News Reports Datablitz Raided for Selling “Pirated” Software

On November 5, 2012, Monday, simultaneous raids led by CIDG were held in various branches of game and software distributor Datablitz, Inc., as they were publicly selling NBA 2K13 products without any prior authority and consent from NBA2K13 exclusive distributor in the Philippines, X-Play Online Games, Inc.

While you can coordinate directly with CIDG for the specific details of the raid, we would like to shed some light on the premise of X-Play as to why it has come to this extent. Please know that X-Play had no other intention but to protect their business, and to exercise their responsibility to their partners and the community they are in.

OFFICIAL STATEMENT OF X-PLAY

It is unfortunate that businesses had to be disrupted by the incident that transpired yesterday. While we sympathize with other individuals dragged on by this issue, we stand by our ground to be vigilant in dealing with illegal activities to protect our rights, our partners and our local gaming community.

This is not a knee-jerk reaction from X-Play. In fact, meetings were held with Datablitz President, Winston Lim and his team to become X-Play’s primary partner for NBA 2K13. Datablitz key executives Sandra Lu and Orpha Oambas even participated in X-Play’s distributor conferences and got all the marketing and distribution plans of the company.

Datablitz’s decision to acquire and distribute NBA 2K13 through unauthorized means despite these efforts, leaves X-Play no other option but to report this to the proper authorities, in which CIDG and the Regional Trail Court took immediate action on.

The action of Datablitz was not only detrimental to X-Play but also affected other smaller retailers, game stores and entrepreneurs.
We hope nothing more but to resolve this predicament but will hold firm in protecting the industry from smugglers and illegal operators.

FACT SHEET

FACTS OF THE CASE
The complaint was for “unfair competition” defined under Section 168 of Republic Act No. 8293 or the Intellectual Property Code of the Philippines.
By selling the NBA2K13 Products without authority from EpicSoft and/or XPlay, the exclusive distributor thereof in the Philippines, Datablitz, Inc. took a “free ride” on the good will and marketing excitement established by XPlay, thereby engaging in “unfair competition” to the prejudice of-Xplay and all of its rightful distributors most of which are small retail outlets.

MEETINGS WITH DATABLITZ
Meeting between Take 2 Interactive, X-Play, and Datablitz

• Date: September 6, 2012
• Location: New World Hotel

Discussion Points:

• X-Play will be Official Distributor for NBA 2K13
• X-Play wants Datablitz as a primary partner, and requested Datablitz to advise on support requirements it would need for NBA 2K13

Distributors Conference 1

• Date: September 13, 2012
• Location: Max Restaurant, Gateway Mall, Cubao, Quezon City
• Attendees: Sandra Lu, Datablitz Purchasing Head, Orpha Oambas, Datablitz Marketing and Events Manager

Discussion Points:

• Briefing on X-Play Product Portfolio
• Briefing on Marketing Programs
• Discussion of Commercial Terms and Trade Concerns

Distributors Conference 2

• Date: September 27, 2012
• Location: Max Restaurant, Gateway Mall, Cubao, Quezon City
• Attendees: Sandra Lu, Datablitz Purchasing Head Orpha Oambas, Datablitz Marketing and Events Manager

Discussion Points:

• Discussion on NBA 2K13 Trade Programs, inclusive of all commercial terms.
• Briefing on NBA 2K13 Marketing Program

Lunch Meeting between Datablitz and X-Play Top Executives

• Date: September 28, 2012

Discussion Points:

• In-depth Discussion on partnership Agreement and Concerns
• Sealed partnership Agreement via a Handshake

Meeting between X-Play Sales Team and Datablitz Operations and Purchasing Heads

• Date: September 28, 2012

Discussion Points

• Discussion on actual orders to be placed by Datablitz
• Operational discussion involving Purchase Order releasing, delivery timeframe, and collateral distribution.