rather poor driver. It's not NASCAR out there on the freeway.

People like you (and Ben Roethlisberger are always the ones who "never thought it could happen to me." If you're lucky, it won't but you certainly have a better chance of it happening to you than most. Recognize.


RE: so now enforcing the law = bad?
By BigPeen on 10/25/2006 1:00:35 AM , Rating: 2
um yes that does give me the right to break it. Following bad laws only perpetuates them. You guys are all missing the point of this law. to raise profits for one group. thats it, no "moral" reason or anything reasonable.


RE: so now enforcing the law = bad?
By bbomb on 10/24/2006 2:25:30 PM , Rating: 2
I think that people are more pissed about how Sony went about getting them to stop. Instead of just asking them not to they chose to sue them until the company went out of business. Sony didn't just want them to stop, they wanted Lik-Sang to go under. That is why they filed half a dozen separate lawsuits instead of just one.



RE: so now enforcing the law = bad?
By tfk11 on 10/24/2006 2:27:05 PM , Rating: 3
If all laws were "good" then enforcing the law would also be good... but that's not the case. The people you fail to understand are people with the ability to think for themselves rather than accept any law simply because it is written.


RE: so now enforcing the law = bad?
By Madellga on 10/24/2006 3:45:10 PM , Rating: 2
You got it wrong. They were not importing into UK. NORMAL PEOPLE were buying from them and importing into UK. They were selling it from HK.

Normal rules say you can't import illegal articles, like drugs, firearms, fake and pirated products.

There should be no issues for someone importing a piece of hardware, as long as taxes and custom duties are paid. UK government should care about more important matters than things like this.

What happens if a British travels to Japan and brings a PS3 on his bag? Should he go to jail and have the PS3 seized?


RE: so now enforcing the law = bad?
By BZDTemp on 10/24/2006 5:51:58 PM , Rating: 2
I Personally bought a PSP from Lik Sang, among other things over the years, and the thing is just the same as the PSP you buy in europe. It comes with an original SONY charger which works globally and it carries the EC markings and other stuff making a legal electric appliance.

This case is not about SONY wanting to protect it's customers - it's about SONY wanting to make sure they can control the prices. Guess where in the world consumer goods is the most expensive. The EU - yes that is correct. Some of that high price is due to taxes and wages being high but that is not all. Multi national companies are also cashing in because we are rich but why should they make more money of us that they make of the Japanese, the US people or for that matter the people from the third world. Trade is global but the multinational only like it when they can control it.


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