
Originally Posted by
UltraDavid
"Well, Ryan said it was cool to talk about it, so, ok.
They got a cease and desist letter from Capcom and told me about it a few days later. Very common looking C&D, "it has come to our attention that you're making stuff like x that infringes on our rights including y, as you may be aware there are laws against that including z," blah blah. But it was legit.
So I thought about ways to get around this for a while and then wrote a reply letter saying we believe we're acting legally and you can't stop us and here's why.
Fair use arguments are pretty weak in general, there's always so much uncertainty in them. Different courts and different judges on the same courts think differently about it and there have been cases that seem identical that have different results. Betting a case on fair use is dumb. But in legal arguments you pretty much throw whatever you can at the other side and see what sticks. Maybe fair use would work, who knows? So I included a fair use argument centering on the transformative nature of what CC was doing and the positive market impact it had. I don't think it was a bad argument at all but I wasn't sure it would have been enough to win on.
So I also made an equitable estoppel argument. The idea of equitable estoppel is basically, if person A knows person B is infringing on A's rights, and if A acted in such a way that would convince B that A was cool with that, and if B didn't actually know that A wasn't cool with it, and B then relied on all that in going about its business, then A can no longer prevent B from using A's rights.
For this case, Capcom knew that Cross Counter had been infringing and acted in a way that suggested to Cross Counter that everything was cool. CC had been doing its thing for a couple years at that point and Gootecks himself had been doing the same kind of thing for 4 years, so there was no way Capcom could have missed them. And in any case Capcom actually WORKED with CC on a couple occasions. We even sent pics of a couple CC event posters that had official Capcom logos on them indicating Capcom's participation along with our reply letter. So Gootecks & the rest of the CC guys had no reason to believe Capcom wasn't cool with what they were doing. They all reasonably believed that Capcom was cool with everything, and they relied on that in continuing to build their business in part on Capcom's IP.
And now Capcom comes in and says no all of a sudden? I'm sorry, but no, you can't do that. You can't let people rely on your implicit and in some cases explicit allowance of their infringement of your rights for 2-4 years, and then change your mind real fast.
If this case had gone to court, I'm reasonably confident we would have won. I suspect that Capcom's attorneys agreed, because after I sent my letter in, negotiations with Capcom seemed to go better.
As Ryan said, the CC guys got to talk with Svensson. I was supposed to be in on the call but for reasons I can't remember now I couldn't make it that day. Svensson said they were in the clear for event and game footage but couldn't give them a writing to that effect, which meant that we had to go back to just relying on Capcom's good will. He was gonna put the CC guys through to Brady to talk about getting a license to make informational vids and stuff, but I dunno if that ever happened.
I started gathering people behind the scenes, talking to community managers and people who I thought would be helpful to have on our side. But then I guess things fell apart internally in Cross Counter, and that was that.
If Ryan or anyone else involved reads this, let me know if that all sounds accurate. I don't want to get anything wrong."